The bank will also pay N3m fine.
Union Bank has been ordered to repay a N34 million illegal deduction from a customer’s account. This directive was given by a Lagos High Court presided over by Justice Morenike Obadina.
The court based the ruling on a revelation that Union Bank failed to support claims that the N34m deduction were remitted to the Central Bank of Nigeria for “series of foreign transaction between the customer and foreign partners.”
The customer identified as Prince Nwokocha Ezikpe and his company- Felimex Nigeria Limited, instituted the court action against the bank when the Central Bank denied receiving the remittances.
Union Bank claimed the deductions by installment were for goods imported by Felimex Merchantile Nigeria Limited- one of the two companies that transformed into Felimex Nigeria Limited- the other is Sobatex International- but the financial institution couldn’t provide proof to the customer and also in court.
The court ordered the bank to refund the illegal deduction and also awarded N3m in favour of the customer for breach of contract.
The Central Bank of Nigeria had accused commercial banks of defrauding through various illegal deductions, many of which was reversed at the instance of the Central Bank.