Hi Nairalanders,pls ur candid advise is highly needed here.I took a loan sometime last year 4m diamond bank and we agreed on how d payment will be made. Since then,I've never defaulted on my credit card settlement. But I was shock 2 receive a call 4m my employer dat diamond bank asked me 2 pay all my outstanding d nxt day after I must have paid as usual 2 days back. Though,I've paid my outstandings as requested out of my own convinence. I want 2 take a legal action on d bank cos 2 me;dis is a breach of banking contract & tenet of confidentiality by d bank. Can somebody advice me on what 2 do. Thanks

You dont have a good case as far as u have paid the requested balance.u shld have denied them as at the time they asked

Lol, What would I have done when my boss has been involved. My anger z dat d bank z nt suppose 2 disclose any of my transaction with dem 2 my father,mother or husband moreorless my employer.Now dey've disclose my transaction 2 my employer,I want 2 take a legal action on dem. Datz my point & datz my basis so I still need ur candid advice. Thanks.

@OP: The credit agreement you had was between you and your bank, no third party is/was involved. You do have a case of breach of confidentiality, but I doubt if you will win knowing fully well how corrupt the Nigerian judiciary is.

@OP, yes for the bank to have informed 3rd Parties(without u doing anything wrong in respect of d contract in d 1st place, i suppose) u have a right of action in damages for breach of contract. If you intend to pursue this right against them, contact me on info@adenijikazeem.com by amailing me a full gist of d issue and we will proceed from there.

The way I understand Diamond Bank Credit card issuance and assessment, it appears you were given a credit limit based on your employment with that company, and not based on your sales/turnover/net worth. You must have filled your employers information in the application form and your salary. Also, did you read all the plenty terms & conditions at the bank of the application form when you applied for the Credit Card? It is because of cases like this that I learnt they stopped giving out the credit cards to bank staff in Nigeria

claremont:

@OP: The credit agreement you had was between you and your bank, no third party is/was involved. You do have a case of breach of confidentiality, but I doubt if you will win knowing fully well how corrupt the Nigerian judiciary is.

Spot on, couldn't have phrased it any better.
As long as you didn't default on any payment they had no right to contact your employee, afterall was your employer there when you took the loan.

Sue the bank, as you would have been sued if you had defaulted. What you need do, examines all the contract papers signed; especially the terms and conditions of the contracts to be sure there was no clause. Get your lawyer to examine same and interpret any clause that seems confusing. You lawyer should be able to advise you on the next line of action after examining your contract documents.

The unprofessional act of the bank might endanger the trust your boss had on you [if any]. It is suable.

Just forget about them because I don't think you would win this one.

akoraye:

You dont have a good case as far as u have paid the requested balance.u shld have denied them as at the time they asked

It is not a case of paying the balance or defaulting in the paying the balance. The contract was supposed to be between the OP and the bank, but the bank breached the contract by disclosing the deal to a 3rd party that was apparently not included the contract.

That alone could harm the relationship the Op has with the 3rd party [being his boss]. It is very unprofessional of the bank.

The bank just saved you your job. Mr Boss is already wondering why you stop asking for IOU.

i believe u shud sue them, u hv a case, naija is meesed up

Most of them are Yoruba, history CRK graduate bankers, there is duty of secrecy in banking law,  which they had violated, sue them . it will serve as deterrent to others

Just forget about them because I don't think you would win this one.
@Osama
That is the problem we keep having in this Country.We compromise all the time, instead of fighting for justice in the most appropriate manner.

the first question you should ask yourself is "what do i want from bringing an action against the bank"? if you want a financial benefit you are unlikely to get any if however, your intention is to set a legal precedent and you have the funds, then, you have a personal cause of action.

Go to the bank and tell them how bad you feel.

Most loans that are tied to your emoluments or salary being paid into your account does not enjoy confidentiality.  The bank relied on the contract between you and your employer before granting you the facility.  Most times your employers demand for your status with the bank and they are entitled to the information for transparency sake.

Advice: live your life like a golden fish in an aquarium

if i understood your post you said you were two days overdue. if that's the case then you were the first to default.

Seek a legal advice from your lawyer. He knows much better

call me on 08053779782. you should be prepared to bring all the documents, tellers and proof of all payments. secondly did u authorise them to contact ur boss in case of default? well if it is a salary loan. if the answer is no then call me asap.

Did you read all the fine print disclosures on the loan requirements that the lender does not reserve the rights to ask for full recourse at anytime without any reservation?

Lawyers will always advice you to go to court, After all they must eat. I know that banks normally ask for pledge that your firm pays your terminal benefit to the bank, if you default. Beside are sure that your boss is not your guarantor.

If thats ur salary account.
then ur employer is not completely out of it.
Remember you cannot change ur salary account with ur employer to another bank unless u get clearance from the bank. This isobtainable in most organized institutions who dont want sharp practices like employees geting loan based on their pay point and immediately change pay point after few month without paying off their loan

ok.

so what damage have you suffered?

your reputation with your oga, in a work you are still employed?

or which other one?

personally, if you domiciled your salary account with the bank for the credit facility and you default, they will make a call on the company. . . . . . . .


i understand that you are feeling aggrieved and probably cool with yourself for "knowing your right" but do not further belabour an already terribly overloaded judicial system with such a ridiculous lawsuit.

yes, ridiculous. this is not a litigious society, and we have nothing to gain by making it so. besides, if you need a lawyer who will prosecute the matter for you, pls contact me. i will represent you admirably nonetheless, for my fees.

Take legal action if you care but na wa o you took loan without your husband's consent.

Did u use ur Boss as ur guarantor before collecting the loan from Diamond Bank? If ur answer is "NO". Then u have every right to press charges against them. Get a good lawyer, agree on the sharing formular and leave the rest to him. Please keep us informed as to developments. I love cases like this.

if its credit card facility u collected,am afraid my brother u dont hv any case of breach of confidentiality cos the only guarantee for such loan is ur source of income which in this case is ur place of work.card loan is always a triparte agreement though u did nt carry ur office along in d 1st instance,except u re telling us tht ur salary is nt d means of repayment.
Dont even bother 2 ask a lawyer,cos he WILLdefinately advise u to seek redress in court(man must wack)

remember d old saying;ONLY FOOLS MAKE LAWYER RICH

Under Banking law governing Bankers-Customers Relationship, A bank owes its Customers duty of secrecy, even where the accounts has been closed. However, in the locus clasiccus case of Tournier Vs National Provincial Bank (1923) It was concluded that The Bankers' duty of secrecy is not absolute but qualified. In order words, there are instances whereby a Bank can justifiably disclose information about customers' account to third parties and these were identified to be only four circumstances

(a) By compulsion of Law: For Instance, the provisions of Anti-money laundering Prohibition Act requires Banks to make a report of Lodgement of fund in essence of N1mill and N5mill to individual and corporate organisation respectively to NFIU of EFCC and to make further reports of any transaction considered suspicious by the Bank as well as FOREX transaction of US$10,000.00 or its equivalent.

(b) By Customer's Consent: Where Customer expressly authorized the bank to provide information about his account to third parties. E.g Personal Representatives

(c) In The Public Interest: Where it comes to the notice of the bank that the account is been used to work against public interest. E.g Finance of Terrorism, Support for enemy country during war, perpetration of fraud, embezzlement of public fund etc.

(d) In the Bank's Interest: If a bank, for instance needs to recover a loan, it might need to divulge information about the customer's account to its solicitors to be able to recover its advances to the Customer.

Any disclosure made by the bank outside of the aforementioned puts the Bank at a risk of paying substantial damages to the Customer, depending on the level of reputational damages involved.

Now to your case, could it be said that the disclosure made by Diamond Bank was under any of the afore mentioned? It depends on the facts and the documents available for examination.

To the best of my knowledge, I am not aware of any law that mandates a Bank to disclose your transactions to your employer, hence, it would not have been done under compulsion of law!

My fear is that you could have consented to the disclosure without your awareness as Loan forms are designed in such a manner to strip customers off their common law rights and since experience has shown that borrowers hardly took their time to study clauses on loan form for desperation, they tend to ignorantly sign off their rights. This means you need to review your loan agreement to be sure you have not expressly authorise the bank to contact your employer.

I doubt if the the disclosure could be justified by public interest since we have no evidence that you are a boko-haram or al-qaedia member or that you account is used to siphone public fund.

The bank might wish to edge on 'The Bank's interest'. They can only do this if they have made failed attempts to recover the fund and then have to resort to other measures when they discovered that the money was not likely to come back. Afterall, sanusi published the name of debtors of troubled Banks in the dailies.

So, examine these points and establish your position. cheers

When you initially applied for the loan, did they give you a Form for you employer to fill and sign (confirming you are their staff and the status of your emoluments)?

I don't know if you'll win or not (hopefully in your lifetime) but since you've paid just forget it except you have a lawyer friend you want to keep busy at your expense.

Under Banking law governing Bankers-Customers Relationship, A bank owes its Customers duty of secrecy, even where the accounts has been closed. However, in the locus clasiccus case of Tournier Vs National Provincial Bank (1923) It was concluded that The Bankers' duty of secrecy is not absolute but qualified. In order words, there are instances whereby a Bank can justifiably disclose information about customers' account to third parties and these were identified to be only four circumstances

(a) By compulsion of Law: For Instance, the provisions of Anti-money laundering Prohibition Act requires Banks to make a report of Lodgement of fund in essence of N1mill and N5mill to individual and corporate organisation respectively to NFIU of EFCC and to make further reports of any transaction considered suspicious by the Bank as well as FOREX transaction of US$10,000.00 or its equivalent.

(b) By Customer's Consent: Where Customer expressly authorized the bank to provide information about his account to third parties. E.g Personal Representatives

(c) In The Public Interest: Where it comes to the notice of the bank that the account is been used to work against public interest. E.g Finance of Terrorism, Support for enemy country during war, perpetration of fraud, embezzlement of public fund etc.

(d) In the Bank's Interest: If a bank, for instance needs to recover a loan, it might need to divulge information about the customer's account to its solicitors to be able to recover its advances to the Customer.

Any disclosure made by the bank outside of the aforementioned puts the Bank at a risk of paying substantial damages to the Customer, depending on the level of reputational damages involved.

Now to your case, could it be said that the disclosure made by Diamond Bank was under any of the afore mentioned? It depends on the facts and the documents available for examination.

To the best of my knowledge, I am not aware of any law that mandates a Bank to disclose your transactions to your employer, hence, it would not have been done under compulsion of law!

My fear is that you could have consented to the disclosure without your awareness as Loan forms are designed in such a manner to strip customers off their common law rights and since experience has shown that borrowers hardly took their time to study clauses on loan form for desperation, they tend to ignorantly sign off their rights. This means you need to review your loan agreement to be sure you have not expressly authorise the bank to contact your employer.

I doubt if the the disclosure could be justified by public interest since we have no evidence that you are a boko-haram or al-qaedia member or that you account is used to siphone public fund.

The bank might wish to edge on 'The Bank's interest'. They can only do this if they have made failed attempts to recover the fund and then have to resort to other measures when they discovered that the money was not likely to come back. Afterall, sanusi published the name of debtors of troubled Banks in the dailies.

So, examine these points and establish your position. cheers

OP there is a saying 'who ever stops you from a fight just stopped you from victory'. give it a shot, it will help the bank to improve their service.

also the over-zealous staff that made the call may end up in the labour market. two sides huh?

you took the loan through consent of your employer just chill when next you take loan from the bank never fail to fund your account for repayment or better still whichever of the banks' loan product that you wish to take check very well to avoid any form of embarassment later on