Experts Weigh in on DBS Bank Digital Service Outage: Consumers Have Many Avenues to Initiate a Claim for Losses Sustained

Written by Team Farallon

  • Farallon Law Corporation
  • December 3, 2021

Author: Chen Mingyao
Posted on November 26, 2021, 00:56 AM
By MediaCorp Channel 8 News

Development Bank of Singapore (DBS) and POSB Bank’s digital services have been down for two days this week and services like transferring money are also unavailable. Lawyers interviewed said that if consumers suffer any losses caused by the outage, they can contact the bank to claim compensation or can even consider filing a class action lawsuit. However, because of the cost and effort of such a legal action, a lawsuit should be the last resort when the dispute cannot be reconciled or a large amount of money is involved.

DBS Bank’s digital services had been down since Monday, November 23, and gradually resumed yesterday, November 25. Although many users have been complaining online, we have yet to hear of any sizable financial losses so far.

The consequences of not being able to pay bills or make a loan payment would typically be a late penalty or other breach of contract, or even investment losses due to not being able to log in.

Mr. Nicolas Tang, Managing Director of Farallon Law Corporation, said in an interview with 8world News that if any of the above problems occur, consumers can contact the bank for compensation.

Or Seek Assistance from FIDReC for Mediation or Filing a Lawsuit

“If the bank cannot resolve the consumer’s complaint and the claim amount is below SG$100,000, the consumer can seek mediation from the Financial Industry Disputes Resolution Centre (FIDReC) in Singapore. If FIDReC is unable to mediate the dispute or if the amount is over SG$100,000, the consumer can consider suing the bank,” added Nicolas.

But Senior Lawyer Lam Kuet Keng believes that due to the contract terms between the consumer and the bank and the varying conditions of each case, whether a claim or lawsuit can be filed depends on if there is a clause in the contract that allows the consumer to claim compensation.

“Clauses like ‘The bank cannot be liable for problems beyond their scope of control’ are very common since the bankruptcy of Lehman Brothers (investment bank) in 2008.”

Hold on to The Evidence of Your Losses If You Decide to File a Lawsuit

Nicolas advised that consumers who want to file a claim for compensation or take the bank to court should keep evidence of their losses and prove that the losses in question arose because they were unable to access the service system.

But he again noted that a legal battle with a bank can be extremely expensive, time-consuming, and difficult, and should be the last resort.

On the other hand, Lawyer Zeng Rongtai from Chen Jiceng Law Firm suggested that if many consumers have indeed suffered financial losses, they can take a class action lawsuit to save costs.

But he also added that since the service disruption occurred only very recently, no losses have so far been reported, and their law firm has not received any related enquiries either.

Original article:


文: 陈明耀
发布: 26/11/2021 00:56









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