If you enter any Union Bank in Nigeria, one of the biggest products they gladly paint on every inch where your eyes can catch is the ease with which you can take a loan to do just anything.
If the experience of one of their customers is anything to go by, we owe you (as an individual or group) a duty to alert you to look other ways. A loan with Union Bank is a bank draft to hell.
Coronation Real Estate Development Limited, an Abuja-based real estate development company, took a loan of N1.315 billion in April 2008 from the bank. The loan was meant to build a shopping and office complex at Plot 3774 Cadastral zone, off Jimmy Carter road, Asokoro, Abuja.
To secure the loan, an agreement was reached between the bank and the real estate company to open an account with Union Bank. Part of the agreement with the loan to be repaid through the sale of forms and deposits for rentals, leases of the shops and offices.
The bank which still operates with locomotive technology and style according to court documents filed in the Federal High Court in Lagos State by the aggrieved customer, the bank was to give out the loan in 11 installments.
Against the agreement, Union Bank decided to give only N1.217 billion, which was given slowly, making the price of construction materials to rise and causing the company to run at great loss.
In October 2012, the company approached the bank to restructure the loan given, to enable them complete the building.
According to Coronation Real Estate Development Limited, they have since repaid back the entire loan, but Union Bank continued to defraud them, by charging unnecessary high amount of money from their account, running into millions.
The company also claimed before the court that despite imposing arbitrary charges, excessive charges, penal charges and fees on the company’s facility account, assessment carried out on their account and property valuation revealed that they incurred loss of N4.1 billion, due to incomplete disbursement of the loans, delay in disbursement as well as excess charges on the loan, which has caused them to run at economic loss.
They prayed to the court in their second statement of claim to give judgment and cause Union Bank to pay them the sum of N4.1 billion for their loss as compensation.