Capitalist system and its safeguards

Singapore adopts the capitalist, free market system that prevails in America. However, the American system has the following safeguards for consumers:

• If retail investors bring up a case against a financial institution and loses their case, they do not have to bear the legal cost of the other party.
• Some lawyers in America are willing to bring up the case on behalf of the retail investors on a "success fee" basis. The lawyer will bear all the expenses and will only charge their fees and expenses on the successful outcome 
• If there is sufficient merit, the attorney general will take up the case on behalf the retail investors, rather than leave it to them to fight the financial institution on their own. The attorney general is the lawyer for the people, as well as the lawyer for the government.

If Singapore had the same safeguards, the retail investors of the DBS High Notes would not have to suffer the outcome that they faced yesterday, when their case was rejected by the High Court judge and face the prospect of paying large legal fees, in addition to losing their invested principal.

Tan Kin Lian

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Court case on DBS High Notes - legal fees

In passing the judgement on the DBS High Notes case, the judge indicated that he will be giving a ruling on cost at a later date. This ruling will determine how much of the legal cost incurred by DBS will have to be paid by the investors.

It will be honorable for DBS to bear its own legal cost entirely and to ask the judge not to pass the cost to the investors. After all, the investors had lost a lot of their savings by investing in the High Notes that were created by DBS and marketed by DBS. If DBS does not make this request, I hope that the judge will decide that each party should bear its own cost, in the light of the circumstances.

Tan Kin Lian

Dispute on interest rate with NTUC Thrift

Dear Mr. Tan,
I was Ntuc thrift member for some years till recently, Thrift sent letter to me to cease all my accounts as they recently did a clean up and flagged that I was no longer a member. As my 2-yr FD matures in 2012, they agreed to pay on the interest rate for the invested period at the interest rate for tenor 9 month. Is this fair? Should they pay at the original interest rate despite reduce tenor? 
Alex

They should allow you to continue the 2 year tenure and pay you the agreed rate. If they wish to terminate earlier, they have to discuss with you on what is a fair rate - which should be the same interest rate but pro-rated for a shorter period.

Tan Kin Lian

Who can I get help for Thrift to honour the original FD? MAS? I have already asked Thrift on the following occassions: 1) I spoke with head of operations 2) Appealed to CEO during follow up call 3) Copied my appeal to MCYS  I sought help from MCYS but as there is no contractual issue so there's nothing they can do.

Alex

If the people in charge don't care, there is nothing much that I can do.Sorry.
Tan Kin Lian

Can I go to MAS?
Alex

You can go to MAS or the Prime Minister, but they probably don't care also.
Tan Kin Lian

Life insurance policies sold to elderly, illiterate person

I spent one hour talking to an angry person. His mother was sold 2 life insurance policies 15 years ago by an agent (a family friend) who told her a pack of lies. They had approached the insurance company a few years ago, but the matter was not resolved. He sought my help to advise him on what he could do now.

Honestly, his grounds are weak. It was 15 years ago. It was the word of one person (his mother) against another person (the agent). To make matters worse, the agent could not be located.

He felt that it was most unjust. He related on why the life insurance policies were sold to his mother, who was illiterate and unsavvy. He asked for my views, as the ex-head of a life insurance company, on what the problem was - that caused this type of unpleasant situation. Was it due to the fact that the insurance agent were not paid a salary and had to earn a commission by telling lies?

I tried to answer his questions, but he appeared to be not listening. I told him that it was unfair for him to now place the burden on to me. I did not cause this situation, and had no power to address it. It is easy for the people in charge, such as the MAS or the member of parliament, to close their eyes and ears to the problem. Maybe, I should also do the same?

Tan Kin Lian

Message from Spa Victim

Dear Mr. Tan,


Thank you for helping to raise awareness. I am encouraged by your efforts to fight for justice for consumers and the common man.

In respect to the recent case where hundreds of millions of dollars are lost when True Spa and Subtle Senses stopped operations, below are 2 links for your readers' attention.

1. Here is the link to the newspaper report. This is an update on the case about True Spa and Subtle Senses.

http://www.singaporelawwatch.sg/remweb/legal/ln2/rss/legalnews/70016.html?utm_source=rss%20subscription&utm_medium=rss

2. There are about 20,000 consumers. We need to get as many people to come together as possible to go after the owners of True Spa who started this mess.

Here is the link to the facebook group - Victims of True Spa Subtle Senses

http://www.facebook.com/home.php?sk=group_170620749615018&ap=1#!/home.php?sk=group_170620749615018&ap=1

Many thanks for your time.


Spa Victim

Democracy rating

Singapore has climbed 9 rungs in the democracy rating, according to the Economist Intelligence Unit. Do you agree with the findings? SGEP

Ape Snap Dining Vouchers

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Note from Tan Kin Lian
I am helping my former student in SMU in marketing these vouchers in her first job after graduation. Please support her.