CB role vis-a-vis defaulting fincos
View(s):Letter
This is a sad story of a long retired medical doctor, now on the wrong side of the eighties, a brother of a famous Hawaiian guitarist of yester year. He had invested a sum of Rs. 5 million in a registered finance company centrally located in Colombo.
As his relations are inviting him to live with them overseas he had tried to withdraw his deposit, at maturity only to be told that he could not get it. In fact when he wanted to interview the Chairman or one of his Directors none of them was willing to come down to meet the old gent.
The question depositors would want to ask the Central Bank (CB) is that since it is the duty of the CB to supervise these registered finance companies. Finance companies should be blacklisted if they are unable to return an investment made in the belief that the deposit would be returned at its maturity.
The second question is to whom should the matter be reported in order to obtain relief? The CB or the Financial Ombudsman?
Dr. Leo Fernando,
Pelawatte
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