David Chua Kok Tee Sues DBS Bank

CoffeeAhSoh · Sep 6, 2014

Businessman David Chua Kok Tee denies closing a DBS account which had an initial deposit of $135,954.43. -

Suit against DBS: Was account closed?

Selina LumThe Straits TimesSaturday, Sep 06, 2014

- See more at: http://news.asiaone.com/news/singapore/suit-against-dbs-was-account-closed#sthash.5nbz7Bty.dpuf

Mystery surrounds a DBS fixed-deposit account opened in 1983 by a prominent Malaysian businessman, who is taking the banking giant to court to claim money he says it owes him.

The bank's case is that Mr David Chua Kok Tee, 66, closed the account within two years of opening it.

But Mr Chua said he never closed the account, which had an initial deposit of $135,954.43, and was to be renewed automatically every month at the prevailing interest rate.

He said the account lay untouched for 29 years until he came across the original receipt two years ago, which led him to enquire about it.

DBS told him the account had been closed, but it could not provide any transaction details since records of closed accounts are not kept beyond seven years.

Mr Chua denied closing the account and sued the bank after it rejected his demands to return his money. He is now claiming the principal sum, plus interest accrued since April 1983, for an unspecified total in the six-day hearing which opened in the High Court yesterday.

Mr Chua is a property developer who holds directorships and appointments in commercial and administrative organisations in Malaysia.

He opened the fixed-deposit account in March 1983 as security for a safe deposit box facility with the bank. The original fixed-deposit receipt was kept in the box and retrieved with other items in June 2012, when the DBS branch terminated the facility and the box had to be closed.

Mr Chua wanted the fixed-deposit funds credited to his current account, but DBS could not retrieve records of the account.

After he complained to the Monetary Authority of Singapore in October 2012, DBS asked for more time to investigate. In January last year, the bank told him that its records showed the account had been closed.

Mr Chua, represented by Mr Tan Teng Muan, maintains this is not the case, noting that the receipt, which has to be presented to the bank for withdrawal, was in his personal possession.

But DBS, represented by Mr Tham Hsu Hsien, said the original receipt was defunct as it would be superseded by a new receipt that would have been issued when the deposit was renewed in April 1983.

The bank contends that documents will show the account was closed by 1985. DBS also argues that Mr Chua is barred from bringing the suit as he has passed the statutory time limit of six years.

[email protected]
- See more at: http://news.asiaone.com/news/singapore/suit-against-dbs-was-account-closed#sthash.5nbz7Bty.dpuf

CoffeeAhSoh · Sep 6, 2014

Bros what happened to the Fixed Deposit $$$ ?

chootchiew · Sep 6, 2014

Interesting case which I have been thinking many times - what happen if 1 day a bank tell us ,no you did not have this money, no record. Then how ?

halsey02 · Sep 6, 2014

The case is rather mysterious too, Chua Kok Tee, must be hiding "slush funds" over here...he can forget a FD receipt for, how many years? 29 years.

The average interest rate from 1983 - 1986 was around 5-6%, 1987 - 1999, around 4%, 2000-2007 was 2%, & so forth. In the 80's for his $136,000 approx principal, he would be getting around $8,000 + a year. The bank would have sent him correspondences that they have auto roll his FD & if he want to cancel & withdraw, give instructions by filling in the form & return to the bank or contact the bank.

Why would the bank want a FD deposit of $136,000 for opening a safe deposit box?? it is usually $100 or more & usually the amount to cover the cost of opening the box in case of default payment etc.

For 29 years he forgot.... dormant account after a number of years will cease interest the monies will be deposited into a holding account(s), & after making statutory enquiry ( forget the number of years)....they monies will be transferred to the bank P&L account.. or go into trustee accounts & kept for a number of years...& becomes the bank's assets..

For a person with $136, 000 in 1983 is a big sum, the average 'joe' out there can open a FD for $500-$1,000 is already a big deal, & better still does not remember he has that money is rather fishy! :rolleyes:

god_zeus · Sep 6, 2014

my mother also kena this
she had 700 dollars in OCBC bank
one day she went there
they said the account was closed
but she never closed it
and wondered who closed it

too bad it happened a few yrs ago
and I din know wat to do
if it was now
I would report to the police

chootchiew · Sep 6, 2014

god_zeus said:
my mother also kena this
she had 700 dollars in OCBC bank
one day she went there
they said the account was closed
but she never closed it
and wondered who closed it

too bad it happened a few yrs ago
and I din know wat to do
if it was now
I would report to the police

For your case, it was few yrs ago, the bank should show you prrof that account was closed with some signature or thumb print. ?

jw5 · Sep 6, 2014

Couple of points: :biggrin:

1. The bank will not require the original receipt to withdraw or transfer the funds. What is stated in the report is not strictly correct. And if the deposit was renewed over the years, there would be a transaction record of the renewal sent to the depositor.

2. And that's also why despite what people tell you about going totally online or paperless, it is still good to keep some record of your statement or latest transaction records. :wink:

chootchiew said:
Interesting case which I have been thinking many times - what happen if 1 day a bank tell us ,no you did not have this money, no record. Then how ?

chootchiew · Sep 6, 2014

jw5 said:
Couple of points:

1. The bank will not require the original receipt to withdraw or transfer the funds. What is stated in the report is not strictly correct. And if the deposit was renewed over the years, there would be a transaction record of the renewal sent to the depositor.

2. And that's also why despite what people tell you about going totally online or paperless, it is still good to keep some record of your statement or latest transaction records.

If David Chua is genuine case he could have lost all his hardcopy statements. There is no proof now.
I watched too much 無間道 thought 1 button proof all can delete :smile:

looneytan · Sep 6, 2014

That's why I keep my life saving in Ovaltine tin

... stay away from Sinkie Bank :oIo:

xingguy · Sep 6, 2014

Source: News24 archives

Human error 'embarrasses' bank
2004-10-06 13:26

Hong Kong - Safety boxes from a bank branch were taken away and crushed as scrap metal, leaving customers shocked and angry at the loss of their most valued possessions, executives acknowledged on Wednesday.

Embarrassed bosses at Singapore based DBS Bank (Hong Kong)say they will repay customers for their losses after 83 boxes filled with valuables were removed on Saturday by a contractor during renovations, then dumped and compressed in a junkyard.

Workers scrambled to recover cash, crucial documents and smashed jewellery from the scrap heap, but DBS said it's too early to say what its liabilities will be. Local media have predicted it will come to millions of dollars.

"It's a very unfortunate and regrettable incident," DBS spokesperson Catherine Ong said on Wednesday.

Ong acknowledged the bank might face difficulties in ascertaining exactly what had been inside the boxes.

Don't want fraudulent claims

"Of course we don't want to invite any fraudulent claims," Ong told The Associated Press by telephone. "If we feel some claims are dodgy, we will ask a lot of questions."

The bank believes the mix-up was the result of human error, with no foul play suspected, Ong said. But after the bank resolves matters with customers it plans a full internal investigation into what went wrong. Ong said it was too early to say if anyone would be fired.

As soon as the problem was discovered, bank employees and workers of a Japanese safe deposit box company, Kumihara, rushed to the scrapyard to see what could be salvaged, Ong said.

"We have recovered some of the valuables like certificates, some cash and jewellery and the recovery process is still going on," Ong said. Some of the jewellery had been smashed, she said.

Junkyard spotted money

The Sing Tao Daily and Ming Pao newspapers quoted a message circulating on the internet as saying people working near the junkyard spotted money, property deeds and commercial contracts in the area over the weekend.

"I saw a broken Rolex gold watch that had diamonds on it, and many photographs," said one man's online message, quoted by Sing Tao.

The 83 boxes were removed, along with 837 empty ones, as the bank was expanding the size of a local branch and replacing older, small safe boxes with new, larger ones.

Customers who lost treasured possessions or valuables were outraged.

"This is absurd," the South China Morning Post quoted one victim as saying. "I put my stuff there because I trust the bank. How could something like this have happened?"

The Hong Kong Monetary Authority, the territory's de facto central bank, said it was taking "a very serious view of this matter" and would keep a close eye on how DBS resolves it.

The authority expects HKMA to take "prompt and appropriate remedial actions and to compensate customers who may have suffered losses," a spokesperson told the AP on customary condition of anonymity.

AP

chootchiew · Sep 6, 2014

xingguy said:
Source: News24 archives

Human error 'embarrasses' bank
2004-10-06 13:26

Hong Kong - Safety boxes from a bank branch were taken away and crushed as scrap metal, leaving customers shocked and angry at the loss of their most valued possessions, executives acknowledged on Wednesday.

Embarrassed bosses at Singapore based DBS Bank (Hong Kong)say they will repay customers for their losses after 83 boxes filled with valuables were removed on Saturday by a contractor during renovations, then dumped and compressed in a junkyard.

Workers scrambled to recover cash, crucial documents and smashed jewellery from the scrap heap, but DBS said it's too early to say what its liabilities will be. Local media have predicted it will come to millions of dollars.

"It's a very unfortunate and regrettable incident," DBS spokesperson Catherine Ong said on Wednesday.

Ong acknowledged the bank might face difficulties in ascertaining exactly what had been inside the boxes.

Don't want fraudulent claims

"Of course we don't want to invite any fraudulent claims," Ong told The Associated Press by telephone. "If we feel some claims are dodgy, we will ask a lot of questions."

The bank believes the mix-up was the result of human error, with no foul play suspected, Ong said. But after the bank resolves matters with customers it plans a full internal investigation into what went wrong. Ong said it was too early to say if anyone would be fired.

As soon as the problem was discovered, bank employees and workers of a Japanese safe deposit box company, Kumihara, rushed to the scrapyard to see what could be salvaged, Ong said.

"We have recovered some of the valuables like certificates, some cash and jewellery and the recovery process is still going on," Ong said. Some of the jewellery had been smashed, she said.

Junkyard spotted money

The Sing Tao Daily and Ming Pao newspapers quoted a message circulating on the internet as saying people working near the junkyard spotted money, property deeds and commercial contracts in the area over the weekend.

"I saw a broken Rolex gold watch that had diamonds on it, and many photographs," said one man's online message, quoted by Sing Tao.

The 83 boxes were removed, along with 837 empty ones, as the bank was expanding the size of a local branch and replacing older, small safe boxes with new, larger ones.

Customers who lost treasured possessions or valuables were outraged.

"This is absurd," the South China Morning Post quoted one victim as saying. "I put my stuff there because I trust the bank. How could something like this have happened?"

The Hong Kong Monetary Authority, the territory's de facto central bank, said it was taking "a very serious view of this matter" and would keep a close eye on how DBS resolves it.

The authority expects HKMA to take "prompt and appropriate remedial actions and to compensate customers who may have suffered losses," a spokesperson told the AP on customary condition of anonymity.

AP

If this happens in DBS SG, is it consider an honest mistake ?

Papsmearer · Sep 6, 2014

halsey02 said:
The case is rather mysterious too, Chua Kok Tee, must be hiding "slush funds" over here...he can forget a FD receipt for, how many years? 29 years.

The average interest rate from 1983 - 1986 was around 5-6%, 1987 - 1999, around 4%, 2000-2007 was 2%, & so forth. In the 80's for his $136,000 approx principal, he would be getting around $8,000 + a year. The bank would have sent him correspondences that they have auto roll his FD & if he want to cancel & withdraw, give instructions by filling in the form & return to the bank or contact the bank.

Why would the bank want a FD deposit of $136,000 for opening a safe deposit box?? it is usually $100 or more & usually the amount to cover the cost of opening the box in case of default payment etc.

For 29 years he forgot.... dormant account after a number of years will cease interest the monies will be deposited into a holding account(s), & after making statutory enquiry ( forget the number of years)....they monies will be transferred to the bank P&L account.. or go into trustee accounts & kept for a number of years...& becomes the bank's assets..

For a person with $136, 000 in 1983 is a big sum, the average 'joe' out there can open a FD for $500-$1,000 is already a big deal, & better still does not remember he has that money is rather fishy!

Nothing fishy about this. For these type of people $136K is pocket change, even in the 1980s. These kind of people would have more than one accounts in DBS, and many accounts in many banks. for him to forget about $136K is understandable. And he is quite well known too. If the account was closed in the 90s or even early 2000s by DBS, a simple google search and public records search, would have found him. Also, if he had other accounts with DBS, they can sure track him. A big shot like him would have been assigned a private banker anyway. U telling me that with all this information I described out there, no one contacted him or place a call to him directly or to his company office? the smoking gun is that he still has the receipt. If he withdrew the money as claimed by DBS, the receipt would be in DBS's possession, not his.

Papsmearer · Sep 6, 2014

If this happened in a US bank, they would quietly apologize and settle up with the client. Only in Singapore, DBS is arrogant enough to count on the home court advantage given by the kangaroo court to win this case.

iluvgst · Sep 6, 2014

Dirty Bank of Singapore

Narong Wongwan · Sep 6, 2014

Papsmearer said:
If this happened in a US bank, they would quietly apologize and settle up with the client. Only in Singapore, DBS is arrogant enough to count on the home court advantage given by the kangaroo court to win this case.

Note the bank's main defense is that statutory time limit already over.
Can eat dun waste. Own mistake die die dun admit. Same motto as vile pappy masters.

PoliticalDialogue · Sep 6, 2014

This case throws up many questions. How much offshore funds from people around S E Asia and beyond lies within S'pore's banking system and has remained unclaimed over several decades, perhaps even half-a-century? I suggest it would probably be substantial because S'pore has always played the role of (and has been seen as a) safe haven within a turbulent S E Asia. And, unlike many other countries, S'pore banks have have always allowed almost anyone from abroad to open an account even if they are non-resident. Heirs of those people who come across FD receipts, savings account books etc, if they were to approach the banks about their forebears deposits what would they be told? What happens to accounts dormant (but not closed) for 20, 30, 40, 50 years? Do banks retain hard copies of accounts opened during the pre-digital age? Do they have a cavernous basement for that? Probably not, as space is at a premium in S'pore. Is there a statute of limitations on dormant accounts even if they contain millions of dollars? A statute of limitations on dormant accounts plus the terms & conditions for opening and maintaining accounts would probably be favourable to banks in any legal tangle.

chootchiew · Sep 6, 2014

looneytan said:
That's why I keep my life saving in Ovaltine tin

... stay away from Sinkie Bank :oIo:

I suggest you keep the ovaltine tin into a safebox with security pins :smile:

sochi2014 · Sep 6, 2014

Why he even cares about the money now if he bochup for so long?

rodent2005 · Sep 6, 2014

Narong Wongwan said:
Note the bank's main defense is that statutory time limit already over.
Can eat dun waste. Own mistake die die dun admit. Same motto as vile pappy masters.

What kind of crap is this? Does this mean that if you place a fixed deposit with a bank in Singapore with standing order to roll over P + I on maturity, after a certain number of years, the bank can keep your money just because you did not withdraw your fixed deposit?

looneytan · Sep 6, 2014

sochi2014 said:
Why he even cares about the money now if he bochup for so long?

other source ran out ... I also like that sometime

David Chua Kok Tee Sues DBS Bank

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