Tribunal fines Stanbic IBTC Bank N120m over failed transaction

The Competition and Consumer Protection Tribunal (CCPT) sitting in Abuja, has fined Stanbic IBTC Bank the sum of N120 million over its failure to complete a transfer request for a customer.

The bank, under the leadership of Dr Demola Sogunle, was ordered to pay the fine into the Remita Account of the tribunal.

In a split decision of two to one, the tribunal, on Thursday, convicted the bank for contravening the provisions guiding banking operations and transactions.

CCPT found Stanbic IBTC Bank guilty of contravening Section 130(1)(a) of the FCCP Act, 2018 and Section 5(2)(8) and (9) of the Central Bank of Nigeria Regulation on Instant Interbank Electronic Transfers.

According to the tribunal, the fine was due to the failure of Stanbic IBTC to comply with the 10 minutes or, at most, one hour mandatory timeline for failed transfers to be reversed as provided by Sections 154 and 155 of the FCCP Act, 2018.

In its lead judgement delivered by Hon. Sola Salako-Ajulo, CCPT also ordered the bank to pay the claimant, Mr Clement Osuya, the sum of N1 million as cost of filing the action.

“The tribunal holds that, in as much as the defendant (Stanbic IBTC) failed to comply with the two instructions of the claimant to transfer the sums of N500,000 to another account in Access Bank, as no transfer took place at both times, defines that the defendant breached the banker-customer contractual relationship between the two parties,” Salako-Ajulo said.

The tribunal, however, refused to award the sum of N5 million as compensation to Osuya on the grounds that he failed to prove any injury he suffered as a result of the failure of the bank to ensure service delivery.

Another member of the tribunal, Hon. Ibrahim Yakubu, concurred with the verdict of Salako-Ajulo, while the presiding judge, Hon. Chuma Mbonu, disagreed and gave a minority judgment.

Mbonu, in his minority judgment, held that the tribunal lacked the jurisdiction to entertain the petition.

He said the tribunal has the powers of appellate jurisdiction, and not of original jurisdiction andconsequently struck out the suit for lacking in merit.

Osuya had filed a petition against the bank, challenging its failure, on two occasions, to transfer the sum of N500,000 from his Stanbic IBTC Bank account to his Access Bank account.

Osuya had further claimed that the money was meant for the payment of school fees of his children.

He told the tribunal that, on September 8, 2022, he filled out a form under NIS Instant Payment option for a transfer of the sum of N500,000 to his Access Bank account.

He held that, whereas the money, on both occasions left his Stanbic IBTC account as the account was debited, it never arrived his Access Bank account because it was not credited.

Osuya told the tribunal that reversal on the first transaction was done after 24 hours while that of the second transaction was reversed after 72 hours.

He further alleged that this neglect of duty of care by the bank caused him trauma, embarrassment and a dent in his reputation as he was forced to collect a loan.

Stanbic IBTC had through its counsel, Mr Marcel Osigbemhe, blamed the failure of the transaction on the third-party NIPS service.

Osigbemhe expressed his displeasure over the judgement, saying he wondered how his client could be convicted when there were clearly no charges brought against it.

Counsel to the claimant, Ms Deborah Solomon, however thanked the tribunal for what she said was a well-considered judgement.

(NAN)