Bank's Unauthorized Withdrawal of 35 Million Yuan, A Shocking Case! The Court Ruled That the Bank Must Return the Money
A bank bypassed the judicial process and unilaterally deducted a borrower's deposit account, sparking social concern recently.
In Jiangsu Province, a customer deposited 35 million yuan in a bank, but after one month, the bank suddenly deducted the money without notice. Six months later, the customer discovered the truth. The bank had found that the borrower had related assets and directly deducted their deposit to settle the debt, which is worthy of attention and caution.
In the end, the court ruled that the defendant Jiangsu Agricultural Bank should return 92,369.49 yuan to the plaintiff Kang, plus compensation for interest losses of 7,630 yuan, totaling 99,999.49 yuan within ten days after the judgment takes effect.
35 Million Yuan Deposit "Vanishes"
The case originated from Kang's guarantor for someone else's loan.
In 2013, Ding borrowed 20 million yuan from Jiangsu Agricultural Bank with a one-year term. Four people, including Kang, provided guarantees for the loan.
However, due to Ding's inability to repay the loan, the bank sued and obtained a judgment. After the judgment took effect, the bank applied to restore execution, but it was terminated in 2016 because there were no more assets available for execution.
Coincidentally, several years later, in February 2024, one of the guarantors, Kang, deposited 35 million yuan into the same bank as a one-year term deposit account.
A month later, the bank deducted the deposit without notifying Kang. According to the judgment, after another month, the bank sent someone to find Kang and asked them to return related debt items from the previous loan guarantee case, which Kang did not know about until then and returned 280,000 yuan.
It wasn't until August 20, 2024, that Kang discovered that the bank had unauthorizedly deducted their deposit account. Therefore, they sued the bank.
The Jiangsu Provincial Luding County People's Court ruled that the defendant should return the deducted amount within ten days after the judgment takes effect.
Unauthorized Deduction of Customer Deposit, What Does It Mean?
Can the customer directly settle their guarantor debt with the bank? This is a question raised by many people.
According to Beijing Kangxin Law Firm lawyer Xu Hao, "This client owes money to the bank, and whether the bank can directly deduct their deposit account is two separate legal relationships."
The judgment shows that the Jiangsu Provincial Luding County People's Court ruled that Kang deposited 35 million yuan into the bank, which established a deposit contract relationship between the two parties. The bank as a professional financial institution has the responsibility to guarantee the safety of deposits.
At the same time, the court held that although Kang bore liability for guarantor debt, the bank could apply to restore execution to achieve its rights and interests. However, the bank's unauthorized deduction of Kang's deposit account has no legal basis and is not protected by law.
This case serves as a warning: banks cannot arbitrarily inquire into, freeze, or deduct customers' deposits without violating laws and regulations.
In Xu's opinion, banks are professional financial institutions that should have relevant legal knowledge. They should not unilaterally inquire into, freeze, or deduct customers' deposits without going through the judicial process. Although Kang was a guarantor in previous cases, the bank should apply to restore execution and obtain a court judgment before taking any action.
Xu emphasized that banks must guarantee the safety of depositors' funds, which is the foundation of their operations and reputation. If banks can arbitrarily deduct customers' deposits, it will violate the deposit contract and lack covenant spirit. After all, security is a prerequisite for customers to store their money in banks.
According to relevant businesspeople, the bank's direct deduction of customer deposits is a "bottom line" that challenges the bank's guarantee of customer funds safety, which is rare in current banking operations and has strict requirements under laws and regulations.
Under the Regulations on Deposits, Article 4 provides that any institution that discloses depositors' deposit situations or does not follow the judicial process to inquire into, freeze, or deduct deposits shall be ordered by the People's Bank of China or its branches to rectify the situation. If the situation is severe, it may result in fines, suspension of business operations, and even criminal responsibility.
Reviewing the administrative punishment information from the China Banking Regulatory Commission shows that there are few examples of banks being punished for illegally inquiring into, freezing, or deducting personal deposits. In recent two years, there have been several cases of "illegally inquiring" customers' deposits and being fined.
For example, on October 10, 2024, the Guangdong Provincial Banking Regulatory Commission's Shantou Branch revealed an administrative punishment information showing that a bank was fined 20 million yuan for illegally inquiring into personal deposit accounts. Relevant responsible persons were warned.
Another example is the case on August 8, 2023, where China Construction Bank (601988) and its branch manager were punished for illegally inquiring into personal deposit accounts, with a fine of 10 million yuan and a lifetime prohibition from engaging in banking business.