Woman's $8.8m frozen by OCBC

OCBC says the elderly woman does not have mental capacity to make financial decisions. But what's wrong with withdrawing it own money from it own account? What's the point of having so much money banked with them when you can't get to spend it? What's wrong with OCBC? Maybe I've make the right decision that I don't bank with them back than.

A 91 year old woman, accompanied by her 43 year old adopted daughter, went to OCBC Bank in May, asking to close her account containing $8.8 million, but the bank would not let her. Instead, the bank, said it has doubts about her mental capacity to manage her financial affairs independently & froze her account despite her repeated instructions to take out her money.

As prudent bankers, it is duty-bound in law to take reasonable steps to ensure that it acts only on valid instructions, said OCBC. The bank's position: it will comply with her instructions as soon as she is shown to be mentally capable.

Madam Hwang Cheng Tsu Hsu, a retired teacher, then sued the bank to get back her locked-up funds. She first tried to apply for summary judgment asking the court to make a determination without the need for a full trial, but this was rejected. OCBC then took out a summons for Madam Hwang to be examined by a psychiatrist. But her lawyer opposed this application.

In a closed-door hearing on last Wednesday, an assistant registrar directed both sides to agree on a psychiatrist within seven days. Otherwise, the court will appoint one to examine Madam Hwang. Madam Hwang's lawyer, Mr Andrew Ee, said that they are appealing to the High Court against this decision.

In March, Madam Hwang was seen by a psychiatrist of 30 years' experience, who assessed her to be fit to make a will despite mild dementia. Mr Ee said he will also be making an urgent application to seek the release of funds to pay for her monthly expenses. The impasse between Madam Hwang and OCBC began in May, when Madam Hwang and her adopted daughter, Madam Amy Hsu Ann Mei, inquired about opening a joint account.

A couple of days later, a bank officer called Madam Hsu to say no. Later that month, the two women went to OCBC to close Madam Hwang's account. The older woman was brought to a conference room by a relationship manager for a face-to-face meeting with senior bank officials. Madam Hsu was not allowed in but she found her way to the room and left with her mother.

In the three months after this meeting, a flurry of correspondence between Mr Ee and OCBC followed. Mr Ee repeatedly wrote to the bank to close Madam Hwang's accounts but OCBC refused and insisted on meeting her face to face.

On Aug 15, OCBC wrote to Madam Hsu, raising doubts about Madam Hwang's mental capacity. OCBC said it will not accept any further instructions on all her accounts with the bank until these concerns are addressed.

On Aug 29, Madam Hwang filed a suit against OCBC for breach of contract. She wanted the High Court to compel the bank to give back her money.

In its defence, OCBC said that, at all times, it had acted in line with the duty of care imposed by them on law, to withold payment.

If OCBC have to payout the SG$8.8M now, think their shares might dip even further from the current SG$4.59. Their shares used to be around SG$8.