Master baker threatens to sue GTB over alleged restriction on bank account

An Abuja-based master baker, Miss Faith Iwu, has threatened to sue the Guaranty Trust Bank (GTB) if alleged restriction placed on her account is not lifted.

Iwu’s lawyer, Mojisola George, gave the warning in a letter addressed to the GTB’s secretary dated Sept. 12 and received by the bank on Sept 19.

A copy of the certified true copy of the letter was made available to newsmen on Monday in Abuja.

The lawyer described the bank’s action as “unlawful and in flagrant” disregard for the principles of contractual banking obligations.

According to her, while she understands that the restriction was purportedly linked to a civil transaction involving a third party, GTB lacks the legal or moral right to take such a decision without an express court order or lawful justification.

George, who said the restriction had caused her client significant financial hardship and embarrassment as she was unable to honour her obligations to her suppliers and vendors, demanded immediate and unconditional lifting of the restriction.

The legal practitioner said Iwu opened the account with the bank in 2016.

“Sometime in August, our client observed with utter dismay that she is unable to withdraw from the ATM machines around her.

“She assumed that it was a general network downtime that will be subsequently resolved but later realised that inflows were coming in but she couldn’t send money or use the GT World App.

“Upon a visit to the branch at Kubwa Phase 4, she was told that her account has been restricted. She wasn’t given any explanation, or lawful basis for such restriction.

‘This action has caused our client significant financial hardship and embarrassment, which we deem to be a blatant violation of her rights as a customer of your bank.

“Let it be unequivocally stated that this is a purely civil matter with no criminal element whatsoever and as such your bank has no legal or moral authority to restrict our client’s account without an express court order or other lawful justification,” George said.

According to her, the restriction on her (Iwu’s) account constitutes a gross breach of the bank’s fiduciary duty, a violation of her rights to access her funds, and a serious breach of contract.

The lawyer threatened that failure of the bank to do the needful within 48 hours of receiving the letter might result in legal action.

“Legal action for damages arising from the financial losses, reputational damage and emotional distress will be instituted.

“Formal complaints will be lodged at the Central Bank of Nigeria (CBN) for a thorough investigation into the bank’s conduct.

“And legal redress seeking damages for breach of contract, unlawful restriction and other consequential losses suffered by our client will be pursued,” she said.

 
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