Tan Kin Lian's Blog: Loss of life savings

Friday, October 03, 2008

Loss of life savings

Dear Mr. Tan

My mother in law is 70 years old also a victim of the recent Lehman Brothers collapse. She worked hard as a cleaner and now still working at school canteen to maintain her income. She has been working almost her entire life and children gave her to save $100,000 put in hong leong mini bond series 9 on Aug (interest 4.3% not much difference from 3% insurance saving). She just invested 1 mth ago and did not even has a chance to receive 1st interest and whole saving collapsed.

I really felt sorry for her that she walked into wrong place at wrong time. The money was in FD with HLF till FM introduced mini bond to her and her daughter. FM told both of them that it based on only 6 entities which are fundamental well established (all singapore companies). She(FM) told them if any of the companies collapsed they will pay based percentage paid out.

How is Lehman brothers involved in this mini bond series 9they still unknown? because they do not understand overseas investment status at all. My mother in law only knew HLF, she always trust HLF because HLF always helping senior citizen folks to get better and high interest than other banks. My mother in law always praised HLF boss is a good boss. Till today her daughter did not tell her mother the true. She praying and hoping for good news to come. She hope MAS will help to get back the money. She not hoping for full pay out but at least 80% will be fine. The rest she will top up for her and let the whole issue rest.

MN

REPLY
You should help your mother in lodge to lodge a complaint with the financial institution that sold the product to her.

2 comments:

Anonymous said...: Very sad to read yr story.
A resp. people casuing such hardship to people must be feeling guilty.
Who are responsible for these?
If I am the one selling, I would be feeling guilty for the rest of my life!!!
Does these people has any...... at all????????; October 03, 2008 8:32 AM
Anonymous said...: Yes,
feelings the same here,
I convert the FD from HLF into buying the series 9, because I was assured that it was very safe and it pays a higher interest than their FD. Practically low or no risk !
The financial manager assured that it is very safe, did my risk profile - and I informed him that I had always put my money into FD only recently rather than savings account because it offers only 0.275%. He conduct a risk profile for me and He tick me very high on the portion of: to preserved captital sum and he still recommended me to buy the series 9 minibond because he mentioned that it is very safe. 4 strong companies and 2 countries can never collapse one, rated as very strong and safe companies, only less than 1% risk of anything going wrong for the companies and question me have I heard of any country collapse? Which I told him I don't think so that I had come across. He then mentioned that even if one of the company go wrong can still be switch to another strong company and he even mentioned that. Should he be taking full responsibility now for his recommendation ? Should Hong Leong Finance too be taking full responsibility ?

My hard earn savings, meant for buying medication for my treatment.; October 18, 2008 4:43 PM