Account debit – Can the bank debit my account without telling me?
September 25, 2020
Account debit – So he got so annoyed, on the aftermath keeps calling my phone as though his life depends on me taking the calls from the other end.
In the meantime, according to a data released by the Nigerian Inter Bank Settlement System (NIBBS) in the heat of COVID – 19, Nigeria’s active bank accounts increased by 14.41 % from 97.485 million active accounts to 111.54 million.
In view of this, Nigerians have continued to express their worries over certain fraudulent developments in the banking industry, this surge could be attributed to the fact that we are beginning to have more banked than unbanked.
Now back to our story…….. I became so unstable to even take the calls since I grew so afraid that he might hit me with unsavory news.
In the end I found the courage to answer from the other end….., all he did was lamenting on how his bank account was debited without effecting any transaction.
It sounds unusual, but given that fraudsters are on rampage these days, it will constitute a foolish idea not to panic or raise alarm as to what possibly could had led to such debit.
That said, to the glory of God it was an unauthorized debit, but not a fraudulent one.
This guide will try to answer the following questions;
- Debit and Credit in banking
- Equity account debit or credit
- Is deposit to bank account Debit or Credit
- Debit and Credit balance
If pa adventure you have the same issue as one of my friends who gave me endless calls pertaining a debit he gets in his account despite not authorizing the bank to do so, or you’ve been asking any of the above questions or more, rest assured you arrived at the right place.
Can the bank pass a debit on your account without you authorizing such?
The answer to this “puzzle” is Yes and No.
There are few instance where a bank could pass a debit on your account;
- In event of fees and service charges, like account maintenance, SMS alert, COT etc.
You have agreed to abide by these charges at the time of opening an account with the bank, this consent was granted at the later end of the account opening form/package.
It’s called the service “Terms and Condition,” in most cases it starts by saying “I agree.”
Agreeing to this term means you’ve given your express consent to the bank to carry most of the activities that may not really digest well with you in the future, hope that’s clear now.
- A bank may pass a debit in your account in event of wrong posting.
Sometimes, frontline tellers who pay and receive your deposit could credit an account erroneously, mistakes cannot be ruled out totally since they are humans too.
When such errors occur, customers who benefit from such credits always play smart by withdrawing such deposit at the speed of light.
When a teller is lucky enough to have noticed a wrong posting, it’s pertinent to initiate reversal.
By this practice, a debit will likewise occur in your account to the tune of amount credited earlier.
However, the tellers would need to carry their supervisors a long before the said action is executed, the bank Internal Control Officer should also be on the know, otherwise it will spring complications and integrity could be in doubt.
This point is not outstanding, but usually occur because they want to play safe, which in its entirety is understandable.
- A bank may not be able to pass a debit in your account without authorization
It is not expected that the bank will pass a debit in your account without your consent.
This is why “Bank mandate instruction exists.”
By this arrangement, you are expected to endorse your signature specimen on a withdrawal instrument, which must be confirmed alongside image before payment/debit could be effected.
The essence of this practice is to ensure that your account is not being tampered by any one.
Your image and signature must correspond with what is obtainable on the system, otherwise it’s assumed that you’re an impostor.
While that stands, there are certain accounts you may not pass debit on e.g FIRS etc, to debit such accounts on event of error posting, the bank will have to write to the Auditor general of the federation, this could be a herculean task.
Freuently Asked Questions on Account debit
#1. Debit and credit in banking
When your bank account is debited, it means money has been taken out of the account, this is a bookkeeping term for the realization of the reduction of deposit held by the bank customer.
This occurs when a customer uses the funds in their bank account.
A bank debit is a reduction in deposits held at the bank, they could come from cheque payment, ATM withdrawals etc.
#2. Equity account debit or credit
Revenue is treated like capital which is an owner’s equity account, owner’s equity is increased with a credit and has a normal credit balance.
Expenses reduce revenue, hence they are just the opposite, increased with a debit and have a normal debit balance.
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