Buyer beware

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April 28, 2006
Buyer beware

A weekly look at what to watch out for in the world of banking.

Figures, case studies and tips come from the Consumers Association of Singapore (Case).

The world of banking

16 No. of cases filed (January to December 2005)

Top complaints

1. Misrepresentation

2. Unsatisfactory service

# CASE STUDY

A retiree was persuaded to sign up for two accounts of $20,000 each. He was told that he would get a 10 per cent interest on the capital. He was not told what he was signing for and for how many years. He did get an interest payout of S$2,000 soon after. But he felt uncomfortable and approached Case for advice.

# OUTCOME OF CASE

The consumer had signed up for a 10-year equity-linked deposit. Though the consumer was illiterate in English and had no formal education, no needs analysis was conducted. Case wrote in on his behalf. The bank refunded the money without interest and without any admission as to liability.

# CONSUMER TIPS

1) Beware of hype.

2) Do not sign on the spot; get a second opinion if in doubt.

3) Read the fine print.

4) Most banks have a Quality Service Manager, who you should contact first. Case or the Financial Industry Disputes Resolution Centre would be the next step. The Monetary Authority of Singapore is responsible for the conduct of banks and wrongdoings should be reported to the MAS.