BUSINESS: UBA Withholds Customer Property As Collateral Decades After Paying Off N100,000 Overdraft

The United Bank for Africa (UBA), an international bank based in Lagos, has refused to release the property documents of David Oloyede, a businessman, decades after he cleared a N100,000 overdraft facility he obtained in the 1990.

Speaking with FIJ on Thursday, Bode Oloyede, David’s son, said that his father applied for an overdraft from UBA in 1990. As part of the conditions for accessing the loan, the bank required collateral.

According to Bode, David deposited the deed of his landed property in Ibadan with UBA.

LOAN REPAID, BUT DEEDS ON HOLD

Bode told FIJ that the loan was fully repaid in 2001, but the bank has continued to withhold the property documents. “He paid back, but the bank has refused to release the title document he deposited as collateral for that facility,” he said.

FIJ obtained a 2003 statement of account from David that showed that the bank stopped deducting money for the loan he received.

David’s 2003 statement of account

FIJ also obtained a pre-action letter written to UBA by David’s lawyers. The letter stated that the overdraft facility expired on August 16, 1999, and that all outstanding indebtedness on the account had been cleared.

A pre-action letter written to UBA

Part of the letter reads, “The overdraft facility expired on 16th August, 1999, and no renewal was applied for thereafter. All outstanding indebtedness was fully liquidated on 21st December, 2001, when the sum of N35,488.02 (DR) was paid by direct cash lodgement of N40,000, leaving a credit balance of N2,374.50k, after deduction of N1,135.54k as interest and administrative charges.”

MULTIPLE VISITS, LETTERS, BUT NO OUTCOME

Bode told FIJ that he and his father have repeatedly visited UBA offices since the loan was cleared, but the bank has yet to return the deed. He added that several letters have also been written to the bank without any response.

“I have been to their office in Ibadan, but I have gotten no response. They said we should direct our letters to the head office, and we have done that. There is no response yet. We have written letters, but no response,” he said.

UBA YET TO RESPOND

On January 12, FIJ emailed UBA regarding the issue involving David Oloyede’s collateral. The bank sent an automated response and has not provided another since then.

Similarly, FIJ emailed UBA on Friday, and the bank sent another automated response.

 Source: FIJ