Customer accuses Standard Chartered Bank of withholding funds after account closure

A Nigerian customer, Charles Igbinidu, has accused Standard Chartered Bank Nigeria Limited of delaying the release of his funds following the closure of his account, alleging that disputed charges and questions over his signature have stalled the transfer of his money.

Igbinidu, a Nigerian resident in the United States, said the bank informed him through an email that his account had been closed and advised him to contact its customer service department to arrange the release of any outstanding balance.

According to him, he subsequently requested that the remaining funds in the account be transferred to his account with United Bank for Africa (UBA), providing the necessary banking details to facilitate the transaction.

In response, the bank, through an email signed by Peter Okuyelu, a Client Experience Analyst, requested that he complete and return a transfer form.

The bank reportedly assured him that the outstanding balance would be credited to his nominated account upon receipt of the required documentation. It also clarified that transfers could be made to conventional commercial banks but not to fintech institutions.

Igbinidu said he complied with the directive by submitting the completed form, his UBA account details and a copy of the data page of his international passport.

However, he alleged that the process was subsequently delayed when another Client Experience Analyst, Linda Ejiogu, contacted him and requested that he initiate the closure of his US dollar account.

The bank official reportedly explained that the account had an outstanding debit balance of $20.49, representing an annual debit card fee that needed to be settled before the process could proceed.

Disputing the charge, Igbinidu said he had neither used nor held a debit card linked to the account for almost 10 years.

He maintained that the charge was unjustified, adding that Ejiogu subsequently confirmed that the issue had been resolved.

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Despite the clarification, the customer said the expected transfer was not effected, forcing him to contact the bank again about a month later to demand an explanation for the continued delay.

In its response, Okuyelu reportedly informed him that his transfer request had been rejected because of an alleged irregularity in the signature on the submitted documents.

The bank subsequently asked him to sign the relevant documents in a manner consistent with the specimen signature in its records.

He was also requested to make his registered telephone number available for verification as part of the process.

Igbinidu said he complied with the additional requirements but had yet to receive his money.

Raising further concerns about the handling of his account, Igbinidu claimed that an internal source informed him that the account had been classified as dormant.

He alleged that some individuals within the bank had even assumed that he was deceased, a development he said could have contributed to the difficulties surrounding the recovery of his funds.

The customer, however, insisted that he was alive and available to complete any legitimate verification requirements necessary to facilitate the release of his money.

He expressed frustration that, despite responding to the bank’s requests and providing the documents demanded at different stages, the transfer remained outstanding.

Beyond his personal experience, Igbinidu alleged that other former customers of Standard Chartered Bank were also experiencing difficulties recovering balances left in accounts closed by the financial institution.

He therefore urged affected customers not to abandon their claims or leave their money with the bank because of what he described as unnecessary administrative obstacles.

He advised them to continue engaging the bank’s customer service department and insist on the release of legitimate outstanding balances.

The allegations raise questions about the procedures adopted by banks in handling customers’ funds following account closures, particularly where account holders are resident outside Nigeria and must rely on electronic communication to complete verification processes.

However, the customer’s allegations, including claims of irregular charges, signature-related delays and the classification of his account as dormant, have not been independently verified.

Standard Chartered Bank’s response to the specific allegations was not included in the account of the incident.