June 11, 2009

Nwankwo drags UBA, Spring Bank to CBN

By Enyim Enyim

ONITSHA—A businessman in Onitsha, Chief Mike Nwankwo has dragged the managements of the United Bank for Africa Plc and Spring Bank Plc before the Central Bank of Nigeria (CBN) and the Ethics and Professionalism Sub-committee of the Bankers Committee of the Chartered Institute of Bankers of Nigeria (CIBN) over alleged illegal charges/deductions against his bank accounts with them.

In a petition to the CBN Governor, dated May  22, entitled, “Complaint of illegal charges/deductions by UBA Plc and Spring Bank Plc against  Goodness Investment Nigeria Limited Accounts Nos.  04070030000345 with UBA, No. 49 Uga Street, Onitsha branch and 0291001001857 with Spring Bank No. 39 Old Market Road, Onitsha branch”, Nwankwo, through his counsel, Mr Anthony Ogbonna urged the CBN Governor to intervene and rescue a number of businesses being stifled by  some commercial banks through alleged frivolous and illegal bank charges.

In an earlier petition to the chairman of the Bankers Committee of the CIBN, Nwankwo noted that on September 26, 2007, UBA offered him a  cash collaterised facility to the tune of  N10.4 million, following an application to that effect.

According to him, on November 15, 2007, he  applied for another  loan facility of N9 million and on  November 13, 2007, UBA made a second offer of N9m on  a short term loan basis.

On February 28, 2008, he further stated, UBA made  a third offer of N8.5 million for a short term loan of  90-day term, adding that based on the agreement, he was  finally given a facility of N8.5m only, which had been  rolled over for about five times and no document on same was  given to him while the bank had continuously deducted and  calculated its high interest rate which is against CBN  guidelines on loan facilities to its customers.