The CBN has introduced the Global Standing Instruction #GSI as a last resort for a bank to recover monies owed by a borrower. In simple terms, it means your money in one bank may used to pay your debt in another bank without asking for your permission to do so.
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The rule applies to loans granted from 28 Aug 2019 while implementation is effective from 1 Aug 2020.
In the event of a default, all monies in all your bank accounts, investment accounts, electronic wallets, dom accounts and joint accounts may be debited.
The debt that may be recovered includes principal amount and accrued interest but not penal charges.
Customers who try to game the system such as failure to link all their eligible accounts will be watch-listed.
Moral of the whole story -
When you borrow, make sure to pay back especially if you have the means.
And be careful who you operate a joint account with or you may lose your money.
When you borrow, make sure to pay back especially if you have the means.
And be careful who you operate a joint account with or you may lose your money.
