Bank to pay N1.1m for illegal closure of account

A Lagos High Court has ordered Diamond Bank Plc, to pay the sum of N1.1 million to one of its customers, Chizeck Chemical Company Limited, for unlawfully closing its account.

Justice Adenike Coker gave the order in a judgment delivered in a suit filed by the company.

The chemical-producing company had approached the court, seeking a declaration that it was not indebted to the bank in the sum of N30, 314. 30, or any sum at all, as alleged by the bank.

The company also sought an order for the payment of N6 million, as general damages for the serious economic damage caused it and the cost of prosecuting the suit.

The plaintiff stated that sometimes in 2008, as a customer to Diamond Bank, it approached Union Bank for a credit facility of N10 million to enhance its business activities, but a facility of N5 million was granted instead.

The firm added that it was surprised that the application to utilise the balance of the credit facility from Union Bank was queried on the ground of alleged indebtedness to Diamond Bank, allegedly from fees/charges and that the account was said to have gone dormant.

The plaintiff, through its Managing Director, Uzoma Ajoku, informed the court that when he requested for the company’s bank statements, he was denied.

He later discovered that Diamond Bank had passed the false information to its credit bureau.

Diamond Bank did not file any defence, although a counsel, Mr. Ohiembor, who informed the court that he was yet to regularise his position, represented it.