Borrowers told to pay loans even if banks have closed

DAVAO CITY – Borrowers of banks that have been shut down or closed by the government for various reasons should continue to pay their loan amortizations and other obligations, according to the Philippine Deposit Insurance Corp.

PDIC said the closure of these banks did not free borrowers from their obligations and they still have to pay their debts to the last centavo.

The state insurer issued a statement on this subject in the wake of yet another bank succumbing to insolvency, the Sarangani Rural Bank in General Santos City.

“The receiver of the closed Sarangani Rural Bank and other banks remind borrowers to continue to pay their loans,” the PDIC said in a statement issued on Friday.

However, the state insurance company warned borrowers against dealing with individuals claiming to be bank or PDIC representatives.

“Borrowers should only pay their loans and other obligations directly at any Philippine National Bank (PNB) branch,” it said.

PDIC said in the case of borrowers of the SRB, the account name to be used is “PDIC FAO BURL – SARANGANI RURAL BANK with Reference Number 373-0949-00013.”

“(PDIC) has discontinued the engagement of the bank’s collectors. PDIC has not engaged any person to collect the loans of the bank,” it added.

The Monetary Board placed SRB, a single unit bank operating in General Santos City, under PDIC receivership on December 5 after it was found to lack the resources to meet its liabilities, P45.57 million of which was in the form of deposits.

Its closure surprised its more than 2,000 depositors, mostly market vendors, as it was one of the oldest rural banks there and celebrated its 55th anniversary a few months earlier.

Since the start of the year, PDIC has been taking over rural banks and other financial institutions deemed insolvent or suspected to have engaged in anomalous transactions.

In November, PDIC took over such banks as the Rural Bank of Alaminos (Laguna), Inc.; the Rural Bank of Catubig (Northern Samar); the Rural Bank of Hagonoy; Rural Bank of Gainza (Camarines Sur) and Rural Bank of Majayjay (Laguna); and the Rural Bank of Sto. Tomas (Davao del Norte).