Mortgage bank refutes allegation of funds diversion

A leading primary mortgage bank, Resort Savings and Loans Plc, has debunked claims it withheld and diverted funds meant for customers.

The firm made this known in a statement signed by its Head of Legal Department, Chidi Ahaotu, where it also stressed that the allegations were based on misinformation and lack of coordination on the part of the customers.

“Our attention have been drawn to news making rounds that Resort Savings and Loans Plc, a mortgage bank based in Lagos with branches across the country was deliberately holding the funds of some of its customers and diverting such funds to other purpose by the Consumer Protection Council (CPC),” Ahaotu said.

“It was also alleged that the bank diverted loans disbursed to nine mortgage beneficiaries by FMBN and gave them incorrect information about their applications for National Housing Fund,” he further stated.

He insisted that the allegations were based on misinformation and lack of coordination on the part of the customers. “Regrettably the customers had unresolved issues with the bank with respect to their failure to produce the title deeds of the properties in question,” he said.

Also according to him, when the complaint of the Consumer Protection Council came to them, the company swiftly replied them with the correct position of things via a letter dated August 5, 2016, which was duly received and stamped in the office of its Director General.

The legal practitioner further noted that following the intervention of the Federal Mortgage Bank of Nigeria (FMBN) the disbursement of funds to batch 54 had 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 organisation and we must follow due process in releasing funds to our clients/customers.”