Did CIMB breach contract by freezing customer accounts without lawful reason?

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CIMB Denies Breach of Contract Over Frozen Customer Accounts

Nine individuals and three companies are suing CIMB Bank Berhad and CIMB Islamic Bank Berhad, alleging a breach of contract due to the freezing of their current and savings accounts in January. The plaintiffs claim their accounts were frozen without lawful reason, leading to financial difficulties and a violation of the bank's terms and conditions. CIMB, however, denies any breach of contract and states it will defend its position.
Allegations of Unlawful Account Freezing

The plaintiffs assert that their bank accounts were frozen by CIMB between January 26 and January 28. Upon contacting the bank branches for clarification, they were informed that their accounts were suspected of being involved in illicit and suspicious transactions. The plaintiffs contend that they were not engaged in any such activities that would warrant the freezing of their accounts, as stipulated by Clause 7 of the savings or current account terms and conditions.
Claims of Negligence and Breach of Duty

Beyond the alleged breach of contract, the plaintiffs also claim that CIMB neglected its duty of care. They allege that the bank allowed negligence by a third-party money remittance service provider to negatively impact their rights and positions as depositors. This, they argue, constitutes a failure by the defendants to ensure that third-party actions would not affect their customer rights.
Legal Action and Bank's Response

The plaintiffs are seeking a declaration from the High Court that CIMB breached the terms and conditions of their savings and current accounts by freezing them without a lawful reason. Case management for this matter has been scheduled for March 15. In response to the lawsuit, CIMB has issued a statement denying all allegations of breach and affirming its commitment to a fair resolution with the affected customers.

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Did CIMB breach contract by freezing customer accounts without lawful reason?

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