THE RECENT reports in which some BDO customers found that their accounts had been hacked and that money had been stolen are of great concern.
My concern was amplified when BDO lawyers reportedly said:
“Liability clause is a regular compliance in the banking industry. This has been part of the normal compliance for a long time. There was no added clause due to the recent incident” (where money had been stolen from accounts administered by BDO).
BDO Legal went on to say:
“BDO made exceptions and shouldered the losses not caused by the clients to maintain good customer relationship even if the Bank is not legally liable”.
Wow!
I have not discussed the foregoing with my bank, Security Bank, with whom I have had an excellent relationship for over 10 years. I also agree with a recent news item which said that Security Bank had been most successful in shielding its customers from the inconveniences from COVID-19.
But I am concerned with the BDO statement in which it affirms that BDO is not legally liable when there are losses from its customers’ accounts even if the customer is not at fault.
For me, this negates the whole purpose of banking. If a bank is not accepting responsibility when money is stolen, then what is the purpose of entrusting our funds with the bank?
I believe BSP should make a response to the pronouncement of BDO Legal.
***
In 2008, a family member paid for an insurance policy with PhilamLife through its then BancAssurance partner, BDO.
We never received the policy and eventually PhilamLife sent a refund in which it withheld P50,000. Our enquiries established that PhilamLife claimed that I had completed a “quit claim” form dated September 19, 2008, which indicated that I had disengaged from the purchase of the insurance policy. I had done nothing of the kind. The quit claim form was not signed by me.
One of BSP’s many strengths in that, of all government instrumentalities, it is most effective at providing consumer protection.
In 2014, I had a helpful dialogue with BSP’s Legal Officer Atty Noel Neil Q. Malimban. He kindly offered to arrange a voluntary mediation meeting with BDO to discuss the disputed transaction. I readily agreed to this, but unfortunately, BDO did not. This was regrettable because I could have explained that PhilamLife, BDO BancAssurance partner in 2008, was able to apply my signature to a document I had not seen. Presumably my signature was purloined from my BDO signature card.
Shame!
Probity is vital and banks need to take every precaution that documents are not falsified.
BSP does an excellent job in ensuring that our banking system is secure.
But does it need more authority over financial institutions?
I believe it does./PN
