Yes, the law permits a banker to join together the several accounts of the customer and treat them as same. However, where there is an agreement that the account be kept separate, the banker would need to issue to the customer reasonable notice of intention to join the customer’s account together. Angyu V. Malami (1992) 9 NWLR (pt. 264) 242; UBA PLC v Alims (Nig.) Ltd (2008) All FWLR (Pt. 435) 1750-1751 para C
No, the bank has no right to combine a customer’s account where from the nature of the account, the monies in the account are not for the benefit of the customer. However, the burden is on the customer to prove that the bank knows that the money is for the benefit of another person. Union Bank of Australia V. Murrey Aynsley (1989) AC 693
Yes, the creditor YZ Bank is at liberty to offset the debt of MR. X with MR. X’s other account standing in credit. British & French Bank V. Owodunni Trading Co. (1956) NSCC 3; Angyu V. Malami (1992) 9 NWLR (pt. 264) 242
Where a customer demands that his account be closed. The motive and disposition of the customer in making the demand is irrelevant. Yes, if the demand is to close the account, made by the customer, and the account was closed accordingly, that is. But it likely that bank would demand that he makes that Demand formally – that is, in writing. Bank of Credit & Commerce Int’l (Nig.) V. Stephens Industries Ltd. (1992) 3 NWLR (pt. 232) 772
When a customer becomes of unsound mind or is so mentally unstable or crazy so that he cannot direct his own affairs in the usual manner, then the bank can suspend/end the contract with such customer as if the customer was dead. The court may also appoint a person who will manage the property of the customer who is mentally unstable. Yonge V. Toynbee (1910) 1 KB 215.
A customer’s account can be closed in any of the following ways:
a) Death of the customer.
b) Where the customer is of unsound mind.
c) Mutual agreement.
d) Proper notice by one party to another.
e) Bankruptcy or winding up of either party. Bank of Credit & Commerce Int’l (Nig.) V. Stephen Industries Ltd. (1992) 3 NWLR (pt. 232) 72
There are no legal limits on the number of accounts a customer can maintain with his bank. As such, a customer can operate any number of accounts with same bank as agreed with the bank. Angyu V. Malami (1992) 9 NWLR (Pt. 264) 242
Yes, even though the bank has the right to offset the loan or the debt of a customer having two account deducting the account of the customer in credit with the one in debit, this right will not be available where there is an agreement between the creditor and the debtor that the two account be kept separate except with the consent of the customer. Bradford Old Bank V. Sutcliffe (1918) 2 KB 833
The debt and even the rights and benefits of the customer of a bank who dies do not cease. It continues for or against the estate of the deceased or his personal representative or his next of kin. Bank of America V. Kujore (1978) CCHCJ 1279 at 1282
Where a bank collapses, the relationship between the bank and the customer comes to an end. However, all banks are mandatorily made to re-insure the deposit money of its customers with the Nigeria Deposit Insurance Corporation (NDIC). Consequently, the Nigeria Deposit Insurance Corporation (NDIC) will become responsible for the settlement of bank customer’s claim in accordance with the provisions of the law. Section 20 of Nigeria Deposit Insurance Corporation Act (Cap N102 LFN 2004).