Free money? Why you can't run away from BSP
17 April 2023
MICHAEL KABUNI
| Academia Nomad
PORT MORESBY - On Easter weekend, Bank South Pacific unintentionally credited its customers an undisclosed amount of money due to a technological glitch as the bank attempted to update its systems.
After customers received notifications on their phones, about 30,000 people rushed to the BSP ATMs and withdrew an average K1,000 each.
Some people subsequently switched banks.
BSP has indicated that it will take back its money. If you withdrew money from your bank account and intend to ditch BSP, it’s not that easy. Here’s why.
The ATM withdrawals means you owe BSP money, and this information is now registered with the Credit and Data Bureau.
All financial institutions have access to this information.
If you are in a serious need and want to take out a loan from your new bank, let’s say Kina Bank, your new bank will refuse the application because you still owe BSP money.
This even applies to savings institutions such as NCSL which allows for members to borrow.
The success of your loan application is determined, among other things, by your credit history. Right now you don’t have an impressive one.
BSP still has your details and you will continue to receive emails, calls and letters from BSP asking you to repay any borrowings.
If you intentionally avoid communication and do not repay, BSP can report it as an offence.
When you first opened your bank account you provided the bank with your contact details and used a formal identification.
For people working, the last thing you want is to be taken in for questioning by uniformed police in front of your colleagues.
When the court ruling goes in favour of BSP, as it certainly will, you will have to repay the money.
Apart from Port Moresby and Lae (and perhaps Mt Hagen and Rabaul), BSP is the only bank with a presence in most provinces and districts. You cannot escape immediate deductions from BSP.
It’s even difficult for students and the unemployed. The law will find you. Days of reckoning will come.
BSP made K1.136 billion in profits in 2022 and will arm itself with lawyers to get its money back.
So what should you do about this situation?
Go to the nearest BSP branch, or the branch where you opened your bank account, or call them and arrange how you can repay.
Preferably you should repay the amount immediately. If you cannot, arrange for fixed amount to be deducted from your account.
BSP has its limitations (and there are many), but the fact is that you withdrew money that didn’t belong to you.
You did this intentionally. You must return that which is not yours.
This just confirms what we already know.
The average person in PNG is no different to their countrymen in parliament and executives in government departments and state owned enterprises.
Posted by: Kindin Ongugo | 19 April 2023 at 07:07 PM
It's almost as sinister as our major banks invoicing dead people.
Posted by: Bernard Corden | 19 April 2023 at 01:24 PM
Simon, I'd suggest that people thought the governments and the banks rip us off so here is an opportunity for us to get revenge and make a few kina.
Posted by: Philip Fitzpatrick | 19 April 2023 at 10:01 AM
If only the politicians in the great Haus Tambaran would return what is not theirs!
Posted by: Ruben H Pandihau | 19 April 2023 at 09:06 AM
This issue boils down to simple honesty. If the people knew they have no money in their accounts, they would be honest to themselves and not withdraw money, that is not theirs.
But they were carried away by media hype and withdrew, knowing in their innermost soul that the money was not theirs.
They felt no pangs of their conscience and they were not afraid to shamelessly withdraw money that was not theirs.
Now the dust has settled and the truth is out, they must bear the consequences of their foolish choice.
Posted by: Simon Davidson | 17 April 2023 at 11:21 AM
"You did this intentionally. You must return that which is not yours."
That would be an interesting proposition to put to quite a few PNG politicians.
Posted by: Philip Fitzpatrick | 17 April 2023 at 09:43 AM