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Friday, September 16, 2011

PDIC Forum Held in Cebu for LBC Clients

With the help of the Cebu City government a forum was held yesterday at the Sinulog Hall of the Rizal Library in Cebu City participated in by LBC depositors, borrowers and other LBC clients who filled up the said hall as well as the Philippine Deposit Insurance Corporation (PDIC) which was recently made the statutory receiver of LBC Bank.

During the forum, PDIC Claim forms were distributed to LBC depositors who have a deposit balance of greater than P10,000. Those with P10,000 or less in their account will not need to file a claim provided their address in the bank records is complete and accurate. A PDIC representative was present to give instructions in filling up the form as well as talk about the claiming process.

The representative clarified that it was the Central Bank who ordered the closure of the bank and not PDIC. He added that at this point, transactions made with former LBC employees will not be recognized as LBC is under PDIC receivership already.

He also reiterated that the maximum deposit insurance coverage is P500,000.

The period for claim settlement is yet to be announced. Keep posted to the PDIC website for updates.

During the open forum, many disgruntled and visibly angry depositors,a good number of them, senior citizens, made known their displeasure with the action taken by the Central Bank which caught them by surprise. They were also worried of the length of time their hard-earned money will be recovered.

Some of the depositors also expressed concern whether they will still receive the higher-than-usual interest (at the time the bank was closed) as promised by the bank when they opened their accounts. They were also some foreign national depositors who asked questions during the forum. It was noisy as the atmosphere was one of disbelief and discontent.

LBC has more than 300,000 accounts which is said to be even more than Banco Filipino even with the former's lesser number of branches. More than 90% are believed to be covered by the deposit insurance.

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