Currently, nine (9) banks of the Legacy groups are closed already. Hundreds of employees lost their job and hundreds of thousands depositors lost their money. These people are simply the victims of the Legacy Scam.
At first, you would not be thinking that the products offered by the banks of the Legacy Group were illegal because there’s no single law that prohibits these banks to offer high interest rates to the deposits made by the depositors. These banks actually offered “Double Your Money in 5 Years” product.
Usually we call a product or service a scam if it is illegal or is done using deception. But the “Double Your Money in 5 Years” is simply a legit bank’s product characterized by a high interest rate of time deposit.
And who would not be enticed with the 20% or higher interest rate you’d earn from the time-deposit you made? You need money and You want it so much. So, if you have millions of money deposited at the other banks with just low interest rate, then you would end up transferring the money into the banks of the Legacy Group.
However, this legit banks’ product became a scam in the sense that the depositors were made to believe that the banks could really pay them the interest without the risk of losing the money.
I believe that most of the depositors under the “Double Your Money in Five Years” product were at first doubtful if they could really double their money. But the marketers of this product were simply good in convincing them that they could really get what had been promised.
Only this June (2008), one of our relatives told us how confident he is that after 5 years his 8Million money would be doubled. This is because, according to him, he talked the owner of the bank and he was assured that he would be successful in doubling his 8Million in just five years.
And now, where is the assurance? He might have received already part of the payment on the interest made by his 8Million, but his capital is burried somewhere as these banks of the Legacy Group are closed already.
What should he do now? Of course, he can claim the 250,000 deposit insurance from the PDIC and the rest of his capital will be lost forever.
Some depositors told us that their millions of money were divided into several accounts of 250,000 each under the same name. But the problem is, based on my understanding (correct me if I’m wrong), the PDIC will pay 250,000 PhP not on per accounts basis but on per depositor. So, whether you have 10 accounts under your name in that particular bank, you will only receive 250,000PhP from the PDIC.
I am very much thankful that I don’t have millions of money. I was saved from this kind of scam…
- Legacy Assurance Scam