12 sue CIMB Bank for frozen accounts, processing error

 

The account holders claim CIMB had frozen their accounts and they were unable to utilise their funds to pay bills.

GEORGE TOWN: Twelve account holders are suing CIMB Bank and CIMB Islamic Bank after a processing error left their accounts frozen and in debt.

Last month, the bank claimed a processing error related to a specific third-party financial remittance service had led to transfers made to customers being accidentally credited twice.

CIMB had then said it was trying to recover the duplicate sums.

In the statement of claim filed at the High Court in Kuala Lumpur yesterday, the twelve suing the bank said freezing their accounts was a contractual violation.

They claimed that the third party processing error remained the fault of the bank, not the customers.

They are now asking the High Court to declare the freezing of the accounts affected by the processing error as “invalid and unenforceable” as it went against its terms and conditions.

They also want the court to declare that the action to freeze accounts had unfairly prejudiced customers and neglected and breached its duty of care of its customers.

Lawyer Nazmi Mohd Zaini.

They also want the court to immediately order the bank to unfreeze their accounts.

“We also pray that the court gives an order for monetary damages to the plaintiffs due to the breach of contract and breach of the defendants’ duty of care,” the summons read.

They also demanded exemplary damages and reimbursement of fees for their solicitors; costs of RM10,800, cost of action and further relief deemed appropriate by the court.

Those suing are: Ahmad Sharil Nor Rasit, 42, Azwani Aziz, 39, Nor Amirah Suria, 26, Nor Sazliana Sazali, 31, Mukmin Mohd Ibrahim, 34, Siti Roziana Abdullah, 26, Muhamad Haris Fadhillah Yaacob, 28, Muhammad Azizi Aziz, 34, Muhammad Azizul Aziz, 40, and three companies — Ai Smart Perfect Services, Ai Smart PS Trade and Harmonian Altra Trading.

CIMB Bank Berhad and CIMB Islamic Bank Berhad are named as defendants in the suit.

Lawyer Nazmi Mohd Zaini, when contacted, confirmed that the suit was filed yesterday at the instruction of his clients.

He said a class action suit was highly likely as “hundreds more” have approached him to initiate a similar suit.

He said earlier, a letter of demand was sent by the twelve in the suit to CIMB, demanding that their accounts be unfrozen, an apology and a RM1 million compensation each for the hardship endured as a result of being unable to use their accounts.

“My clients’ accounts remain frozen. They are now being harassed by debt collectors on behalf of CIMB to recover the debt amounts.

“My clients are unable to withdraw their January and February salaries and are unable to service their hire purchase loans until today,” he told FMT.

FMT has contacted the bank and its lawyer, Jeyanthini Kannaperan, for comment.

Recently, FMT reported the grievances of CIMB customers whose account balance had a negative value and their accounts were frozen. The disgruntled customers had lodged reports with the police and Bank Negara Malaysia.

The bank had said the problem involved “a limited number of customers that undertook international to local transfers”, and pledged to offer a fair and managed resolution to affected customers.

The central bank had ordered CIMB to ensure that whatever “recovery” measures it was taking would not burden the customers, especially those unaware that the excess money had flowed into their accounts.

Earlier, Bloomberg reported that CIMB Group Holdings Bhd had incurred a credit loss of RM280.9 million in 2021 due to a processing error that saw excess funds deposited into thousands of customer accounts.

CIMB reported net income of RM4.3 billion in 2021, its strongest annual figure since 2019, according to data compiled by Bloomberg. - FMT