Resort Savings denies allegation of fund diversion

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The management of Resort Savings and Loans Plc, has denied allegations by the Consumer Protection Council (CPC) that it deliberately holds the funds of some of its customers and diverting such funds to other purpose.

CPC had also alleged that the bank diverted loans disbursed to nine mortgage beneficiaries by Federal Mortgage Bank of Nigeria, FMBN and gave them incorrect information about their applications for National Housing Fund.

The mortgage bank in a statement on Wednesday, stressed “respectfully that these allegations were based on misinformation and lack of coordination on the part of the customers.

RSL document
RSL document

“Regrettably, the customers had unresolved issues with the bank with respect to their failure to produce the title deeds of the properties in question.

“Also when the complaint of the Consumer Protection Council came to us, we swiftly replied them with the correct position of things via a letter dated August 5th 2016 (copy attached) which was duly received and stamped in the office of its Director General.

“Meanwhile following the intervention of the Federal Mortgage Bank of Nigeria (FMBN) the disbursement of funds to batch 54 have been recalled while Resort is in the process of transferring the funds to FMBN.

“At RSL, we operate by the rules. It will be unprofessional on our part to release funds for a project that does not seem to conform to the laws of the land. We are a law abiding corporate organization and we must follow due process in releasing funds to our clients/customers.

“We therefore strongly appeal to the customers to exercise restraint and bear with the bank, and regret the inconvenience this delay in releasing the funds may have caused them, but we are bound to operate by the rules.

“We are a corporate organization and we have to give account of every transaction. We are not out to frustrate our clients and make things difficult for them,” the bank said in a statement by Chidi Ahaotu, its Head, Legal.

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