FCCPC Tackles Wema Bank Over Alleged Illegal Banking Practices

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By Aduragbemi Omiyale

The Federal Competition and Consumer Protection Commission (FCCPC) has reacted to reports alleging Wema Bank Plc of engaging in illegal banking practices.

The bank was accused of opening accounts without the consent of customers and for FCCPC, this is a serious issue that must not be swept under the carpet.

The agency has asked the financial institution to explain why the information of Nigerians was allegedly harvested from the Bank Verification Number (BVN) by its agents and employees to open the unauthorised accounts.

According to reports, some persons discovered that their data on Wema Bank’s digital banking platform, ALAT, was used without their knowledge to open the illegal bank accounts to celebrate the platform’s 5th anniversary.

Worried about the negative impact this action may have on the financial system and to protect the interest of banking consumers, the FCCPC asked the lender to react to the matter.

The issue started after a social media user on Twitter with the handle, @cute_pecky wrote on Thursday, “I don’t own a Wema Bank acct, never owned one. The other day, I got an OTP, and now I got emails like I’m a customer.

“I have also read some fraudulent activities in your bank. This is a violation of data rights with CBN, I need a lawyer!” She later tagged FCCPC, the Central Bank of Nigeria (CBN) and others in the post.

ALAT by Wema illegal account opening

While reacting, the bank said, “Hello, we are concerned about your post and we will like to address any complaints. Kindly send us a DM, so we can help.”

The FCCPC, in a response on Friday, asked “can Wema Bank comment publicly on the message that consumers without Wema Bank accounts are receiving across the country, allegedly from the bank? This situation is widespread and cannot be a DM issue anymore. Wema Bank has to come clean.”

Wema Bank unauthorised accounts

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