Court Finds Access Bank Liable for Illegally Blocking Firm’s Account

 A Lagos State High Court has held that Access Bank illegally positioned a Post No Debit (PND) order at the debts of Blaid Construction Limited.

Consequently, the trial judge, Justice I.O. Harrison (Mrs) ordered the bank to pay the organisation 5 Million for breach of banker/client relationship and failure to give fee to cheques drawn at the organisation’s accounts.

In its announcement of declare, the corporation had requested the court to order the bank to pay it N500 million for denying it get right of entry to to its debts.

Harrison after reviewing the arguments of the events discovered that Access Bank became in breach of its banker-client relationship and that the company had suffered a loss due to this.

The plaintiff had claimed that it had a protracted status banker/customer dating with Access Bank and that by this relationship the bank become obligated to allow it unrestrained access to finances on accounts maintained with the financial institution and that the financial institution deliver fee to all cheques drawn at the bills.
It in addition argued that during September 2015, the financial institution in dereliction of its duty and with none order of courtroom, placed restrict on its debts, and deprived it of the opportunity to get entry to the price range inside the debts.

In its defence , the bank said it positioned a submit no debit alert at the plaintiff’s account in obedience to a letter from the Independent Corrupt Practices and other related offenses Commission.

However , the judge determined that the financial institution positioned a submit no debit on the accounts of Blaid Construction Limited, the primary plaintiff and that of Blaid Properties Limited (2nd plaintiff) even though ICPC asked for submit no debit to be placed best at the account of the second defendant.

Access Bank stated it blocked the bills of both agencies due to the fact each companies had best one BVN and that the signatories for the bills of the two separate groups had been the identical .

The judge rejected this argument describing it as untenable due to the fact the two businesses had been separate entities.

The choose in addition observed that ICPC lacked the strength to reserve banks to vicinity a put up no debit alert on financial institution money owed with out acquiring first an order of courtroom.

The judge held: ”The court docket consequently finds that the PND based totally on an insignificant letter without order of court docket become invalid and unlawful either in the accounts in particular noted (2d claimant) and the unilateral extension by the defendant to the 6 bills of the 1st claimant.”

Access Bank has reassured its shareholders that it's going to remain devoted to creating price for them in step with the bank’s group handling director, Herbert Wigwe

“Leveraging investments in virtual banking put up-merger, we've visible a boom in our retail banking business, as evidenced with the aid of the growth client signal-on, transaction quantity and price, and elevated adoption of our virtual channels. While the other half of of 2020 will stay difficult, virtual banking has grow to be more critical than ever within the pursuit of sustainable profits.

“We are assured that our purposeful approach, assorted model, and funding in virtual answers will ensure that we continue to be resilient and continue to help our stakeholders to recover and thrive. I need to thank our personnel for his or her dedication and extremely good work in those uncertain instances,” Wigwe said.

bank took several moves to proactively become aware of and solve mortgage overall performance issues which were accomplished in step with its lengthy-term method to danger management and keeping resilience and sustainability in its balance sheet. The resultant impact of this method became its NPL ratio of four.Four%, backed with write-offs.