A bank account is maintained on the basis that the bank will keep an accurate record of the customer’s funds and will only debit the account in accordance with the customer’s instructions, the terms governing the account, or a lawful authority. Where a bank wrongfully deducts money from a customer’s account, the customer is entitled to challenge the deduction and seek recovery of the money. A wrongful deduction can arise from an unauthorised transaction, an erroneous debit, excessive or unauthorised bank charges, a duplicate debit, a failed transaction that was nevertheless debited, or an error in the bank’s calculation of the customer’s indebtedness. The Central Bank of Nigeria’s Consumer Protection Framework expressly recognises unauthorised or erroneous debits, excess charges and financial loss resulting from staff negligence or fraudulent activities as categories of complaints that banks’ customer-compensation policies should address. This article explains what to do when a bank wrongfully deducts money from your account and the legal remedies available for recovering the money. What Is a Wrongful Bank Deduction? A wrongful bank deduction occurs where a bank debits a customer’s account without a valid basis. Examples include: A debit that the customer did not authorise. A bank charge that was not permitted. A duplicate debit for the same transaction. A failed ATM transaction where the account was debited but cash was not dispensed. A POS or electronic transaction that was reversed by the merchant but not credited back to the customer. A bank debiting the wrong amount. A bank deducting money based on an erroneous calculation. An unauthorised transfer from the customer’s account. Excessive or unlawful charges. A debit made after the customer has already settled the relevant obligation. The precise legal position depends on the circumstances of the deduction. Can a Bank Debit Your Account Without Your Permission? A bank cannot simply debit a customer’s account whenever it wishes. There are, however, circumstances in which a bank can debit an account without obtaining a fresh instruction from the customer. These include legitimate charges authorised by the applicable terms and conditions, statutory deductions, repayment of obligations where the bank has a valid contractual right of set-off, and other deductions authorised by law or the account agreement. The important question is therefore not merely whether the customer gave a specific instruction immediately before the debit. The question is whether the bank had a lawful or contractual basis for making the debit. Where there is no such basis, the customer can challenge the debit. What Are Common Examples of Wrongful Bank Deductions? Unauthorised Electronic Transfer Money can be transferred from an account through internet banking, mobile banking, USSD or another electronic channel without the customer’s authority. Where the customer did not authorise the transaction, the customer should immediately notify the bank and request investigation and reversal. Failed ATM Transaction An ATM transaction can fail while the customer’s account is nevertheless debited. For example, a customer attempts to withdraw ₦100,000, the ATM does not dispense the money, but the account statement shows a ₦100,000 debit. The customer should report the transaction immediately and request reversal. Wrongful Bank Charges A bank can also wrongfully deduct money by imposing charges that are not authorised or exceed the applicable limits. The CBN’s Guide to Charges sets out charges applicable to banking services and provides sanctions where a financial institution wrongfully imposes a particular charge on a customer. Duplicate Debit A customer can sometimes be charged twice for one transaction. Where only one transaction occurred but two debits appear on the account, the customer should notify the bank and request correction of the account. Erroneous Debit A bank can make an accounting or calculation error and debit the customer’s account with an amount that is not actually owed. Nigerian appellate decisions recognise that a bank’s wrongful debit can constitute a breach of the bank’s obligations to its customer. In Union Bank of Nigeria Plc v. E.D. Emole, the court considered a situation where the bank wrongly debited the customer’s account as a result of an error and treated the wrongful debit as a breach of the bank’s duty to maintain a proper and accurate account. What Should You Do When a Bank Wrongfully Deducts Money? The customer should act promptly. 1. Obtain Your Bank Statement First obtain a statement or transaction history showing the disputed debit. Identify: The date of the debit. The amount. The transaction description. The transaction reference. The account into which the money was transferred, where available. Any applicable bank charges. Do not simply tell the bank that “money was removed.” Identify the specific transaction. This is important because a customer bringing a legal claim must be able to identify and prove the particular debit being challenged. In Alhaji Aminu Hamisu Usman v. First Bank of Nigeria Plc, the Court of Appeal criticised a party who merely tendered a statement of account containing numerous alleged unauthorised charges without identifying the specific entries and explaining why they were unauthorised. 2. Report the Debit to the Bank Immediately Contact the bank through its official complaint channels. Where the transaction is unauthorised, report it as soon as possible. The complaint should identify the disputed transaction and clearly state that you did not authorise it, where that is the case. 3. Make the Complaint in Writing Do not rely solely on a telephone conversation. Submit a written complaint through the bank’s official complaint channel and retain evidence that it was submitted. The CBN advises customers to submit written complaints to their banks and obtain an acknowledgement for their records. 4. Request Reversal Clearly state what you want the bank to do. For example: I request the immediate reversal and re-crediting of the sum of ₦500,000 wrongfully debited from my account on 20 August 2026. Where appropriate, request that the bank provide the result of its investigation in writing. 5. Preserve the Evidence Keep: Bank statements. SMS alerts. Email alerts. Transaction receipts. ATM slips. POS receipts. Screenshots. Complaint reference numbers. Emails to the bank. The bank’s responses. Relevant