The Philippine Deposit Insurance Corporation (PDIC) announced that it had started mailing payment for deposit insurance to Banco Filipino Savings & Mortgage Bank (BF) depositors with account balances of P5,000 and below, with no outstanding loans and whose addresses are complete in the Bank’s records. Payment is in the form of postal money orders (PMOs). These PMOs can be encashed in more than 1,400 post offices and over 300 LandBank of the Philippines branches nationwide.

In a statement, PDIC said that as of end December 2010, accounts with balances of P5,000 and below make up 53% of the total number of deposit accounts maintained in BF.

“This is the first batch of payments and mailing of PMOs to depositors will continue daily. Please allow time for the delivery of the PMOs to your houses,” PDIC Executive Vice President Cristina Orbeta said. She reiterated that depositors with balances of P5,000 and below are not required to file deposit insurance claims, provided they have no outstanding loans and their addresses are complete in the bank records. Payment will be delivered by mail directly to their addresses.

She reminded that those who have outstanding loans and incomplete address will need to file claims. Likewise, depositors with accounts above P5,000 need to file claims. Claim forms were distributed during a series of Depositors’ Forums conducted nationwide. Schedule for filing of claims will be announced shortly. Orbeta said that though claims are not yet being received, PDIC is already preparing for the processing of claims. The deposit insurer said it targets to start payment for these accounts 120 days after bank takeover, or in mid-July.

“The speed of payout depends on the completeness and accuracy of records turned over by Banco Filipino to PDIC, the completeness of documents submitted by claimants, as well as the volume of deposit accounts to be examined.” Orbeta said.

“We reassure the public that we will pay deposit insurance for all valid accounts. The whole organization is being mobilized to fasttrack the claims settlement operations to pay these accounts as soon as possible.” she added. End