Facts:

The claimant is a customer of the defendant, a banking institution and had been enjoying credit facilities from the bank before September, 2008 when he applied and was granted another facility of N1,800,000.00 (One Million, Eight Hundred Thousand Naira) to purchase a used car. The claimant sued the defendant at the High Court of Lagos State alleging several infractions and illegal deductions and charges on the account opened for the facility. One of the alleged infractions was that immediately after the facility was paid into his account, the defendant illegally deducted the sum of N469,755.87 (Forty Hundred Sixty Nine Thousand, Seven Hundred Fifty Five Naira, Eighty Seven Kobo) and other arbitrary deductions. The claimant further alleged that twenty one percent interest per annum was agreed by the parties with a thirty-six months repayment period but that the defendant had been illegally deducting the sum of N89,997.03 (Eighty Nine Thousand, Nine Hundred and Ninety Seven Naira, Three Kobo) on a monthly basis from December, 2008 to May, 2011. The claimant alleged that the monthly deduction was only reversed in 2011 when he made a complaint to the defendant but that the defendant only refunded the excess charges up to 2009 and has refused to refund the excess charges from 2009 to 2011. The claimant also alleged that the defendant accused him of fraud and reported the transaction between them to the Special Fraud unit of the Police who visited him at his office causing him embarrassment in the presence of a client. The claimant stated that he was detained by the police on the instigation of defendant and made to sign various cheques in favour of the defendant amounting to N909,411.64 (Nine Hundred and Nine Thousand, Four Hundred and Eleven Naira, Sixty Four Kobo) and a cash deposit of N60,000 (Sixty Thousand Naira) to the Police.

After being served with the process, the defendant filed its defence and incorporated a counterclaim. In her counterclaim, the defendant alleged that the claimant was indebted to it in the sum of N2,430,445.61 (Two Million, Four Hundred and Thirty Thousand, Four Hundred and Forty Five Naira, Sixty One Kobo) being the total indebtedness of the claimant as at 30th April, 2012 including accrued
interest. The defendant further alleged that the claimant defaulted in repayment of an earlier facility granted to the claimant before the facility to purchase the car was granted and that the claimant did not use the facility to purchase the car as agreed. The defendant denied making illegal deductions on the account of the claimant and that it was the claimant that was in violation of the agreement between the parties.