Discrepancies In Customer’s Account Names Reasons For Delay In Payments, Says Heritage Bank MD

Discrepancies In Customer's Account Names Reasons For Delay In Payments, Says Heritage Bank MD
Discrepancies In Customer's Account Names Reasons For Delay In Payments, Says Heritage Bank MD

Bello Hassan, the Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), has elucidated the reasons behind the delays in processing payments for Heritage Bank customers.

He attributed the payment delays to discrepancies in account names within the Bank Verification Number (BVN)-linked alternate accounts of certain defunct Heritage Bank customers. Hassan highlighted that the NDIC has successfully disbursed a substantial sum to customers without BVN account-related issues.

Customers of Heritage Bank who are yet to receive their insured deposit credit alerts are encouraged to visit the NDIC website and complete the necessary payment verification forms, including those without a BVN-linked alternate account.

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“We have already initiated customer payments since June 6. A significant amount has been disbursed to customers. Our payment process relies on customers’ BVNs. We identify alternate accounts in other banks and disburse their insured amounts. However, challenges arise in linking accounts due to discrepancies in names and other details. We urge customers awaiting alerts in their alternate accounts to complete verification forms promptly for payment,” Hassan stated.

Customers holding deposits exceeding five million naira in the bank will receive liquidation dividends. Hassan disclosed that the NDIC has commenced the liquidation process by selling physical assets and implementing strategies to recover loans and advances extended by the bank.

“We utilize the proceeds from asset sales to pay these liquidation dividends. We will not delay payments until full recovery. As recoveries are made, we will notify depositors to expect liquidation dividends in their accounts,” Hassan explained.

It is worth noting that the Central Bank of Nigeria (CBN) revoked Heritage Bank PLC’s banking license on June 3, 2024, citing the bank’s persistent financial underperformance jeopardizing financial stability.

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