The Philippine Deposit Insurance Corporation (PDIC) has issued a reminder to borrowers of the recently closed Cooperative Bank of Bohol (CBB) to fulfill their loan obligations, despite the bank’s closure.
In a news release dated July 26, 2024, the PDIC, acting as the statutory receiver for the closed bank, emphasized that borrowers must continue to repay their loans and should only transact with authorized PDIC representatives.
“PDIC has not engaged any person, agent, or agency to collect the loan payments for and on behalf of the bank,” the corporation said.
To incentivize repayment, PDIC is offering borrowers the opportunity to settle their loans through the enhanced PDIC Closed Bank Loan Incentive Program (CLIP). This program provides “substantial discounts” for qualified borrowers who opt for a one-time cash payment.
PDIC outlined several payment methods for borrowers, including an online payment system via the LinkBiz Portal, direct payments at Philippine National Bank (PNB) branches, postal money orders, checks, and in-person payments at the PDIC Public Assistance Center in Makati City.
For payments made through PNB branches, borrowers are instructed to use their assigned Account Reference Numbers (ARN) on payment slips.
“The ARN should be indicated in the portion referring to ‘Card No., Subscriber’s No., or Policy/Plan/Reference No.,” PDIC noted.
The corporation also addressed the automatic application of deposits to past due loans.
“Deposits of borrowers who have past due loans with the bank are automatically applied to their loans, by operation of law,” PDIC said.
Borrowers with current loans have the option to apply their deposits against their loans to avoid accruing interest.
The Cooperative Bank of Bohol was ordered closed by the Monetary Board on July 18, 2024, through Resolution No. 818.B. The rural bank operated four units, including its head office in Tagbilaran City and branches in Dauis-Panglao, Inabanga, and Candijay, all located in Bohol province.
For inquiries, the PDIC has provided multiple contact options, including a public assistance hotline, an email address, and a Facebook page.
The corporation emphasized the importance of retaining proof of payment, stating, “PDIC advised borrowers to always secure copies of Official Receipts issued by the PDIC.”
The PDIC, established on June 22, 1963, by Republic Act 3591, serves to protect depositors and maintain stability in the financial system. Its roles include providing deposit insurance, co-regulating banks with the Bangko Sentral ng Pilipinas (BSP), and liquidating closed banks.
PDIC said it continues to manage the aftermath of the Cooperative Bank of Bohol’s closure, focusing on loan repayment and borrower assistance.