Man Sue UBA for Closing his Account, Get 6M Compensation
In a recent development, Mr. Azuka Onwuka, a customer, has lodged accusations against UBA Plc. He asserts that the bank not only illicitly closed his account without a valid court order but also went so far as to open an unauthorized account in his name in an apparent attempt to obscure the unlawful closure of his original account.
A Federal High Court located in Lagos has now issued a verdict against United Bank for Africa (UBA) Plc, holding them liable for wrongfully shutting down a customer’s account without proper legal authorization.
Mr. Onwuka, the affected customer, additionally claims that UBA Plc took the liberty of opening an unfamiliar account without his consent, purportedly as a means of camouflaging the illicit closure of his initial account.
Justice Yelim Bogoro, presiding over the case, handed down the judgment on July 10, 2023. The court case, denoted as FHC/L/CS/317/2023, concluded with Justice Bogoro describing the actions of UBA Plc as unconstitutional, illegal, and an abuse of their role as a financial institution.
The ruling judge has ordered UBA Plc to compensate Mr. Onwuka with a total sum of N6 million as both general damages and the costs associated with initiating the legal proceedings. Furthermore, the bank is mandated to issue an unreserved letter of apology to Mr. Onwuka, addressing the distress, anguish, and inconvenience he endured throughout the course of the legal proceedings.
Mr. Onwuka’s legal representation, led by lawyer Collins Akinade, framed the case under the purview of Sections 36, 37, and 44 of the 1999 Constitution, along with Article 14 of the African Charter on Human and Peoples’ Rights. The legal argument sought several remedies, including:
- Declaring that UBA Plc’s unilateral creation of an account, denoted as ‘1003284792,’ without Mr. Onwuka’s consent, constitutes a violation of his data privacy—a fundamental facet of the right to privacy as protected by Section 37 of the Constitution of the Federal Republic of Nigeria.
- Declaring that UBA Plc’s exploitation of its position to establish a second current account, leading to coercive debiting and extorting of funds from Mr. Onwuka, breaches his right to a fair hearing and property as enshrined in Sections 36 and 44(1) of the Constitution of the Federal Republic of Nigeria, as well as Article 14 of the African Charter on Human and Peoples’ Rights.
- Mandating UBA Plc to pay an immediate sum of N100 million as general and exemplary damages to Mr. Onwuka.
- Requiring UBA Plc to promptly disburse N5 million to Mr. Onwuka as the costs incurred due to the legal action.
- Demanding an unreserved written apology from UBA Plc to Mr. Onwuka for the distress, pain, and irritation he endured in the given circumstances.
In the outlined facts of the case presented by the court, Mr. Onwuka’s association with UBA Plc dates back to December 2003 when he initiated an account (account number 1003293912). This account, connected to his mobile phone number, served as a channel for electronic alerts and transaction records.
However, Mr. Onwuka was stunned when, after contemplating an offer from a foreign company, he learned about an unfamiliar account (account number 1003284792) bearing a debt of N48,882.05. The bank claimed it was his account, although he had neither authorized its creation nor opened it. Mr. Onwuka believed UBA Plc misused his personal information to orchestrate the account and the accompanying debit balance.
Despite his protests and an unsuccessful complaint to the Central Bank of Nigeria, Mr. Onwuka ended up paying the fabricated debt to resolve the stalemate. The process resulted in the cancellation of his negotiations with the foreign company.
Upon learning of these events, Mr. Onwuka’s solicitors demanded compensation and an apology from UBA Plc. The bank promised to investigate but failed to provide a response. Interestingly, UBA Plc subsequently credited Mr. Onwuka’s account with an amount of N51,818.32 without further communication.
Given the failure of UBA Plc to respond in accordance with the Fundamental Rights Enforcement Procedure Rules, the court proceeded with the case. It was established that UBA Plc was duly served with the originating documents more than two weeks prior to the court hearing, yet the bank failed to submit a counter affidavit within the stipulated time frame.
Based on this, Justice Yelim Bogoro proceeded to evaluate the case on its merits. The court held that UBA Plc, by opening an unsolicited account and disregarding the depositions made by Mr. Onwuka, had essentially admitted to the claims. Therefore, the court deemed the unchallenged facts in the affidavit as true, leading to a verdict in favor of Mr. Onwuka.
Justice Bogoro emphasized that UBA Plc’s actions constituted an infringement on Mr. Onwuka’s data privacy and property rights, which are protected by the 1999 Constitution. As a result, the court ruled in favor of Mr. Onwuka and issued a series of orders against UBA Plc:
- UBA Plc’s unilateral creation of account number 1003284792 without Mr. Onwuka’s consent was declared a violation of his data privacy, as guaranteed by Section 37 of the Constitution.
- UBA Plc’s imposition of a second current account and the ensuing coerced debiting of funds was deemed a breach of Mr. Onwuka’s right to a fair hearing and property, as defined by Sections 36 and 44(1) of the Constitution and Article 14 of the African Charter on Human and Peoples’ Rights.
- UBA Plc was directed to pay Mr. Onwuka N3 million as damages.
- UBA Plc was ordered to pay an additional N3 million to cover the costs of the legal action.
- UBA Plc was instructed to provide a written, unreserved apology to Mr. Onwuka for the distress, pain, and irritation he experienced in connection with the case.
