8th July 2004, 10:08 AM
GIRO deductions with no approval
Any comments on this article? Personally I feel there is something seriously wrong and something needs to be done about the issue.
GIRO DEDUCTION WITH NO APPROVAL
Why does MAS allow practice by banks, insurers?
IN April, I received a call from a DBS Bank telemarketer who wanted to sell me an insurance policy offered by Aviva.
I told her to send me the forms and brochures and that if I was interested, I would sign up for the policy.
After receiving and reading the brochures, I decided not to sign up. I thought nothing of it.
But on July 7, I checked my bank statement and realised that there was an unauthorised inter-bank Giro (IBG) deduction from my POSBank account for an Aviva insurance policy that I had never agreed to buy.
I called the bank and was referred to Aviva.
The woman who answered said the form sent to me had indicated that if I did not reply to reject the offer within 14 days, it would be considered accepted.
This is the first time I have heard of this sort of acceptance method being used for a legally-binding agreement.
After an argument, she agreed to refund the amount they had deducted.
What puzzles me is how the bank could have processed the IBG transaction when I had never signed an authorisation form of any kind.
How can the Monetary Authority of Singapore (MAS) allow this kind of arrangement between banks and insurance companies?
I hope the relevant authorities will review and regulate such practices.
Yap Ee Hoe
8th July 2004, 10:20 AM
Raise this issue with CASE for them to take it up with bank concerned. At personal level, write in to the bank concerned and MAS to complain about the unauthorised deduction.
8th July 2004, 01:20 PM
Call in the new paper. They seemed to like this kind of news.
Make it big to deter those unethical business processes.
8th July 2004, 01:42 PM
This is a big issue, being the letter may be send to some who don't read or don't bother to read the letter.
I feel there is an element of criminal act on personal of DBS. You can collect all the document and evident, send an E-mail to Minister for Finance. I'm sure this issue will be look upon seriously.
You can find out where the respective e-mail of the ministers here.
Last edited by Vinnievinyl; 8th July 2004 at 02:02 PM.
8th July 2004, 01:48 PM
It seems that even public companies are behaving just like Singapore's toutish Big Bro... Arbitrarily charging and raising fees like it's no other people business.
8th July 2004, 10:48 PM
Originally Posted by DennisLee