Banking
Firm Drags UBA to Court over Illegal Charges, Seeks N3.5b
By Modupe Gbadeyanka
A company named Citygate Global Investment Limited has taken United Bank for Africa (UBA) Plc to court over what it called ‘illegal deductions’ from its account with the bank.
In a suit, FHC/L/CS/407/2017, filed before Justice Oluremi Oguntoyinbo of a Federal High Court sitting in Lagos, the plaintiff urged the court to mandate UBA to pay N3.45 billion to it for the illegal and excess charges, general damages, and litigation cost.
Citygate Global Investment Limited also wants the judge to give an order compelling the bank to publish an apology in five national newspapers for the said alleged excessive and illegal charges.
It further want the judge to grant an order mandating UBA to pay 21 percent interest on the money sought, from the date of filing the suit till judgement and at the rate of six percent from the date of judgement till final liquidation.
According to an affidavit in support of the originating motion deposed to by its legal officer, Ms Busola Oluwole, the company argued that its Chief Executive Officer, Mr Segun Durojaye, narrated to her on March 10, 2017, that a representative of UBA had approached and introduced to him a product called U-Gold Savings Account with an explanation that its features included minimum opening and operating balance of N10,000; Zero C.O.T.; Third party withdrawal; unlimited number of withdrawal; Internet and mobile banking; debit card issuance and SMS and E-mail alerts.
Ms Oluwole further contended that not too long after opening the said account, UBA began misappropriating the applicant’s funds, converting same and plundering the said account with different COT and other charges which UBA had warranted that the account would not be exposed.
While adding that UBA’s misrepresentation, warranties and conditions of contract which the applicant had relied upon, the deponent maintained that it altered the company’s situation and eventually made it to suffer economic losses.
Ms Oluwole further argued that UBA reneged on its warranty and debited the sum of N903,313.
According to the deponent, “UBA unwantedly breached the terms of the contract as well as of those customer-banker relationship existing between parties.
“UBA plundered and subjected the applicant’s funds to wanton debit between October 19, 2011, and March 4, 2015.
“Upon discovery of the said discrepancies, the applicant engaged UBA through its branch and head office to desist from unauthorized and illegal deduction and the bank refused.
“The applicant further engaged the services of a forensic accountant at its own cost to conduct an audit of the account which revealed the said distortion in its accounting operations.
“We were surprised upon receiving a regular, almost automated reply to the correspondence forwarded to UBA, where it stated that Investigation would be conducted on the account, but no reversal was done, and no other report of investigation was received, while UBA continued to withhold the said applicant’s funds.
“Upon filing a suit against UBA at a Magistrate Court which was later struck out for want of jurisdiction, the bank admitted it’s negligence, conversation and breach, and made refund of some funds Illegally debited outside of the two weeks window prescribed by the provision of the Central Bank of Nigeria (CBN) guide to bank charges, without the statutorily prescribed letter of apology to the applicant.
“UBA converted the applicant’s funds in total breach of banker-customer relationship and breach of fiduciary good faith entrusted in the bank.
“The applicant has suffered economic losses in general and specific damages which require recompense.
The deponent, therefore, urged the court to interpret the various documents and policies in favour of the applicant, and award the statutory damages for the applicant against UBA.
But the financial institution in its counter affidavit deposed to by its legal officer, Mr Gabriel Omu, stated that the bank is not in a position to know if the applicant is registered with the Security and Exchange Commission (SEC) or engaged in other activities.
The UBA’s legal officer stated that the bank sometimes in October 2011, introduced to the applicant a new product called ‘U Gold Savings Account’, which has the semblance of a current account, but with Zero COT, and such other features.
Mr Omu said UBA did not represent to the applicant that the other features of the account would not attract usual Bank charges.
He said the bank charges, which the applicant is contesting are for Electronic Fund Transfers, to wit; IRO, NBBS charges; debit card fees; SMS and E-mail alerts from the inception of the account in October 19, 2011 up till March 16, 2015.
He also said the applicant made a total NIP transfers in the total sum of N371,577,000, of which he was charged of N1,130,106. 05; that made up of IRO-NIBBS charges of N29, 279. 25; Bank fess of N1, 048, 396; and Value Added Tax (VAT) of N52, 430. 80.
According to the lawyer, UBA did not make any admission of negligence, conversation or misappropriation of the applicant’s funds at the Magistrate Court, Lagos.
Mr Omu said the action marked MCL/314/16, instituted by the applicant against UBA was struck out for want of jurisdiction in June 2016, while the bank had paid into the applicant’s account a total sum of N1.100,826.08, being VAT on the bank charges; and IRO-NBBS charges on May 31, 2016.
He urged the court to dismiss the applicant’s suit against UBA with substantial cost.
The matter has been adjourned until September 25, 2017.
Source: Premium Times
By Modupe Gbadeyanka
The chief executive of TeamApt Limited, Mr Dennis Ajalie, has called for a robust collaboration in the digital payments ecosystem, saying banks and fintech companies should not see themselves as rivals.
Mr Ajalie said the industry’s regulator, the Central Bank of Nigeria (CBN), has delineated what each entity should do and how they should function in creating a successful payment ecosystem that protects consumers and enables businesses, which he admitted to be complementary and not competitive.
Touching on the imperative of borderless transactions and the solutions for implementation concerning the framework, he said, “Borderless transactions have to happen because we’re becoming more interconnected by the day and by the minute.”
“We still have a lot of siloed implementations among key stakeholders and unless we recalibrate our systems, borderless remains beyond our reach and a mirage,” Mr Ajalie stated at the Committee of e-Business Industry Heads (CeBIH) conference in Lagos themed Payment System Vision 2030: Navigating Contemporary Issues in Driving Future Growth.
“There’s the fierce urgency of now that demands that we find solid ways to interconnect, and once we’re able to interconnect within ourselves, reconcile properly, especially on the local front, then we can present a single, unified front that will enable us to push transactions and receive transactions from outside.
“We cannot go forward without fixing these internal challenges,” he added at the event, where he was one of the panellists.
TeamApt, a subsidiary of Moniepoint Incorporated, facilitates payment processing across many industries while enabling reliable payments for banks and their customers while reducing operating costs.
Wrapping up his thoughts, the TeamApt boss reiterated the need for industry-wide collaborations in fighting the menace of fraud.
“If we are able to all share information and collaborate seamlessly, we’ll find out that it becomes disinteresting for these bad faith individuals to use the collective technology commonwealth that we have all built to commit nefarious activities.
“So, it goes back to collaboration among fintechs, the banks, NFIU, infrastructure providers, the telcos, and switches. We’ve all got to come together to say, enough is enough and that this present situation threatens all of us rather than just one of us,” he added.
By Modupe Gbadeyanka
An innovative web banking platform to provide customers with an additional digital channel to manage and carry out uninterrupted daily transactions on their phones, laptops and other devices has been introduced by Bankit Microfinance Bank (MFB).
The emerging small financial institution said it came up with this platform to break barriers and empower individuals and businesses to manage their finances with confidence.
With this, Bankit MFB is redefining convenience and security in banking, ensuring uninterrupted access to financial services, time-saving functionalities, efficiency, real-time account updates, 24/7 availability, and faster transactions.
“In today’s fast-paced digital age, connectivity is everything in banking, and for us, it’s all about improving customer experience with simple banking options and empowering our teeming customers to live their best lives.
“We are revolutionizing the Fintech landscape in Nigeria, and we have developed this solution to empower our customers to bank securely, anytime, anywhere, conveniently.
“We are committed to leveraging technology to enhance the banking experience for all our customers,” the chief executive of Bankit Africa, Mr Yen Choi, stated.
“Bankit’s web banking platform reaffirms one of the bank’s core values – Innovation and sets a new standard for accessibility and security in the banking industry.
“As part of our ongoing commitment to excellence, Bankit Africa will continue to evolve its offerings to meet and exceed the needs of its rising customer base.
“Some key features of this web banking platform include: a simple way to send money, buy airtime, and pay bills with no extra fees or hidden charges,” he added.
Bankit MFB is a licensed financial institution dedicated to providing innovative, customer-centric financial solutions to individuals, businesses, and communities in Nigeria, with a focus on simplicity, convenience, and security.
By Dipo Olowookere
Banking operations at the branches of most financial institutions in Nigeria will end earlier than expected today, Tuesday, December 31, 2024.
The majority of them have sent messages to their customers to inform them of this development.
Business Post sighted some of these notices sent by the banks to their customers via electronic mails (e-mails).
One of them from Guaranty Trust Bank (GTBank) Limited said transactions at its Lagos branches will close for the day and year by 3 pm while in other branches at 2 pm, encouraging customers to use its digital channels for their financial transactions.
“We would like to inform you that all our branches nationwide will close to customers early on Tuesday, December 31, 2024.
“During this period, we encourage you to take advantage of our digital channels for banking needs,” the notice read in parts.
On its part, United Bank for Africa (UBA) Plc said its branches would close for the day at 2 pm across the nation.
“As we prepare for the New Year celebration, our branches will close by 2 pm on Tuesday, December 31, 2024.
“While our branches take a break, our digital channels, the UBA Mobile Banking, Leo, *919# or internet banking are available 24/7 for all your banking needs.
“Your security is our priority. We will never ask for your BVN, card number, PIN or personal details. Suspect anything fraudulent? Call our Fraud Help Desk,” the message from the lender read.
As for Fidelity Bank Plc, it plans to stop banking services at its branches nationwide today by 2 pm to resume on Thursday, January 2, 2025.
“Please be informed that our branches will close at 2 pm on Tuesday, December 31, 2024, ahead of the New Year holiday.
“As always, our digital channels; Mobile Banking, USSD Bank (*770#), PoS, ATMs, Cards, and Ivy Chat, will be available 24/7 for all banking transactions.
“Please note that normal operations will resume at 8 am on Thursday, January 2, 2025,” the bank said in its message to customers.
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