The Central Bank of Nigeria (CBN) has issued a warning to banks and other financial service providers, urging them to cease contacting customers’ relatives or friends for debt recovery purposes.
This directive was outlined in the CBN’s “Revised Consumer Protection Regulations,” published on its official website.
The document emphasizes the importance of respecting data privacy and notifying customers of outstanding obligations before commencing debt collection activities.
Financial institutions are urged to ensure that the debt recovery process is transparent, courteous, and fair.
Additionally, customers should be given the option of a private sale before foreclosure, with a 30-day window for exercise unless waived by the customer.
The CBN prohibits providers from contacting individuals other than the borrower for information, except in cases where the person has guaranteed the loan or consented to be contacted.
Peoplesmind
