The central bank last week also placed LBC’s assets and affairs under receivership, and designated the Philippine Deposit Insurance Corporation, or PDIC, as receiver.
But LBC Express Inc. Saipan office is informing its clients on island that a system for conversion has already been adopted for LBC ATM “Bilis,” or Fast, accounts.
Family members in the Philippines can visit any of LBC’s 1,000 branches in the country, and claim their: 1) Instant Peso Padala or remittance, 2) door-to-door, or 3) credit to bank, which will include the balance from the remittance. LBC clients have to bring their ATM and two valid identification cards.
“In our desire to ensure that no customers will be affected with the situation of LBC Bank, we shall be paying out the remittance balances left to all our ATM Bilis and Remcard holders,” said executive vice president for global remittance Janet Tayag-Ong, in a policy directive to its international customer associates issued on Sept. 13.
The LBC policy directive said Remcard is a similar service to ATM Bilis but offered in the Philippines only.
“These procedures only apply to our remittance ATM Bilis and Remcard issued cards and not the regular ATM or deposit accounts. The regular ATM or deposit accounts shall be covered by the procedures of PDIC which will be communicated to them,” Tayag-Ong said.
ATM Bilis customers are the only covered transactions for conversion. Credits to bank to LBC bank accounts are not covered.
LBC clients may call PDIC at 632-841-4000, email [email protected] or visit its website at www.pdic.gov.ph.
LBC Saipan office said it is extending its apologies for the inconvenience brought by the recent developments involving their sister company in the Philippines.
LBC Saipan assured its clients in the CNMI that it is making it “as easy as possible for all LBC Express Padala card holders.”
But on Thursday, one of their clients on island, who declined to be identified, said he was still waiting for LBC in the Philippines to make good of its assurance that his family could already claim the $110 he sent through ATM Bilis Padala from any LBC branch in the Philippines.
Another LBC client, a former guest worker on Saipan who is now in the Philippines, said she remitted money through LBC’s ATM Bilis.
“LBC failed to provide a tracking number so clients could claim the remittances,” she added.
She doesn’t know how she could claim her deposited remittance.
On Saipan, an LBC staffer told Variety their office made 3,492 transactions for their ATM Bilis Padala last month.
On Sept. 9, on same day the central bank of the Philippines placed LBC Development Bank under PDIC receivership due to insolvency, Saipan made 168 transactions.
According to its website, Luzon Brokerage Corporation, or LBC, was founded in the 1950s as a brokerage and air cargo agent. Eventually, the company operated as an air cargo forwarding service provider and was the first to introduce the 24-hour air cargo delivery service. LBC later offered express courier and money remittance service throughout the Philippines. Today, LBC said it “offers the widest coverage and network with over 800 strategically located branches nationwide and over 90 branches abroad.”
LBC Development Corp. acquired Banco Real Development Bank in June 1995 to become what is now known as LBC Development Bank.
LBC Development Bank was used by LBC Express Inc. as a conduit or the payout agency for its remittance business called LBC Remit Express.
