We, an organization named DEADBOL (Depositors Enabling All Depositors in Banks Of Legacy), thought that it may be of some interest to you to become aware that a huge number of OFWs (Overseas Filipino Workers), expatriates currently residing in the Philippines, and other foreigners with financial interests in the Philippines, will no longer trust another peso of their hard-earned money to become part of the Philippines banking industry. They will be depositing their monies in the countries where they now reside or were former residents of, but more importantly, in countries that they trust to secure their financial futures.
Many of the aforementioned mistakenly believed that the assurances posted within Philippine bank premises, along with the same being stated on a government departmental website, were in fact true. What we are referring to here are the PDIC’s (Philippine Deposit Insurance Corporation) misleading statements about deposit insurance in the Philippines. Indeed, they actually state that their vision is to be a ‘world-class’ organization in depositor protection and that they actually “exercise complementary supervision” of the banks that they oversee.
These have been proven to be just meaningless words, issued to bestow a false confidence upon a nation of unsuspecting depositors. In practice, PDIC don’t even come close to ‘world class’ and second class would be paying them a huge complement.
Members of DEADBOL, and thousands of others, had the misfortune of depositing their hard-earned monies in banks supervised by PDIC, and are now paying a huge price for believing the statements proudly promoted by this government entity. Many even encouraged family members to deposit into the Philippine economy, only now to rue the day that they gave such encouragement. Family’s have been torn apart by PDIC’s inability to act on its mandated obligations.
It has now been ten months since PDIC supervised banks closed, and more than the mandated six months since claims were finally allowed to be filed. Many claimants have still not heard the slightest murmur from PDIC regarding their claims. Some, admittedly, have received a very small percentage of their overall claims, but this feels like the deployment of yet another confidence trick, nothing but fire-fighting by the PDIC. They are certainly doing nothing to eradicate the inferno.
Some depositors have now received demands for additional proof of ownership of deposits; proof that many attempted to provide at the time their claims were submitted, but refused by the very corporation now demanding such after six months of procrastination. Threats of denial are even issued with such requests if the demands are not met in a timely manner. To add extra anxiety, the PDIC demands such evidence via the inefficient Philippines postal service, sometimes not arriving at the recipient’s home address until expiry of the ‘cut-off’ date, hence denial of the claim.
Although PDIC demand punctual compliance with their demands for further evidence of deposit; when supplied to them, depositors cannot expect to be compensated in anything like a timely manner. We know that depositors providing such evidence have still not been compensated after more than three months since providing such. Still they wait!
Depositors have been condemned in the newspapers and other media, by PDIC, for being stupid and depositing in a banking system in which the PDIC provide complementary supervision. PDIC say that depositors should have known better than to use it.
PDIC, since the closing of these banks, states that depositors need to ensure that seven separate ‘internal’ bank documents are on file with any bank in which deposits are placed, for each transaction, or face denial of claims submitted should the bank close. These internal documents also need to be made available on an ongoing basis, as it is possible for a bank to be closed at any moment in time.
Since hearing such absurd comments coming from the upper hierarchy of Philippine government, affected depositors have asked their bank managers (banks in which other deposits are held) if they can verify on a monthly basis that these internal documents are present and correct on the depositors’ accounts. Naturally, and expectedly, the depositors were laughed at and told that these documents are checked by BSP (Bangko Sentral ng Pilipinas i.e. Central bank of Philippines) and PDIC audits. Therefore, PDIC making such a statement that any problems with these internal documents is grounds for a denial on claims effectively makes depositors responsible for the day-to-day management of the banks in which the deposit. That is simply ludicrous.
PDIC claims that the closing of the Legacy banks overwhelmed them, and they are not prepared to handle claim volumes of that size (approximately 14 billion pesos in 130,000 accounts). Yet at the same time their vision is to be ‘world-class’.
PDIC claims that the closing of the Legacy banks overwhelmed them, and they are not prepared to handle claim volumes of that size (approximately 14 billion pesos in 130,000 accounts). Yet at the same time their vision is to be ‘world-class’.
One has to wonder what would happen if a large bank such as PNB (Philippine National Bank), BPI (Bank of the Philippine Islands) or BDO (Banco De Oro) were closed; how long it would take to compensate its depositors? Using the criteria that PDIC have recently been working with, it would take decades for all depositors to eventually be reunited with their hard-earned monies.
In reality, we depositors believe we know the reason for the fiasco that we are all too aware that we are involved in.
PDIC is bankrupt!
We know they owe BSP billions more pesos than they claim to have in their own DIF (Deposit Insurance Fund), and we also know that most of their funds are tied up in propping up larger commercial banks; UCPB (United Coconut Planters Bank) for example.
Our organization comprises of many walks-of-life, from all over the world. Some have had to deal with real ‘world-class’ deposit insures in their past, and have been compensated with monies due them in a matter of days. Not months, or years, or never!
The FDIC (Federal Deposit Insurance Corporation) in the United States has been known to compensate within seventy-two hours. The FSCS (Financial Services Compensation Scheme) in the United Kingdom recently responded to the closure of a bank by temporarily removing its ceiling on the amount that a depositor could hold in an account, and guaranteed every private depositor the return of all their monies regardless of how much they had in their account. They were reimbursed shortly after without inconvenience or harrassment. These are just a few examples. We could provide more to illustrate how a caring world-class deposit insurer conducts itself.
The unfortunate experience of a depositor in a closed bank in the Philippines goes something like this:
Wait three months after the bank has been closed.
Travel hundreds of kilometers to pick up a claim form, to be given a date on which a claim can be filed.
Travel hundreds of kilometers again to simply hand in the completed claim form.
Be required to give up the original CTD, which wasn’t previously required, only to be told months later that it was a mistake and we could have given them copies, which at the time they refused.
Be reassured by PDIC staff that everything is fine and we will see results after 30 days,
After 30 days, be told to wait 2 more months.
After 2 months, be told to wait 2 weeks.
After 2 weeks, be told to wait another 2 weeks.
After another 2 weeks be told to wait another 3 months.
At this point, do you think that anyone believes anything the PDIC announce?
The vision to become a world-class deposit insurer is better described as a mirage, an illusion, or a myth. It is merely a confidence trick used to lure unsuspecting and innocent people into a potential life of turmoil, hardship and desperation.
Our mission and vision is to enlighten and educate those both in the Philippines and abroad the perils of trusting money to the Philippine banking system. Better, and much safer opportunities exist elsewhere. OFWs, their patriotism undeserved by an uncaring government, need to be made aware that their financial security lies elsewhere (often in their country of residence), in countries where trust in its banking industry is respected, not exploited.
Remittance to loved ones should only be for their day-to-day needs. Our expatriate members know how this is achieved in a cost effective manner, bypassing any requirement to deposit such monies in Philippine banks, where residing money is put at risk by snail-paced authorities. We can help our OFW neighbors achieve such, and reduce their risks.
A big difference between the PDIC and us is that we will deliver our mission, and fulfil our vision. Of that we are sure.
DEADBOL
DEADBOL
We, DEADBOL, are a selfless organisation and are not prepared to sit back and watch the injustice bestowed upon the unfortunates. Mankind deserves much better than what is delivered by this farce of a government corporation. OFWs, expatriates, foreign interests, as well as the Filipino, all deserve much better than what is on offer.