Customers of insolvent S&L companies decry 'unclear' validation forms

Customers of insolvent S&L companies decry 'unclear' validation forms
Source: Ghana | Charles Ayitey | JoyBusiness
Date: 19-08-2019 Time: 07:08:37:pm
Customers thronged branches of collapsed Savings and Loans companies to begin validation process

Customers of some of the 23 collapsed Savings and Loans companies and finance houses thronged branches they save with to fill out forms by the Receiver for funds be paid them.

Already, some customers have expressed worry and frustration over the development as they met closed banking halls.

At the main branch of the defunct GN Savings and Loans Company, workers were nowhere to be found and customers, as usual, were disturbed.

“I came and met no worker and I need the money to fend for my family,” a distraught customer told JoyBusiness.

The case was not different at the premises of the defunct First Ghana Savings And Loans Company. With most clients being pensioners, clients complained over the validation form presented to them by the Receiver of the company – Eric Nana Nipa. 

“I don’t understand what the form requires of me to do, it is unclear. I was just told to fill what I can fill and present it to them,” a customer narrated.

So far, the Bank of Ghana (BoG) has given the assurance that funds are available to pay depositors of the 23 savings and loans companies and finance house companies that have been shut down. 

The Receiver appointed to manage the winding down of the 23 financial institutions Eric Nana Nipa has indicated that payment of validated depositor’s claims could happen before the end of August 2019.

Persons who have deposits with the collapsed Savings and Loans companies and finance houses have the next four weeks to submit their claims to the Receiver for payment of their claims.

A statement issued by the Receiver, Eric Nana Nipah said that payment will be hinged on validation for the scheduled period.

The statement amongst other things alluded to a Creditor Administration process which comprises; Submission of Proof of Debt forms, validating and agreeing to claims as well as Payments to Depositors.
 
The Proof of Debt forms could be obtained from the Receiver’s representatives at the branches of the S&Ls and Finance Houses where the Depositors and Creditors operated accounts.

The creditors will be required to attach relevant supporting documents such as copies of Deposit slips, Account statement, Investment certificates, and invoices concerning goods and services supplied) or photocopy of nationally recognized Photo ID such as Passport, Driver’s licence, Voter’s ID, National ID or notarized Power of Attorney.