₦airaland Forum

There is one banking truth in this country that will shock you. And the banks will never tell you this.

Because it is one of the biggest tools they use to debit people’s accounts without warning.
And Nigerians, out of fear and ignorance, think it is normal.

But this is not normal. It is illegal. And you can sue the bank or report them to CBN.

Let me explain it clearly.

You see that thing that someone will send you money and the bank will automatically deduct or take all of the money for loan repayment?

By law, no bank in Nigeria has the right to debit your account for any loan repayment unless you signed a written debit mandate.

Not “verbal agreement.”
Not “you applied on the app.”
Not “the loan officer said so.”
Not “you clicked accept.”
Not “we assumed you agreed.”

Even if you are owing Billions, there must be a clear, documented, signed mandate giving the bank permission to take money from your account before they can legally do so.

This is a Central Bank of Nigeria consumer-protection rule, and it protects Nigerians from unauthorized deductions, intimidation, and exploitation.

So why do banks get away with illegal debits?

Because most Nigerians don’t know the law. (I don’t know why no musician has produced “Show Me the Law Song” we need such a song because most Nigerans don’t know the law.)

Most people don’t know they even have this right.
Most don’t know debit mandates must be signed physically or digitally with proper documentation.
Most don’t know they can challenge the deduction.
Most don’t know they can demand the signed mandate.
Most don’t know the bank must refund if the mandate doesn’t exist.

So the banks take advantage of the ignorance.

They debit you from another account.
They take money from your salary account.
They clean out your savings.
They go into dormant accounts.
Some even enter joint accounts.
And when you complain, they intimidate you with technical language.

“System flagged your account.”
“Your BVN is linked.”
“It’s part of the loan terms.”
“It was in the app.”

But the law remains:

Without a signed, specific debit authorization, the bank has no legal right to touch your money.

None.

What you can do starting today:
-Ask your bank to show you the signed debit mandate on any loan you owe.

-If they cannot produce it, request an immediate refund.

-If the bank refuses, report them directly to CBN Consumer Protection: cpd@cbn.gov.ng

-Attach your bank statement and complaint.
-CBN usually forces the bank to refund the unauthorized deduction.

Banks fear CBN queries more than anything else.

Know your rights, but most importantly, pay your debts.

Interesting...

Someone needs to sue them as a deterrent.

I was talking with a neighbor and he got calls that seem to unsettle him. He told me that Palmpay people are on his neck. According to him, he got a loan of 15k and originally he was to pay back 18k plus within 29 days. Well, being a salary earner, he opted for the loan with the hope that he would pay back in less than two weeks after collecting his salary. When he was applying for the loan, Palmpay broke down the loan in 7 days duration, he was asked to pay the loan every 7 days in 3 tranches/installments.

At the end of the first 7th day, he started receiving calls and demoralizing msgs tagging him fraudulent, and threats that they'd start calling his contacts every 30 minutes and even curses like his family members will die, his community will mourn him bla bla bla. Also, from that 7th day, he started getting daily overdue fee. In less than a month, a principal loan of 15k is racing towards 30k. It was then that I had to embolden him, I told him not to pay a dime and that the real fraudster is Palmpay and not him.

I later got to know that it wasn't even Palmpay ongoings, it was a brand called Flexicash but it seems the brand is using or hiding under Palmpay to perpetrate such illegal practices and that makes Palmpay to be complicit.

First, a 7 day loan duration is illegal, unethical, lacks common sense and against Google Play Store policies. If Palmpay is on Playstore, then its loan services or subsidiary shouldn't contravene Playstore policies on loan and that makes Palmpay complicit. Also, adding daily overdue fee right from the 7th day until the debt is fully paid is very damaging and very unethical.

It's very embarrassing that in this 2025/2026, we still have some Mr. Shylocks in our regulated finance sectors who are ready to take pounds of flesh from their debtors.

Go and read the fine print of your account opening package.

You will see the clauses there as part of agreement to allow bank to debit you.
The bank is not a charity organization.

De play.
Banks have a complete department of smart, legal minds.
Check you account opening documentations and you will find set-off clauses.
Check your loan conditions and you will find global standing instruction clauses.

giftson102:
There is one banking truth in this country that will shock you. And the banks will never tell you this.

Because it is one of the biggest tools they use to debit people’s accounts without warning.
And Nigerians, out of fear and ignorance, think it is normal.

But this is not normal. It is illegal. And you can sue the bank or report them to CBN.

Let me explain it clearly.

You see that thing that someone will send you money and the bank will automatically deduct or take all of the money for loan repayment?

By law, no bank in Nigeria has the right to debit your account for any loan repayment unless you signed a written debit mandate.

Not “verbal agreement.”
Not “you applied on the app.”
Not “the loan officer said so.”
Not “you clicked accept.”
Not “we assumed you agreed.”

Even if you are owing Billions, there must be a clear, documented, signed mandate giving the bank permission to take money from your account before they can legally do so.

This is a Central Bank of Nigeria consumer-protection rule, and it protects Nigerians from unauthorized deductions, intimidation, and exploitation.

So why do banks get away with illegal debits?

Because most Nigerians don’t know the law. (I don’t know why no musician has produced “Show Me the Law Song” we need such a song because most Nigerans don’t know the law.)

Most people don’t know they even have this right.
Most don’t know debit mandates must be signed physically or digitally with proper documentation.
Most don’t know they can challenge the deduction.
Most don’t know they can demand the signed mandate.
Most don’t know the bank must refund if the mandate doesn’t exist.

So the banks take advantage of the ignorance.

They debit you from another account.
They take money from your salary account.
They clean out your savings.
They go into dormant accounts.
Some even enter joint accounts.
And when you complain, they intimidate you with technical language.

“System flagged your account.”
“Your BVN is linked.”
“It’s part of the loan terms.”
“It was in the app.”

But the law remains:

Without a signed, specific debit authorization, the bank has no legal right to touch your money.

None.

What you can do starting today:
-Ask your bank to show you the signed debit mandate on any loan you owe.

-If they cannot produce it, request an immediate refund.

-If the bank refuses, report them directly to CBN Consumer Protection: cpd@cbn.gov.ng

-Attach your bank statement and complaint.
-CBN usually forces the bank to refund the unauthorized deduction.

Banks fear CBN queries more than anything else.

Know your rights, but most importantly, pay your debts.

You people will just come online and start spreading untruths with the intention of misleading ignorant people

So you think a bank will go ahead and do a direct debit on the account of a customer without first making sure that it has obtained a signed consent from the client.

I pity the person that will rely on the half-baked advise you have offered here!

MarkNsukkaBread:
You people will just come online and start spreading untruths with the intention of misleading ignorant people

So you think a bank will go ahead and do a direct debit on the account of a customer without first making sure that it has obtained a signed consent from the client.

I pity the person that will rely on the half-baked advise you have offered here!

You just affirmed what was written in the write up, so what's the basis for your argument??
....the write up said NO BANK HAS THE RIGHT TO DEBIT AN BANK ACCOUNT WITHOUT A SIGNED CONSENT FROM THE ACCOUNT OWNER.
And that you've affirmed..

otomatic:
De play.
Banks have a complete department of smart, legal minds.
Check you account opening documentations and you will find set-off clauses.
Check your loan conditions and you will find global standing instruction clauses.

Try to read and understand..
No conventional bank in Nigeria gives out loan without a written and signed documentation.
The emphasis here is on Fitech companies or banks that keeps harassing people over loans...

Lush100:
Go and read the fine print of your account opening package.

You will see the clauses there as part of agreement to allow bank to debit you.
The bank is not a charity organization.

Try and understand please.. that means there must have been a signed agreement.
But did you sign any written agreement when open account number or access loans form FITECH COMPANIES

giftson102:
Try to read and understand..
No conventional bank in Nigeria gives out loan without a written and signed documentation.
The emphasis here is on Fitech companies or banks that keeps harassing people over loans...

You should read what you wrote again.

The subject has "banks " .
In the post too, you kept referring to banks.

Now you are saying fintechs. Are fintechs not licensed?
Without proper licence, how will they execute direct debit mandates on accounts?
Do you think fintech debit mandates/requests will be honoured by banks if they are not licensed? Or you think anybody can debit anybody and expose the banks to litigation?

Even the fintechs giving out loans would have obtained consent and other permissions electronically.
Shebi you go just click "accept" and "continue". That is giving consent
It is not their fault that you don't read terms before clicking.

No dabble in matters above your pay grade.

giftson102:
There is one banking truth in this country that will shock you. And the banks will never tell you this.

Because it is one of the biggest tools they use to debit people’s accounts without warning.
And Nigerians, out of fear and ignorance, think it is normal.

But this is not normal. It is illegal. And you can sue the bank or report them to CBN.

Let me explain it clearly.

You see that thing that someone will send you money and the bank will automatically deduct or take all of the money for loan repayment?

By law, no bank in Nigeria has the right to debit your account for any loan repayment unless you signed a written debit mandate.

Not “verbal agreement.”
Not “you applied on the app.”
Not “the loan officer said so.”
Not “you clicked accept.”
Not “we assumed you agreed.”

Even if you are owing Billions, there must be a clear, documented, signed mandate giving the bank permission to take money from your account before they can legally do so.

This is a Central Bank of Nigeria consumer-protection rule, and it protects Nigerians from unauthorized deductions, intimidation, and exploitation.

So why do banks get away with illegal debits?

Because most Nigerians don’t know the law. (I don’t know why no musician has produced “Show Me the Law Song” we need such a song because most Nigerans don’t know the law.)

Most people don’t know they even have this right.
Most don’t know debit mandates must be signed physically or digitally with proper documentation.
Most don’t know they can challenge the deduction.
Most don’t know they can demand the signed mandate.
Most don’t know the bank must refund if the mandate doesn’t exist.

So the banks take advantage of the ignorance.

They debit you from another account.
They take money from your salary account.
They clean out your savings.
They go into dormant accounts.
Some even enter joint accounts.
And when you complain, they intimidate you with technical language.

“System flagged your account.”
“Your BVN is linked.”
“It’s part of the loan terms.”
“It was in the app.”

But the law remains:

Without a signed, specific debit authorization, the bank has no legal right to touch your money.

None.

What you can do starting today:
-Ask your bank to show you the signed debit mandate on any loan you owe.

-If they cannot produce it, request an immediate refund.

-If the bank refuses, report them directly to CBN Consumer Protection: cpd@cbn.gov.ng

-Attach your bank statement and complaint.
-CBN usually forces the bank to refund the unauthorized deduction.

Banks fear CBN queries more than anything else.

Know your rights, but most importantly, pay your debts.

Banks all over the post

giftson102:
There is one banking truth in this country that will shock you. And the banks will never tell you this.

Because it is one of the biggest tools they use to debit people’s accounts without warning.
And Nigerians, out of fear and ignorance, think it is normal.

But this is not normal. It is illegal. And you can sue the bank or report them to CBN.

Let me explain it clearly.

You see that thing that someone will send you money and the bank will automatically deduct or take all of the money for loan repayment?

By law, no bank in Nigeria has the right to debit your account for any loan repayment unless you signed a written debit mandate.

Not “verbal agreement.”
Not “you applied on the app.”
Not “the loan officer said so.”
Not “you clicked accept.”
Not “we assumed you agreed.”

Even if you are owing Billions, there must be a clear, documented, signed mandate giving the bank permission to take money from your account before they can legally do so.

This is a Central Bank of Nigeria consumer-protection rule, and it protects Nigerians from unauthorized deductions, intimidation, and exploitation.

So why do banks get away with illegal debits?

Because most Nigerians don’t know the law. (I don’t know why no musician has produced “Show Me the Law Song” we need such a song because most Nigerans don’t know the law.)

Most people don’t know they even have this right.
Most don’t know debit mandates must be signed physically or digitally with proper documentation.
Most don’t know they can challenge the deduction.
Most don’t know they can demand the signed mandate.
Most don’t know the bank must refund if the mandate doesn’t exist.

So the banks take advantage of the ignorance.

They debit you from another account.
They take money from your salary account.
They clean out your savings.
They go into dormant accounts.
Some even enter joint accounts.
And when you complain, they intimidate you with technical language.

“System flagged your account.”
“Your BVN is linked.”
“It’s part of the loan terms.”
“It was in the app.”

But the law remains:

Without a signed, specific debit authorization, the bank has no legal right to touch your money.

None.

What you can do starting today:
-Ask your bank to show you the signed debit mandate on any loan you owe.

-If they cannot produce it, request an immediate refund.

-If the bank refuses, report them directly to CBN Consumer Protection: cpd@cbn.gov.ng

-Attach your bank statement and complaint.
-CBN usually forces the bank to refund the unauthorized deduction.

Banks fear CBN queries more than anything else.

Know your rights, but most importantly, pay your debts.

Please ignore the long epistle. That is not the position of CBN in bank's loan recovery.

Try palmpay and cry blood. They will with debit the last 19k. Your account go resemble 0.00

abbasajao:
Please ignore the long epistle. That is not the position of CBN in bank's loan recovery.

What I can deduce from the original post is that it's only banks that have the exclusive right to auto debit as along as there's a signed document/mandates between both parties (just your bank and you) And NOT APPS/LOAN SERVICE PROVIDERS and that banks don't have the right to auto debit on behalf of those apps/loan service providers or loan apps. For instance, Palmpay auto debiting for Flexicash is very wrong and against the law.

Wow, this is such crucial information! It's frustrating how many Nigerians are unaware of this CBN rule about signed debit mandates for loan repayments. 😠 We need to empower more people to challenge these unauthorized deductions and demand to see the documentation. 💪

But govt is allowed to debit you over tax?

HeatSeeker:
Interesting...

Someone needs to sue them as a deterrent.

to others?Thanks for this wonderful info

Opay seconded to easemoni no dey deduct from main acct, I still owned easemoni 5k!

otomatic:
De play.
Banks have a complete department of smart, legal minds.
Check you account opening documentations and you will find set-off clauses.
Check your loan conditions and you will find global standing instruction clauses.

. God bless you sir,there is an offer letter before a loan with global standing order which you have to accept before loan is diabursed. Anything pffer that you accept is tantamount to appending your signature

Only OPAY adhere to the rules or law of CBN..
though it's a fintech, but better than so called banks that have more than 1,000 branches

.....most people sign it knowingly or unknowingly, the form they will give you, they will tell you to tick agree at the end and latter sign, how many people reading the details before they sign?

I think Palmpay is not aware of this rule oh I forget Palmpay is not a bank because I'm so sure Palmpay don't need anybody's permission before they debit you even if the money is mistakenly sent to the account 😂

You must be a joker...you think banks do not have legal teams advising on all their operations? Go and check your Account Opening packages, and even the terms and conditions you sign off to electronically without reading all because Nigerians do not have a reading culture. You will be shocked they have every right to debit when you default without recourse to you.

Nigerians do not read........lol

otomatic:
De play.
Banks have a complete department of smart, legal minds.
Check you account opening documentations and you will find set-off clauses.
Check your loan conditions and you will find global standing instruction clauses.

BodePolScience:
I was talking with a neighbor and he got calls that seem to unsettle him. He told me that Palmpay people are on his neck. According to him, he got a loan of 15k and originally he was to pay back 18k plus within 29 days. Well, being a salary earner, he opted for the loan with the hope that he would pay back in less than two weeks after collecting his salary. When he was applying for the loan, Palmpay broke down the loan in 7 days duration, he was asked to pay the loan every 7 days in 3 tranches/installments.



At the end of the first 7th day, he started receiving calls and demoralizing msgs tagging him fraudulent, and threats that they'd start calling his contacts every 30 minutes and even curses like his family members will die, his community will mourn him bla bla bla. Also, from that 7th day, he started getting daily overdue fee. In less than a month, a principal loan of 15k is racing towards 30k. It was then that I had to embolden him, I told him not to pay a dime and that the real fraudster is Palmpay and not him.

Stop lying you're that neighbor

How were they legally able to debit from those who took COVID 19 loans back in the day? They would have put the clause in the length T&Cs permitting them to withdraw the money from the borrower's account if the repayment date has been surpassed knowing Nigerians hardly read the fine details.

@Op, you are 💯 wrong! I wonder why some people post things without proper knowledge/research. FYi, there's a technique known as the 'GSI' Global Standing Instruction....this allows banks to debit from any/all accounts linked to a particular individual's BVN in the event of a loan default. It is legal and binding!

ACCESS BANK una don hear useless bank

Layilawal003:
Stop lying you're that neighbor

I could take loan and I could even be in the shoe of my neighbor, there's no issue with that.

who de tell una dese..as long as there is a coourt order any bank account can be debited ...make una de play

BodePolScience:
What I can deduce from the original post is that it's only banks that have the exclusive right to auto debit as along as there's a signed document/mandates between both parties (just your bank and you) And NOT APPS/LOAN SERVICE PROVIDERS and that banks don't have the right to auto debit on behalf of those apps/loan service providers or loan apps. For instance, Palmpay auto debiting for Flexicash is very wrong and against the law.

All those "I agreed' you ticked and those consent you signed while you opened your account or applied for loan, have you taken your time to read what was written there? De play, by the time you get to court, your eyes will clear