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Resort Savings and Loans Ltd. (RSL) is in trouble for allegedly diverting consumers’ funds as the Consumer Protection Council (CPC) beam torch on the allegation.
This is contained in a statement issued by the Head, Public Relations of CPC, Mr Abiodun Obimuyiwa, on Sunday in Abuja.
According to the statement, the Primary Mortgage Bank is to be investigated by CPC, due to complaints by consumers bordering on alleged diversion of mortgage loans and consumers’ deposits by RSL.
RSL is licensed by the Central Bank of Nigeria (CBN) to undertake mortgage businesses and it is also registered with the Federal Mortgage Bank of Nigeria (FMBN).
The statement said that CPC had communicated details of the complaints from the aggrieved depositors and mortgage contributors to RSL for full response.
It stated that failure of the company to respond appropriately had placed the option of the prosecution of the firm’s principal officers before it.
“CPC has already appraised the sector regulator, CBN and FMBN of the allegations against the company.
“Some of the allegations against the company included its failure to pay back deposits made by consumers, even after the agreed tenure was over,’’ it said.
In addition, the statement said that RSL allegedly diverted loans disbursed to mortgage beneficiaries by FMBN and gave incorrect information to consumers about their applications for National Housing Fund.
Commenting on the development, the statement said that CPC’s Director-General, Mrs Dupe Atoki, said the Council was determined to investigate the operations of the company.
“CPC will also engage in other legal steps in line with its enabling law with a view to protecting the consumers of the services of the primary mortgage company,” the statement quoted Atoki as saying.
This is contained in a statement issued by the Head, Public Relations of CPC, Mr Abiodun Obimuyiwa, on Sunday in Abuja.
According to the statement, the Primary Mortgage Bank is to be investigated by CPC, due to complaints by consumers bordering on alleged diversion of mortgage loans and consumers’ deposits by RSL.
RSL is licensed by the Central Bank of Nigeria (CBN) to undertake mortgage businesses and it is also registered with the Federal Mortgage Bank of Nigeria (FMBN).
The statement said that CPC had communicated details of the complaints from the aggrieved depositors and mortgage contributors to RSL for full response.
It stated that failure of the company to respond appropriately had placed the option of the prosecution of the firm’s principal officers before it.
“CPC has already appraised the sector regulator, CBN and FMBN of the allegations against the company.
“Some of the allegations against the company included its failure to pay back deposits made by consumers, even after the agreed tenure was over,’’ it said.
In addition, the statement said that RSL allegedly diverted loans disbursed to mortgage beneficiaries by FMBN and gave incorrect information to consumers about their applications for National Housing Fund.
Commenting on the development, the statement said that CPC’s Director-General, Mrs Dupe Atoki, said the Council was determined to investigate the operations of the company.
“CPC will also engage in other legal steps in line with its enabling law with a view to protecting the consumers of the services of the primary mortgage company,” the statement quoted Atoki as saying.
