Business & Money | Tuesday 7 March, 2017 8:27 am |

The Administrative Court in Jeddah ordered the Saudi Development Bank to refund SR750 to a Saudi who filed a lawsuit demanding SR1 million in compensation after he discovered that a bank client had forged his signature to apply for a loan.

The case started when an individual who wanted to apply for a bank loan forged the Saudi’s signature as a guarantor in the application form, which a bank employee failed to notice.

The victim was surprised when he received notifications from the bank of late payment by a borrower, saying he was the official guarantor. The victim said he did not sponsor anyone and that the signature was forged. The case then was transferred to Jeddah police.

The victim filed a lawsuit in the administrative court demanding SR1 million in compensation from the bank for psychological damage. The bank claimed that the mistake was by the loan-approving officer was not intentional.

The bank’s manager testified that the employee had good intentions and could not identify the forged documents.

The judge, after listening to the bank’s side, rejected the SR1 million compensation plea and ordered the bank to refund an amount of SR750 deducted from the man’s account.