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Bank misled customer into buying a 8 year saving plan
21 Apr 2018 (78 views)

Dear Mr Tan,
I would like to share with you one of the issue i face currently with Bank X. Last year I went down to one of the branch to place a fixed deposit. The staff recommended me a better higher interest that I can save up to 8 years. He mentioned that is a saving plan plan.

Due to time constraint as the branch was closing soon, the staff did not explain to me that it was actually an insurance policy. He actually make me signed for two types of deposit plan and mentioned that I have to top up on the second year to another plan to have higher interest.

As I was a first timer, I believed that it was a fixed deposit plan. He hurriedly asked a few question in regards to my background and asked me to sign a few papers without going through them.

I asked him for a receipt but he said that it will be in a document sent to my address. I did receive the document but I did not read it as I expected it to be for opening the fixed deposit.

A few weeks later, I decided to continue the normal fixed deposit and stop the 8 years saving plan. I called up the bank and was shocked to learn that my 8 years saving plan was an insurance policy and I would lose my saving if I stopped the plan.

I searched for the booklet and found that it was an insurance policy. If I did not pay the second year sum, I would lose my money. I am lost and try to ask around on this issue. 

I went to the bank and filed a complaint. The bank carried out an investigation. I have just receive a letter from them that the bank cannot accede to my request of take back my money ($10,000) if I was not able to continue and I would lose all of it.

I am a housewife with no income. I am not able to pay the second year premium (another 10K).

I was told that I could file my complaint with FIDREC. I am not sure how high is the winning rate for my side if i were to file for it.  Can advise me on this?  

Dear
I have received a few cases similar to yours for the past years. When the customer made a complaint to the bank, the bank carried out an investigation and said that they were not able to refund the money. When the customer filed a complaint in FIDREC, the outcome of the FIDREC process is usually in favor of the bank.
They will claim that their marketing officer had explained the matter to you, and you understood what you were buying.

If you want to pursue this matter, you can come to my office next week and bring the relevant papers.

Tan Kin Lian


Bank misled customer into buying a 8 year saving plan
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Dear Mr Tan,
I would like to share with you one of the issue i face currently with Bank X. Last year I went down to one of the branch to place a fixed deposit. The staff recommended me a better higher interest that I can save up to 8 years. He mentioned that is a saving plan plan.

Due to time constraint as the branch was closing soon, the staff did not explain to me that it was actually an insurance policy. He actually make me signed for two types of deposit plan and mentioned that I have to top up on the second year to another plan to have higher interest.

As I was a first timer, I believed that it was a fixed deposit plan. He hurriedly asked a few question in regards to my background and asked me to sign a few papers without going through them.

I asked him for a receipt but he said that it will be in a document sent to my address. I did receive the document but I did not read it as I expected it to be for opening the fixed deposit.

A few weeks later, I decided to continue the normal fixed deposit and stop the 8 years saving plan. I called up the bank and was shocked to learn that my 8 years saving plan was an insurance policy and I would lose my saving if I stopped the plan.

I searched for the booklet and found that it was an insurance policy. If I did not pay the second year sum, I would lose my money. I am lost and try to ask around on this issue. 

I went to the bank and filed a complaint. The bank carried out an investigation. I have just receive a letter from them that the bank cannot accede to my request of take back my money ($10,000) if I was not able to continue and I would lose all of it.

I am a housewife with no income. I am not able to pay the second year premium (another 10K).

I was told that I could file my complaint with FIDREC. I am not sure how high is the winning rate for my side if i were to file for it.  Can advise me on this?  

Dear
I have received a few cases similar to yours for the past years. When the customer made a complaint to the bank, the bank carried out an investigation and said that they were not able to refund the money. When the customer filed a complaint in FIDREC, the outcome of the FIDREC process is usually in favor of the bank.
They will claim that their marketing officer had explained the matter to you, and you understood what you were buying.

If you want to pursue this matter, you can come to my office next week and bring the relevant papers.

Tan Kin Lian