Use prudence before opening bank accounts – BAZ

Bankers Association of Zambia (BAZ) chief executive officer Leonard Mwanza has advised members of the public to thoroughly read and understand bank conditions before opening accounts.

Mr. Mwanza said members of the public should understand customer application forms which outline charges and fees from respective banks they are wishing to bank with.

Speaking on Millennium Radio morning chat, Mr. Mwanza said it was mandatory for each bank to disclose all chargeable fees to customers before they opened an account.

“When people are opening an account they rush to sign the contract even before reading and understanding the conditions of that particular account.

“I want to advise members of the public that before you open an account read the conditions,” Mr. Mwanza said. He said it was important for people to fully understand the terms and conditions of the account before signing the contract.

He said the same applied to loans where some clients of respective banks did not fully understand the conditions of the loan but went ahead to obtain funds.

“When people apply for loans the term sheet spells all the conditions and charges included; if they can’t read let them involve a banker to help them explain the conditions of the loan.

“It is mandatory for all the banking institutions in Zambia to disclose all the charges and conditions to customers before engaging in any agreement,” Mr. Mwanza said. Mr. Mwanza also said almost all the contractual forms whether for opening an account or loans, the fees were disclosed to the clients.

In February this year the Bank of Zambia (BoZ) warned that it would be forced to regulate the banking sector on bank charges to protect consumers following reports that some commercial banks were charging customers’ savings accounts which was illegal. – Courtesy of Millennium Radio.