Where the bank has honestly paid over the money to the customer in the course of its normal obligation to pay the customer’s cheque, an action for money had and received against the bank will not succeed. AG Federation V. Alege & Barclays Bank of Nigeria (1980) NCLR 311
Yes, a paying bank can maintain an action for money had and received against the collecting bank. For instance, if a certain sum of money was fraudulently withdrawn from ‘A’s account with ‘ZZZ’ bank by ‘B’ a customer of ‘YYY’ bank and ‘YYY’ proceeds to pay it customer ‘B’ the sum of money fraudulently obtained, ‘ZZZ’ bank can maintain an action for money had and received against ‘YYY’ bank. Standard Bank of Nigeria V. Bank of America (19760 7 CCHCY 1785
Yes, a bank will be liable for money had and received against the true owners of such money where the bank pays the money to another person even though the bank is aware such other person isn’t the true owner of the money. However, where the bank is not aware and he pays the money to another person innocently without notice of who the true owner is, the bank will not be liable in action for money had and received. UBA V. Savannah Bank of Nig. (1979) 10-12 CCHCJ 255; AG Federation V. Alege& Barclays Bank of Nig. (1980) NCLR 311.
You can sue the bank to recover your money for ‘money had and received’. Where you have successfully countermanded the payment within a reasonable time, yet the bank proceeds to pay the countermanded sum to a third party, the bank becomes liable for the sum paid. An action for money had and received is founded on the doctrine of unjust enrichment and restitution. It is based on the principle that a person who is unjustly in possession of money that does not belong to him should not be allowed to retain it. Gibson V. Minet (1824) 130 ER 206
Yes, where a customer is not satisfied with the activities of the bank in the operation of his account, he can lay a complaint to the Central Bank of Nigeria. Central Bank of Nigeria circular to all Banks, Discount Houses and other Financial instructions; Times Bar for resolution of customers’ complaint 2015
The time limit within which a complaint can be lodged within the Central Bank of Nigeria is six (6) years effective from the date of transaction. However, this limitation does not apply to fraud cases, complaints already lodged with the financial institutions and the Central Bank of Nigeria. Central Bank of Nigeria circular to all Banks, Discount Houses and other Financial instructions; Times Bar for resolution of customers’ complaint 2015
Firstly, you must satisfy the court that the bank is in possession of a particular sum of money that belongs to you. Secondly, where the bank pays the money into its customer’s account, you must join the customer in the action against the bank. The payment of money to the bank must have arisen as a result of a fundamental mistake of fact. WEMA Bank Ltd. V. Apena (1993) 2 FRN 244; Standard Bank of Nig. V. AG Federation (1971) 2 NCLR 181
Yes, the bank can proceed to recover the money in an action for money had and received. Oduwobi V. Barclays Bank DCO (1962) NSCC 98
To indicate whether a bank is in debit or credit, the usual banking practice is to write ‘CR’ or ‘DR’ after the figures in the account. FBN Ltd. V. Moba Farms Ltd. (2005) 8 NWLR (Pt. 928) 492 at 519