Thursday, March 30, 2023

650 CIMB account holders file class action suit against the Bank, demands RM650 million in compensation

News650 CIMB account holders file class action suit against the Bank, demands...

A group of 650 CIMB Bank account holders have filed a suit amounting to RM650 million against CIMB bank on a class-action basis. They are suing the bank for negligence over a processing error that left their accounts frozen and in debt.

According to a report by FMT, the claim includes costs to cover the risks faced by account holders. 

The group is seeking an overall recovery of RM1,007,702.91, which they claim was forcefully taken away from their accounts by the bank, following its debt recovery exercise.

In addition, the group has also demanded a minimum of RM1 million in compensation for each affected account holder.

The group had applied to the High Court to revoke the account freeze within 7 days after the decision, and are also seeking other general, exemplary, and aggravated damages with an interest of 5% per annum from the day the suit was filed and costs.

Lawyer Nazmi Mohd Zaini, who was representing the group of 650 CIMB account holders, said he would apply for a similar suit as the one filed last month by 12 account holders against CIMB to be tried together with the latest case.

In the latest suit, he said only 26 persons are named to represent the 650 account holders.

The primary purpose of the claim is to defend the rights of CIMB account holders who are affected due to money restrictions and a certain level of debt.

They claim the duplicitous credit and the forceful freeze and later, a debt recovery exercise by the bank was unlawful, as the credit error was due to the bank’s negligence.

“The bank’s action in debiting the money from the accounts is illegal and in breach of the regulations involving financial institutions in the country.”

“The bank’s move to debit money has violated the guidelines and rules set by Bank Negara Malaysia regarding disputes by financial institutions and depositors,” their statement of claim read.

Last week, CIMB had filed a counter-suit against 12 parties, seeking a total of RM1.39 million following the failure of consumers to notify the inadvertent credit entry in their accounts.

In a statement of defence by CIMB, the bank said it did not breach any contract with its account holders. It also said that it has the right to debit or withhold any account at their discretion, as it was part of the terms and conditions agreed by the customer.

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