Guess-Mossimo franchise holder files complaint vs Citibank N.A. over check

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

The complainant, Victor Siasat — who also owns the Philippine market rights over Gold’s Gym and Gloria Jean’s Coffees — filed the complaint recently before the Bangko Sentral ng Pilipinas.

Reached for comment, Citibank said it could not discuss details of the account as doing so could lead to violation of the Bank Secrecy Law. However, the bank said it has always observed “very high standards” as far as taking care of their customers is concerned.

“In view of the Bank Secrecy law, we regret we can’t discuss the details of this transaction nor 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.

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

The check bounced, forcing Siasat to contact Kingdom Hotel Investments for apology and issuance of another check from his account with another bank.

In the complaint, a copy of which was obtained by the press over the weekend, Siasat said his checking accounts have been enrolled under a Citibank program called the “Citi Check Protect.” Under the program, when one account becomes insufficiently funded, it will be automatically funded by another account.

Siasat claimed to having more than the sufficient amount of money in all his accounts enrolled in the Citibank program.

His accounts with Citibank N.A. are in its branch in Alabang, Muntinlupa.

He said the very reason he applied for the program was protection from bouncing checks, noting the importance of good reputation in operating his businesses.

In the complaint, Siasat said he had to “go through the indignity of assuring Kingdom Hotel Investment of his intention and capability to continue with the purchase of the condominium unit and going through the process of replacing the check, with a check from one of his accounts in another banking institution.”

Siasat asked the BSP to impose administrative penalties on Citibank N.A.

“Manifestly, the “inadvertent oversight” of the Bank, as they so gratuitously put it, warrants the imposition of such sanctions or disciplinary action as the BSP may deem just and equitable in the premises, taking into consideration depositary banks primordial role and obligations vis-a-vis the trusting public and the stability of checks as negotiable instruments,” Siasat said.

The businessman called for a sanction on the bank, saying apology alone would not suffice given the “damage” done.