Until and unless people start challenging the institutions legally through court of law, things like these will CONTINUE to happen regardless of whats the banks "stated" policy or whats in the terms and conditions. We have to stop taking organizations decision as the final word.
We all talk about free judiciary but none of us actually wants to go through the hassle to use that judicial system, no matter how handicapped it is!
Approach the mohtasib, file a case with the help of an attorney, gather all your documental proof in a file, write letters to major newspapers. And when you file any legal documents to take action, take copies to the ppl at UBL you met and let them know what ure doing. If in the meantime they feel their jobs could be jeopardy due to defamation of the bank they might even cut you a deal.