Loan fraud: Court slams Ecobank with N10m fine for ‘fraudulent use of Ebonyi business man’s BVN’

A branch of Ecobank in Abakakili, has been fined to the tune of N10 million as collateral damages alongside five others for illegally using a BVN belonging to Ebonyi businessman, who is based in Delta State, Mr Nzubechi Okoro for obtaining loan without his consent.

A State High Court in Abakaliki arrived at this after considering the merit of lawsuit brought before it by the applicant against Eco Bank PLC, the Executive Chairman, Maize Growers, Processors & Marketers Association of Nigeria (MAGPAMAN), Ebonyi State Office, Mr. Ebere Oji Odii, the Ohaozara LGA Coordinator of MAGPAMAN, Mrs. Patience Nwabueze, and the Maize Growers, Processors & Marketers Association of Nigeria.

The Eco Bank (1st defendant), Odii (2nd defendant), Nwabueze (3rd defendant) and MAGPAMAN (4th defendant) were dragged to court by Okoro after his Bank Verification Number (BVN) was blacklisted by the Central Bank of Nigeria (CBN) over a loan that he purportedly took from the Anchor Borrowers’ Scheme of the Federal Government.

The plaintiff had averred that his bank details and BVN were fraudulently used by the other three defendants in connivance with Eco Bank to obtain a loan facility from the bank after opening an account in the Ezza Road, Abakaliki branch.

Ruling on Suit No. HAB/169/2022, on June 28, 2024, Justice Chris Eze held that the 1st and 2nd defendants (Eco Bank and Odii) in their statements of defence never stated that the plaintiff was a farmer as to be a beneficiary to the Anchor Borrowers’ Fund, instead, they had averred that “they were not in a position to deny or admit paragraph 1 of the statement of claim where the plaintiff categorically deposed that he is a businessman dealing on musical and electronic equipment/devices.”

The Judge also said that the plaintiff proved that he never withdrew any money from the said account as against the 1st and 2nd defendants’ claim that he withdrew N555,531.82.

“The 1st and 2nd defendants left the evidence of the plaintiff completely unchallenged. All these are fatal to the case defendants. This Honourable Court then holds that the plaintiff proved his case on balance of probabilities or preponderance of evidence as required by law.

“The plaintiff proved his case against the defendants, 1st and 2nd defendants having failed to rebut the evidence of the PW1 and the 3rd and 4th defendants having failed, refused and or neglected to challenge the pleadings and evidence of the plaintiff despite being served with the plaintiff’s originating processes and hearing notices at all material times,” he stated.

Accordingly, the Honourable Court declared: “That defendants shall jointly and severally pay to the plaintiff, the sum of Ten Million Naira (N10,000,00.00) only as general damages for the financial loss, embarrassment, emotional and psychological trauma and pain suffered by the plaintiff following the blacklisting of his (the plaintiff) Bank Verification Number (BVN) by the CBN as a result of the unlawful and fraudulent use of his bank details and BVN by the 2nd – 4th defendants to obtain a loan facility from the 1st defendant and connivance of all the defendants to carry out their unlawful acts.”