THE RECENT international downgrading of our banking system which puts us on the international “gray list” of financial institutions which are not operating with undoubted probity is disappointing.
Bangko Sentral ng Pilipinas (BSP) is seeking the enactment of a law which aims to enhance consumer protection. The drafting of such a law is vital. In particular, it needs to be compatible with existing legislation-especially the Bank Secrecy Law (RA 1405) which was passed long ago – in 1955 in fact.
BSP reports that it received around 12,000 consumer complaints during January to June 2021. None of these complaints came from me. I have to report, however, that at my age, 78, I am conservative about the banking products and services that I use. Most of the time, I confine myself to cheques and cash, unexciting but reliable. I wonder about the newer forms of money transfer. Are they safe?
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Some time ago, it was reported that Bank of the Philippine Islands (BPI) was interested in taking over the business of Citibank in the Philippines. I have not heard of any recent developments. Is it possible that BPI has/is carrying out a due diligence exercise on Citibank’s business? If so, does Citibank pass with flying colors?
Anecdotal evidence suggests that there are a significant number of disputes between Citibank and its customers, particularly with regard to its credit card business.
Many years ago, I received many attempts by Citibank to accept its credit card. I did not reply because I have no desire to use credit cards. One missive from Citibank even thanked me for providing my new contact details. This was naughty because I had done no such thing.
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If a customer is honest and accurate, there should be no disputes. When there are disputes, I notice that these often depend on internal miscommunications between bank staff. I hope that any new Financial Consumer Protection Act will punish financial institutions which cause problems to its customers by these miscommunications.
My most recent experience occurred with a European branch of Standard Chartered Bank. This caused the bank to inappropriately threaten me with freezing my account. If implemented, this would soon create considerable difficulties since I would no longer be able to access my pension.
In fact, I hope any new Financial Consumer Protection Act would specify the circumstances under which a customer’s account could be frozen. Contrary to the attitude of some government officials, these should not include the customer being a member of an organization unloved by the government of the day.
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BSP believes that we may be taken off the undesirable “Gray list” by January 2023.
We hope so./PN
