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Kuda Bank invites police to arrest PoS operator for making inquiry about blocked account (Video)

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Kuda, a Fintech startup, on Tuesday ordered the police to arrest one of its account holders, Olakunle AbdulGafar, for asking why his account was blocked..



The 24-year-old Point of Sale (PoS) operator had visited Kuda branch in Lagos following a lock placed on his account after transferring the sum of N577,000 from his Moniepoint account on April 13.

AbdulGafar is a member of the National Youth Service Corps (NYSC) posted to Ogun State.

In an email sent to the PoS operator and seen by Ripples Nigeria, Daniel Ade-Ojo, who is a member of Kuda Fraud Team, said that a probe was being carried out by the startup to ascertain the source and purpose of the fund.

He wrote: “We tried reaching you on your mobile line but efforts have been futile. Please be informed that we are conducting a review with regards to the recent transactions made on your account to enable us better understand and profile your account appropriately. Please let us know the source and purpose of the inflow.”

AbdulGafar’s brother, Jamiu, told Ripples Nigeria that the young man’s effort to clarify the source and purpose of the funds via email and direct message to Kuda on Twitter was abortive after the startup refused to acknowledge his messages.



He later proceeded to Kuda’s office to make a formal complaint on Tuesday and during his inquiry, Kuda used the police instead of an ombudsman to settle the matter.

In one of the videos seen by Ripples Nigeria, AbdulGafar was manhandled by police officers in Kuda’s premises, and at some point, he lied on the floor with one of the operatives dragging his trouser.

He had since been detained by the police on Kuda’s directive.

“He was arrested and still in the police custody as we speak, “Yes he was injured on the face! I haven’t seen him though but I was told he was injured.”

“I never knew the reason why they called the police, but I’m very sure he’s not into fraud and what he has is legitimate money.



“They said the account was locked because they were suspecting his account. He’s into PoS business, so it’s very understandable there will be inflow and outflow of cash,” Jamiu stated.

AbdulGafar’s arrest was against the Central Bank of Nigeria (CBN) Customer Protection Regulations on customers’ complaints.

In Section 6, subsection: 6.2, the CBN stated clearly that complaints management channel should include letters, emails, telephone lines, social media, and digital software platforms – which must all be functional and accessible to the customer.

The apex bank also directed financial institutions to set up Internal Dispute Resolution (IDR) unit headed by Executive Compliance Officer to track customers’ complaint or designate a unit or staff to resolve the complaints.

This was not the first time Kuda was being accused of using security agents to arrest customers for requesting why their accounts were locked by the company.

There was a claim in November last year that the startup locked a customer’s account, and demanded he visit in person before it can be unlocked.

Unknown to the customer, the company had invited the Economic and Financial Crimes Commission (EFCC) to arrest him the moment he stepped into the premises.

Watch the below:

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