Thursday, October 29, 2009
Not allowed to withdraw the investment
Dear Mr. Tan,
An investor who is now unemployed and in her late 50s has put a large amount of her life savings on an investment which "pays on yearly basis" with a land banking company X. On maturity, she wanted to cash out part of her investment but was told by X that she must renew all into the 6 months investment. When she insisted that she want to take out some, she was scolded by X's director, that she was a fool.
Upon hearing this from her, I am very angry about this company. I could not understand why they treat their customers like that. If we put our money in banks fixed deposits or any regulated investment products, nobody can stop us from renewing or surrendering our investment upon maturity because it's our money.
REPLY
Please ask the investor to lodge a complaint with the Commercial Affairs Department. I believe that there is a law to prevent companies from taking deposits on interest, unless it is licensed as a financial institution.
An investor who is now unemployed and in her late 50s has put a large amount of her life savings on an investment which "pays on yearly basis" with a land banking company X. On maturity, she wanted to cash out part of her investment but was told by X that she must renew all into the 6 months investment. When she insisted that she want to take out some, she was scolded by X's director, that she was a fool.
Upon hearing this from her, I am very angry about this company. I could not understand why they treat their customers like that. If we put our money in banks fixed deposits or any regulated investment products, nobody can stop us from renewing or surrendering our investment upon maturity because it's our money.
REPLY
Please ask the investor to lodge a complaint with the Commercial Affairs Department. I believe that there is a law to prevent companies from taking deposits on interest, unless it is licensed as a financial institution.
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