PDIC reminds depositors to be vigilant

CEBU, Philippines - State-owned Philippine Deposit Insurance Corporation (PDIC) has reiterated its call warning the depositing public to be extra vigilant when making bank transactions by limiting the activity only within bank premises, to avoid untoward incident in the future.

PDIC president Jose Nograles said that Filipino depositors should learn from Legacy controversy, and that transacting bank related business should only be done inside the bank, with authorized banking personnel, and doing it outside of banking premises endangers depositors.

“The banking industry is based on trust. You cannot just trust anyone who claims that they can collect payments from you. It must be through authorized bank personnel or risk non-payment of deposit insurance,” Nograles said.

He said there are complaints of unscrupulous people, posting as bank employees, directly soliciting from the public outside of bank premises.

“Depositors need to be cautious nowadays because many bad elements continue to take advantage of their finances,” Nograles said.

He added that despite the necessary safety precautions and regulations employed by the country’s banking sector, the public must remain vigilant in their bank transactions.

Most of those who fall victim to this illegal scheme are new depositors, he said.

“If transactions are made outside the bank, depositors, have no way of verifying whether the funds actually flowed into the bank or that such transaction was recorded,” Nograles warned.

The call to safe and responsible banking is part of PDIC’s “Be A Wise Saver” campaign which promotes the Seven Habits of a Wise Saver. Among the Seven Habits is Habit No. 5, “Transact only inside the bank with authorized personnel.”

The Be A Wise Saver campaign spearheaded by the PDIC with the participation of the Bangko Sentral ng Pilipinas (BSP), the Bankers Association of the Philippines, the Chamber of Thrift Banks, and the Bankers Marketing Association of the Philippines, was designed to educate the public on basic banking awareness and inculcate market discipline in bank depositors.

The PDIC President stressed that the habit of transacting only with legitimate bank personnel inside bank premises would help prevent a repeat of the predicament being faced by some depositors of the 12 Legacy-affiliated banks that closed in December 2008.

He said the country’s deposit insurer having taken mental note from the bitter lessons learned from the experience of those who placed their earnings, savings and trust in the Legacy Group, which continues to haunt every Filipino who believes in the integrity and value of the banking system.

Senate and House investigations conducted last year unveiled a scheme where depositors of the Legacy banks transact with so-called “agents” of the bank.

However, examination of the books of the banks revealed that some funds coursed through agents were diverted and a number of transactions not recorded in the books of the banks.

PDIC had no recourse but to deny such claims in accordance with provisions of law, Nograles said.

He added that PDIC pays deposit insurance only to valid deposit accounts.