CIMB told to explain frozen accounts or face boycott

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Problem caused by bank’s own processing error.

Two groups have slammed CIMB Bank Bhd (CIMB) for allegedly freezing 11,000 accounts without notifying the holders, especially so when the problem was caused by the bank’s own processing error.

The Malaysian Muslim Consumers Association (PPIM) and Agenda Reset Malaysia (ARM) warned that if the bank failed to address the problem in favour of the account holders, it would launch a campaign asking Malaysians to boycott the financial institution.

The problem arose after an error by CIMB left accounts frozen and their holders in debt due to “excess amounts” credited by the bank into their accounts.

At a joint press conference, ARM co-founder Ramalan Yunus told reporters that CIMB cannot just freeze their customers’ accounts without adequate notice.

He said if CIMB was not honest with its customers about what had actually happened, the NGOs would go on a drive to encourage all their customers to withdraw their money from the bank.

“We should boycott the bank and transfer all our money to other banks to teach it a lesson,” he said.

“If CIMB and the government keep mum on this issue, we will mobilise a civil disobedience movement.”

PPIM lead activist Nadzim Johan said CIMB needed to take responsibility for its errors.

“Whether due to the bank’s negligence or system failure, CIMB needs to take responsibility and right its wrongs.

FMT

“The central bank, too, needs to provide answers as it is the supervising body for all banks,” he said.

On Thursday, the central bank told FMT that CIMB was now trying to recover the excess amounts credited to their customers.

Bank Negara Malaysia said it had asked CIMB to ensure that whatever “recovery” measures it was taking would not burden the customers, especially those who were unaware that the excess money had flowed into their accounts.

It also said an investigation into this incident was currently in progress and that it would take appropriate supervisory and enforcement action (against CIMB) if warranted.

CIMB said it had discovered a “processing error”, which had led to a small number of customers receiving duplicate credits in their accounts. – FMT