KUCHING – The Sarawak Consumer Association (PPS) has raised concerns over the growing number of complaints regarding sudden bank account closures without clear explanations, stressing that consumers deserve transparency and fairness in financial matters.
In the past fortnight, PPS received three separate complaints from individuals whose accounts were either closed or forced to shut down unexpectedly.
Despite seeking clarification, the affected consumers were told by their banks to refer to Bank Negara Malaysia (BNM). However, checks with BNM revealed no records or instructions linked to their accounts.
Further enquiries with the Royal Malaysia Police, including the Commercial Crime Investigation Division, confirmed that the complainants were not under investigation.
Each of them has since lodged police reports to document their grievances. One particularly troubling case involved a consumer whose account was closed eight years ago and who has yet to receive a proper explanation.
The prolonged issue has disrupted his ability to claim insurance, collect salaries, manage daily financial transactions, and operate his company’s accounts.
PPS President, Dr Wynson Ong Teck Ping, acknowledged that banks have the authority to act against accounts suspected of fraud, money laundering, or misuse. However, he emphasised that customers with no record of wrongdoing should not be left in the dark.
“If there is evidence that a consumer is misusing a bank account or engaging in illegal activities, then the bank has the right to take appropriate action. However, if there is no solid reason and no wrongdoing is proven, consumers should not be left without an explanation to the detriment of their lives and reputation,” he said.
Dr Ong warned that account closures could damage a consumer’s financial reputation, potentially leading to rejection of new account applications or closure of other accounts.
He suggested that temporary freezing of accounts might be a more balanced approach, allowing investigations to proceed without completely denying consumers access to essential financial services.
He added that fairness and the right to defend oneself must be prioritised in every action taken by financial institutions.
PPS has since informed BNM of the matter and pledged to work closely with the authority to review the cases and secure fair resolutions.
The association also urged banks to improve transparency in their procedures and ensure that customers are provided with sufficient information when accounts are frozen or closed.
“Efforts to combat financial fraud and scam crimes must continue resolutely. However, such actions should be targeted at individuals or syndicates who actually commit offences, not ordinary users who have no record of misconduct. The right of users to receive fair treatment and reasonable explanations must always be respected,” Dr Ong added.
PPS reaffirmed its commitment to monitoring developments and assisting affected consumers, ensuring that principles of fairness, accountability, and transparency remain central to Malaysia’s financial system.
Consumers facing similar issues can contact the Sarawak Consumer Association hotline at 017-710 9299.
