Losing Confidence In The Banking System
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| Hon. Dr. Nigel Clarke Minister of Finance and The Public Service |
The Minister of Finance Dr. Nigel Clarke needs to put the spotlight on this issue because consumers have raised this and other concerns about the banks for a number of years now.
The Challenge Of Accounts Becoming Dormant
There is the matter of dormant accounts which many of us have a problem with. Click on HERE to see Scotia Bank dormant account policy.
The question is, why one has to go to the bank to reactivate a dormant account? You are also required to carry an ID to the bank to reactivate your account. One should be able to reactivate an account using the bank Internet portal. Using the bank Internet portal is even more secure since you are required to have two layers of security. You long in to the site and the site generates an email to you your email account and then you are given a verification number which is used to access your bank account.
Why Accounts Become Dormant?
There are a number of reasons for a person's account being allowed to become inactive. The following are some of the reasons for the customer's banking account becoming dormant:
- Customer becomes ill and is unable to carry out transaction on the account.
- Customer forgets that they have an account at the bank.
- Customer dies and executors are not aware of such assets.
- The customer just wants the account to remain inactive especially if it's a savings accounts.
- Customer becomes senile and therefore does not even recall opening an account.
- Customer takes out another account at another bank.
- Poor customer service.
- Customer migrates or move to another area.
Banks Can Deal With The Challenge
- Send automated messages to the customer if the account is not active for three months every three months.
- Allow the customer to add a contact person to his customer record so that the bank can contact that person if the bank is unable to contact the customer.
- Allow the customer to use the internet to change contact information and change information for place of abode.
- Send customer automatic alert annually to encourage customer to update contact information.
Implementing New Ideas
Do We Really Want To Deal With The Challenge?
- NCB Suspend Dormant Account Charges - Gleaner August 7, 2011
- NCB account opening
- Government could get millions from dormant accounts - The Jamaican Blogs April 23, 2015
- Banks depleting dormant accounts - Gleaner Feb6, 2014
- Fund education from dormant accounts - Gleaner July 24, 2021
- Moves to reduce cap of 15 years to 7 on dormant account - Gleaner March 1, 2019
What i think they should never do that unless they let the customer know I have being through that am not in the country all the time and when I return it was all gone So they should really notified u.
ReplyDeleteWhat I would is for the bank to define "savings account"
ReplyDeleteMost people decide to put away lump sum for saving so why should the bank in all their wisdom take from my money that they loan to others and is already collecting interest on? This is dishonesty in its highest form which begs the question. Are these executives getting a cut from these so-called dormant accounts? Follow the money trail which will answer the questions
I believe they should try to reach the customers via mail, text messages, emails or phone calls, or print media even, I don't like how the banks operates at all, an this big gist now of for instance you live in Kingston and you hear your account is emptied via some transaction in Westmoreland, or your ATM card was use at some store ect that you've never been to or heard of.
ReplyDeleteThe banks only interest is to make a profit for it's shareholders. Unfortunately, often times we fail to read the fine print before signing a contract. Something we read, don't fully understand but still sign.
ReplyDeleteThis matter of people being shafted by the fine print isn't unique to the Jamaican banking system. We can only plead with our legislators to enact laws to protect the most vulnerable.
This has been a long standing issue for many years and for whatever reason it has never been fully address, i now hope that this is the time to put this matter to rest.
ReplyDeleteI could remember the days of putting money in the bank and watch it grows not diminish!, there was a genuine care for customers in the banking sectors, we watch as the changes crept in which take us to where we are, so sad.
ReplyDeleteThe banks should send a statement to each customer who has an account that is not being used often. This statement should be sent quarterly but they should not go in and determine that it is dormant and use up the money like that. That's so wrong. Hope something be done about it
ReplyDeleteBig thief is not arrested but little thief get arasred. A friend of mine saved $80000 and had cancer. When she send to collect her money, the account was empty. What a disgrace. I also lost money in Scotiabank as well. It's the government that is allowing this to happen, do you think I could do this to the ordinary person?
ReplyDeleteThere should be an overhaul of the rules that govern banking in Jamaica.
ReplyDeleteHow can I be the looser of fraudulent activities in the bank.
Isn't the money I put in the the bank insured?
In the United States my money is insured
While in the USA I came to Jamaica on vacation and stayed in a hotel. When I went back my account was charged twice
The bank gave me back my money and investigated the incident
The bank doesn't assume your activity regarding dormant accounts but instead prefer to update customers records with current information to satisfy AML requirements. At the time of review the bank reserves the right to discontinue relationship based on new information. Some customers do not like the scrutiny and FACTA may expose those residing overseas so accounts are left unattended even after becoming aware of it being dormant. inactivity or non activity on any account make them vulnerable to internal and external frauds and forgeries. Dormancy is a flag to protect such accounts electronically. Such accounts can't be accessed without senior level staff approval and involves two staff members usually. The central bank also has oversight and regulatory guidelines for these accounts. In fact they are reported on periodically hence the charge levied on customers was to offset some of the charges. Some banks have since waived that charge to customers. After 15 years of dormancy a commercial bank is required to pay send funds held on dormant accounts an close. The money is redeemable through the accountant General dept. It's important to educate ourselves on what obtains.
ReplyDeleteSis there is nothing in law as far as I know put in place to have another person's name as contact on the account who the bank could use as an alternative contact. Many things are put in place with original good intentions but what happens is another matter. There is little or no effort made as far as I know for the funds to go to person's estate if the account holder dies for example.
ReplyDelete