Tan Kin Lian's Blog: Not allowed to withdraw the investment

Thursday, October 29, 2009

Not allowed to withdraw the investment

Dear Mr. Tan,
An investor who is now unemployed and in her late 50s has put a large amount of her life savings on an investment which "pays on yearly basis" with a land banking company X. On maturity, she wanted to cash out part of her investment but was told by X that she must renew all into the 6 months investment. When she insisted that she want to take out some, she was scolded by X's director, that she was a fool.

Upon hearing this from her, I am very angry about this company. I could not understand why they treat their customers like that. If we put our money in banks fixed deposits or any regulated investment products, nobody can stop us from renewing or surrendering our investment upon maturity because it's our money.

REPLY
Please ask the investor to lodge a complaint with the Commercial Affairs Department. I believe that there is a law to prevent companies from taking deposits on interest, unless it is licensed as a financial institution.

17 comments:

A Singaporean said...: It sounds like a tactic for them to avoid or delay returning the funds to the investor. Seems like a very common kind of complaint if one searches the internet.; October 29, 2009 8:17 PM
Anonymous said...: It is a PONZI tactic.; October 29, 2009 8:27 PM
Anonymous said...: Mr TKL
I am sure that the lawyer firm that is working for X will make sure that X can find some loophole in the law to allow deposits to be taken.

But surely, the lawyer handling this matter knows that X is taking the hard earned savings from retired people and are not paying them back as promised.

Can our lawyer act so shamefully to help X cheat retirees, take their money, make promises and don't pay back?; October 29, 2009 8:28 PM
Anonymous said...: I thought it has been previously written that if you complain to the CAD on landbanking, the CAD will ask you to get a lawyer?

Maybe the CAD had reviewed the cases and concluded it to be like a business contract, that is if one breaks the terms, it is not a criminal but a civil matter to sue to get things right.; October 29, 2009 8:31 PM
Anonymous said...: First of all why put money or so call invest in land banking ?
The movement you transferred the money to them your money is as cool as ice water .; October 29, 2009 9:09 PM
Anonymous said...: i hav related before this incident of oths cases, is typical of stupidity & face saving wantg by Se pple, report immediately such threat & cheat, but then again,tis agencies 'busy'with other things then just looking at stupid investment 'cheat',unless u prove it, otherwise another white elephant, btw, DO let the cat out of the bag so that other with similar cases will confront, THANKS to TKL blog again, else such incident will not have 'voice' to be heard, TKL, u always impress me with your 'work'
from jbeji....; October 29, 2009 9:25 PM
Anonymous said...: this company invites big soccer clubs and in attendance at such games are the highest office bearers of this countries govt. So the general public feels that this company is legal and will never do this.

I sympathize with this old lady. I hope we stop more such cases in our society. Can our countrymen and women wake up and get together against such foreigners who are ruining our old and young folk alike???? and they are sure that they are untouchable!! one wonders why the officials are still quiet? have they been given good tickets to the soccer game?; October 29, 2009 9:26 PM
Anonymous said...: Complain to MP --> refer to MAS
Petition to Ms --> refer to MAS
Complain to MAS --> refer to Fidrec
or refer to lawyers
Complain to CAD --> refer to lawyers.

Not a bad job. Pay the ministers millions and they help to direct heartlanders' problems in circle. Maybe the only reason to pay them millions is not to have the same problem of ridiculus expense claims like Britian.; October 30, 2009 12:27 AM
Anonymous said...: To anon 12;27,

You know for a fact there is no ridiculous expense claim like in Britain?; October 30, 2009 8:32 AM
Anonymous said...: It would be interesting to know if this lady was suggested this investment by a friend or family or bought it "cold". Unfortunately many land banking investments are sold on by related people in the early stages of enthusiasm and because they earn fees for bringing friends in.; October 30, 2009 9:10 AM
Anonymous said...: U want MAS to work?
U want CAD to work?
U want MP to work?
NO problem..
Make the problem BLOW by boardcast it to national TV or Newspaper...
I AM SURE THEY WILL ACT BY THE NEXT DAY!; October 30, 2009 11:04 AM
Anonymous said...: to anon..30/10..11.04am
u sure a not?this agencies not for u SE pple lar,for foreigner & PRs only..u muz be joking!u think TV & newspaper write for u arrh?wait long long, who u? u forget to add that media is also 'not working'for u low class pple..only this blog & kind TKL do so much for voices to be heard!& thank 'T Kong' & KwanYim we have a good man like him in SE lar..pray for him for long life, gd blessing also e opposite is true u kow,if everyone daily curse some regime,even if they live long, but the next world sure they suffer jiah lak jiah lak.,aiyah,y put money in foreign land & now lucky have TKL to advise,if lawyer fee..how much u pay now?next time, be smart, go to casino and gamble better lar..; October 30, 2009 2:21 PM
Anonymous said...: Don't people believe in the 'once bitten twice shy' mantra any more?; October 30, 2009 3:12 PM
Anonymous said...: 11.04 AM

Our country is governed by scholar
MPs in Parliament and scholar officials of institutions, and when problems crop up they do not have a book to refer to, so they tai chi it to the next institution.
They just do not know how to react
or work on, esp if something so sophisticated as landbanking business.; October 30, 2009 3:29 PM
Anonymous said...: In PRC, a person who make a complaint would end at IMH !; October 30, 2009 4:21 PM
Steve said...: UK Minister comments on Land Banking
here

Hambrook & Greenstock, which is now in administration, sold plots of greenfield land to UK investors at three sites at Sible Hedingham, Marlow, and Chalford.

The company bought the land for just over £600,000, and some 750 plots were then sold to investors for £5m.

The investors were told that the land would receive planning consent for development and would increase dramatically in value.

That permission was never granted and the plots have remained undeveloped.

Ian Lucas, Business Minister, said: "This sends a strong message to company directors who deceive and rip-off members of the public: we will investigate and take firm action against you.

"Investors should also be wary of any land-banking or other schemes which promise huge profits for little outlay. To use the old adage, if it sounds too good to be true, it probably is."; October 30, 2009 8:32 PM
Anonymous said...: I was approached to invest in land banking sometime ago. The sale agent promised attractive return after several years and showed me the schemes written by the land banking company.
After reading the agreement drawn by the company, I simply reject the invitation due to the following reasons:
1.The sale agreement has no law-binding for both parties.It is a useless paper in the law term.
2.The company has no profit /loss report for the past.We have no reasons to believe the company can keep the promise and follow the agreement.
3.There is no way to check the operation of the company. Worse, we have no way to check whether the company still exist or not.
CAD should check all land banking companies and be sure that they are not ponzy companies. These companies should be banned if found cheating complain against them. CAD should wake up now!; October 31, 2009 11:38 AM