Why are there so many hanky panky going on there?
DBS deposits safe boxes in scrapyard
Dennis Chong
October 6, 2004
In a huge embarrassment for Singapore-based banking giant DBS Bank (Hong Kong), red-faced bosses came forward on Tuesday to say the bank would take "ultimate responsibility'' for the weekend blunder in which 83 safe deposit boxes filled with valuables were dumped and crushed at a scrap yard.
However, they refused to say whether the bank would compensate enraged box owners for their full losses - estimated at several million dollars.
The Monetary Authority said the incident was "serious'' and the Hong Kong Association of Banks chairman Peter Wong said the association would look into the incident.
The bank made an "unacceptable'' mistake, according to the Consumer Council which warned DBS it could be held liable for compensation despite contract terms to the contrary.
The bank's apology to customers came two days after angry clients first raised the alarm over the missing boxes. Some customers said on Tuesday they would not accept the bank's explanation and would press ahead with legal actions.
DBS said on Tuesday it was an isolated incident for which the bank would take "ultimate responsibility'' and remedy the losses incurred. However, it admitted that it was difficult to ascertain exactly how much had been destroyed as the bank did not know what was inside the boxes.
Last Saturday, 920 safe deposit boxes were removed from the vault at DBS's Mei Foo branch as part of renovation work being managed by an international safe deposit box company, Kumahira, according to Sunny Cheung, the bank's head of consumer banking. "During the renovation, we had to remove 920 safe deposit boxes. Unfortunately, they realised later that these included 83 boxes that were in use,'' Cheung said.
The boxes ended up in a scrap yard that bank officials refused to identify. Customers say they were told it was a private land fill operation and not a government site.
According to some customers, the bank sent a letter to them in August informing them of the renovation. They were told the safe deposit services would be suspended in September.
"How could this kind of thing happen? I have put my most valuable possessions into the safe. Who would imagine they would be dumped as trash? Some of the articles can never be replaced,'' one customer said.
"It is ridiculous. I put my stuff there because I trusted the bank. Was it a fire? An earthquake? Flood? Natural disaster? No. What a blunder,'' another said. Cheung said the dumping was "unfortunate'' and that the bank had reported the incident to the police.
A police spokesman confirmed a report had been received from the bank on Monday regarding "the handling of some safe deposit boxes''.
The spokesman also said five people had reported losses as of 5pm Tuesday.
Although the bank realised the mistake on Sunday, Cheung said it took time to gather enough information to report to the police and customers, but that most customers had been informed by Tuesday noon.
He added that the bank would do its best to recover the lost items but he was not sure how much could be returned.
Cheung said 300 people used the bank's safety deposit boxes in Mei Foo. On an Internet forum, a person who claimed to be working near a landfill, said bank staff had tried to stop the boxes from being crushed.
He also said he received HK$100 from a bank employee for returning legal documents he had picked up from the site.
Cheung confessed that bank officials had realised that some of the deposit boxes to be crushed were still in use but that it was too late when they arrived at the dump site.
"I think it is a special [isolated] case, but I don't think it will affect the confidence [of customers]. I believe the important thing is to settle the matter with the customers appropriately,'' bank association chairman Wong said.
The Monetary Authority said it believed the bank would respond to the problem swiftly.
Mr and Mrs Chan, who did not give their first names, were informed on Sunday about the loss of their valuables worth HK$100,000. The bank's explanation was not good enough, they said.
The Chans said they would lodge complaints with legislators and seek legal advice before taking further action. "I thought it was the safest place, but it turned out to be the most unsafe,'' Mr Chan said.
The Consumer Council said even though customers had signed a contract freeing the bank of liability for any damage to items placed in safety boxes, the bank may still be liable in this instance.
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DBS deposits safe boxes in scrapyard
Dennis Chong
October 6, 2004
In a huge embarrassment for Singapore-based banking giant DBS Bank (Hong Kong), red-faced bosses came forward on Tuesday to say the bank would take "ultimate responsibility'' for the weekend blunder in which 83 safe deposit boxes filled with valuables were dumped and crushed at a scrap yard.
However, they refused to say whether the bank would compensate enraged box owners for their full losses - estimated at several million dollars.
The Monetary Authority said the incident was "serious'' and the Hong Kong Association of Banks chairman Peter Wong said the association would look into the incident.
The bank made an "unacceptable'' mistake, according to the Consumer Council which warned DBS it could be held liable for compensation despite contract terms to the contrary.
The bank's apology to customers came two days after angry clients first raised the alarm over the missing boxes. Some customers said on Tuesday they would not accept the bank's explanation and would press ahead with legal actions.
DBS said on Tuesday it was an isolated incident for which the bank would take "ultimate responsibility'' and remedy the losses incurred. However, it admitted that it was difficult to ascertain exactly how much had been destroyed as the bank did not know what was inside the boxes.
Last Saturday, 920 safe deposit boxes were removed from the vault at DBS's Mei Foo branch as part of renovation work being managed by an international safe deposit box company, Kumahira, according to Sunny Cheung, the bank's head of consumer banking. "During the renovation, we had to remove 920 safe deposit boxes. Unfortunately, they realised later that these included 83 boxes that were in use,'' Cheung said.
The boxes ended up in a scrap yard that bank officials refused to identify. Customers say they were told it was a private land fill operation and not a government site.
According to some customers, the bank sent a letter to them in August informing them of the renovation. They were told the safe deposit services would be suspended in September.
"How could this kind of thing happen? I have put my most valuable possessions into the safe. Who would imagine they would be dumped as trash? Some of the articles can never be replaced,'' one customer said.
"It is ridiculous. I put my stuff there because I trusted the bank. Was it a fire? An earthquake? Flood? Natural disaster? No. What a blunder,'' another said. Cheung said the dumping was "unfortunate'' and that the bank had reported the incident to the police.
A police spokesman confirmed a report had been received from the bank on Monday regarding "the handling of some safe deposit boxes''.
The spokesman also said five people had reported losses as of 5pm Tuesday.
Although the bank realised the mistake on Sunday, Cheung said it took time to gather enough information to report to the police and customers, but that most customers had been informed by Tuesday noon.
He added that the bank would do its best to recover the lost items but he was not sure how much could be returned.
Cheung said 300 people used the bank's safety deposit boxes in Mei Foo. On an Internet forum, a person who claimed to be working near a landfill, said bank staff had tried to stop the boxes from being crushed.
He also said he received HK$100 from a bank employee for returning legal documents he had picked up from the site.
Cheung confessed that bank officials had realised that some of the deposit boxes to be crushed were still in use but that it was too late when they arrived at the dump site.
"I think it is a special [isolated] case, but I don't think it will affect the confidence [of customers]. I believe the important thing is to settle the matter with the customers appropriately,'' bank association chairman Wong said.
The Monetary Authority said it believed the bank would respond to the problem swiftly.
Mr and Mrs Chan, who did not give their first names, were informed on Sunday about the loss of their valuables worth HK$100,000. The bank's explanation was not good enough, they said.
The Chans said they would lodge complaints with legislators and seek legal advice before taking further action. "I thought it was the safest place, but it turned out to be the most unsafe,'' Mr Chan said.
The Consumer Council said even though customers had signed a contract freeing the bank of liability for any damage to items placed in safety boxes, the bank may still be liable in this instance.
[email protected]
