the letter is found at
http://www.stochasticsoccer.com/kakarukeys/dbs.html.
There are two very large screenshots, I don't want to post them here. Please see for yourself.
DBS Bank's ploy to extract money from small savers and borrowers
Dear Editors,
I write to you to tell my story on how DBS Bank had deviously extracted money from me, and many others who may also have similar experience. Please feel free to publish my story to forewarn all readers, lest they should suffer the same fate. I will give my account as accurately as possible.
I had borrowed a study loan of more than 14k from DBS Bank. After my graduation, I began repayment of my loan in the form of monthly installments. According to the agreement, the minimum monthly installment is $100, but DBS Bank arranged for me a $200 monthly installment plan, to repay the loan by deduction from my POSB Bank account. Before February 2006, all were smooth, except for one time I failed to maintain enough fund in my account to meet the deduction. DBS used a robot to call me 4~5 times every day and charged me an incredibly high interest for the arrears. The interest if I remembered correctly, was 12% (p.a.) compounded daily! But still it was just a few cents, so I did not bother.
In February 2006, I received a call from DBS staff, saying that there is shortfall in my account, which I believed was not possible because I had earlier transferred sufficient fund into it. Later I checked that it was due to a service charge of $1 charged on the 31st January (See screenshot1 attachment), because my balance is below a minimum balance of $500 specified by DBS. This policy was recently imposed and was not around when I opened my account. At the very end of my email, I attached a letter sent to me from DBS.
screenshot1
The thing I could not understand is, later on 2nd February, I transferred $200 into my account, but DBS only deducted $199 to pay the loan (See screenshot1) and had their staff to inform me that my account has a shortfall ?! Later I put more money into my account to meet the $1 deduction, fortunately they did not charge me exorbitant interest for the $1 arrear (See screenshot1).
Later in the month I saved more money and my account balance was $500 as at 22/February (See screenshot2). To my disbelief, DBS still went on to deduct $2 service charge on 28th February!!! To check what I said is true, see screenshot2: $500(after 22nd Feb) - $2(SC) - $200 (installment) = $298 (my current available balance).
screenshot2
Feeling irritated, I decided to close the account. According to DBS letter, I should make new arrangement for the study loan repayment first. It turned out that, DBS refused to allow new arrangement to be made for the study loan repayment. DBS deliberately want me to keep that account so that they can charge extra fee for it!
The following is the account of the events that unfolded later. On 3rd of March, I went to the Buona Vista branch of DBS Bank to settle the issue. I approached the customer service and said I want to close my account and want to change loan repayment method to GIRO deduction from my OCBC bank account. The staff had some problem checking for my study loan details, this I felt that is because DBS has a very poor computer database system. Eventually, the staff called up the loan section, and confirmed that they do not allow study loan to be repaid by GIRO deduction from other bank accounts other than DBS and POSB.
I can hardly understand the rationale behind this. As far as repaying loan is concerned, GIRO deductions from any bank account are the same. I asked further if I can repay the loan by direct deposit. The answer was "No". I asked if there are other alternatives. The answer was "Yes, what about you transfer more money into your account...."
I was angered by this answer. It all became clear that DBS has been guilefully playing a mind game with me, trying to "encourage" me to save more money into my bank account. What a shame for the national bank of Singapore to use such a low-down trick to fight off competitions from other banks, such as UOB and OCBC who never give me any problem.
I replied that because other banks are also imposing such a minimum balance policy, I do not have extra money to spare, is there any other option for me? The answer was "I am sorry, no". The staff then gave me the number of DBS loan section.
The next day, I called up the loan section, after a long wait, the call got through. I told the staff in charge that my account will be closed soon, and I want to arrange the loan to be repaid by deduction from OCBC bank account. The staff immediately reiterated that they will not approve that, repayment of loan can only be done through DBS/POSB accounts. The staff maintained that DBS will not close my saving account because it is a "loan servicing account", and the service charge cannot be waived because of the "account requirement".
When I asked whether I can repay the loan by cash or cheque deposit, I was given an utterly absurd answer. The staff told me that they are strongly against that, if I want to do so and close my account, I must pay the installment on an exact day every month, later than that, I shall be charged extra interest, earlier than that, I shall also be charged extra interest, as it is considered a "capital payment". I commented that "this is a deficiency in your system." The staff disagreed and said "that is why we would like you to use an account to repay the loan.", I again protested against the service charge. "What can you do about it? Mr. xxxx (my name)", this was what the staff said, note the insulting tone. I then asked if there is other account type which does not have a minimum balance requirement, and if I can convert my account to that type. The answer is "No". I was about to ask for staff's name, and to request to speak to her manager / director. To my astonishment, she hanged up. I called back only finding that the machine operator was saying "our working hours on saturday are from yy:yy to yy:yy, please call us on other working days."
This concludes the events that happened to me and possibly others. DBS is using a devious scheme to ensure that their account holders who have loaned money from DBS will save more money in their accounts, if they do not or cannot, DBS will freely extract extra $2 every month from each of them. While doing so, DBS prevent them from closing their accounts. If they insist and proceed to close their accounts and repay the loans by direct deposit, DBS will charge extra interest if they do not repay the loan exactly on time (too early or too late).
All I said is true, I can testify for it. Big corporate scams are common in Singapore in recent years, so are defamation lawsuits as a tool used by rich people to silence those who dare to expose their wrong-doings. I am poor and do not have the resources to fight any defamation lawsuit, I have to protect myself. For that reason, please do not disclose my personal details, before they are willing to admit their mistakes, should you want to publish my story.
Thank you.
Yours truly,
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxx,
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letter from DBS attached below
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Dear Sir/Madam,
POSB SAVINGS ACCOUNT NUMBER: xxx-xxxxx-x
We wish to inform you that your account has a current balance of $0.00
as at 28/01/2006.
As the average daily balance was below the minimum of $500 required
for the account, a $2 fall-below fee had to be deducted from the
account. However, there were insufficient funds in this account to
meet the $2 fall-below fee.
Please note that the $2 fall-below fee will be waived if the average
daily balance of $500 is maintained in the account for the month.
Customers are advised to maintain sufficient funds to meet the $2
fall-below fee deduction, if any. Should you wish to maintain this
account, please top-up the account by 6pm on 31/03/2006.
If there is no top-up into the account or insufficient funds to meet
the $2 fall-below fee deduction for the next 2 months, it is with
regrets that we will proceed to close the account.
In the event that the account is closed, please note that the ATM Card
linkage to this account, GIRO, Interbank GIRO (IBG) or credit
arrangements (eg. salary crediting) will be terminated. You should
therefore make alternative arrangements for the services linked to the
closed account.
Please ignore this letter if you have topped-up funds into your account.
Please do not hesitate to call our 24-hour hotline at 1800-339 6666
(65-6339 6666 if you are calling from overseas) should you require
further assistance.
Thank you for banking with us.
Yours sincerely
Consumer Banking Group, Singapore
DBS Bank Ltd
This is a computer-generated letter. No signature is required.
