Trader files raps vs Citibank over bounced check

MANILA, Philippines—The owner of the Guess and Mossimo franchises in the country has filed an administrative complaint against Citibank N.A. for allegedly causing a check he had issued to bounce, causing him much embarrassment.

Complainant Victor Siasat, who also owns the Philippine market rights to Gold’s Gym and Gloria Jean’s Coffee, filed the complaint with the Bangko Sentral ng Pilipinas (BSP).

The check he issued, for P3 million, was for partial payment of a condominium he had bought from property firm Kingdom Hotel Investments.

The check bounced, forcing Siasat to contact Kingdom Hotel Investments to apologize and issue another check from his account with another bank.

In the complaint, a copy of which was obtained by the Inquirer over the weekend, Siasat said his checking accounts were enrolled in a Citibank program called “Citi Check Protect.”

Under the program, when the funds in one account run low, it would automatically be replenished from another account.

Siasat said he had sufficient funds in all his accounts under the Citibank program.

In his complaint, Siasat said he had to “go through the indignity of having to assure Kingdom Hotel Investments of his capacity to purchase the condominium and of having to go through the process of replacing the check with one from his account in another banking institution.”

Siasat said he wanted the BSP to impose administrative penalties on Citibank N.A.

He said an apology alone would not be sufficient given the “damage” done.

Reached for comment, Citibank said it could not discuss details of the incident as doing so could lead to a violation of the Bank Secrecy Law. The bank, however, said it had “very high standards” as far as taking care of its customers was concerned.

“In view of the Bank Secrecy Law, we regret we can’t discuss the details of this transaction or account. Citibank in the Philippines sets very high standards for customer service. We are committed to addressing the financial needs of our clients, and take the appropriate follow-up action when necessary,” the bank said in a statement.