Dear Atty. Angela,

I have been a loyal client of a local bank since 1995 where I have placed several time deposits for investment. In the agreement I signed with the bank, if the deposits are not withdrawn at maturity, this will automatically roll-over into interest-bearing accounts. Also, all time deposit certificates were needed to be presented in case there will be withdrawal. In 2002, I moved to the US and I completely trusted the bank to take care of my hard-earned savings. In 2024, I went back home to retire and upon checking on my accounts, I was surprised to find out that everything has been withdrawn — without my consent. Can the bank be held liable to return my investment and for moral damages?

Maggie

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Dear Maggie,

Yes, you may file a civil case for Sum of Money and Damages or in cases of fraud, a criminal case against the bank officer or individual who committed acts of misrepresentation.

It cannot be overemphasized that the banking business is impressed with public interest. The trust and confidence of the public to the industry is given utmost importance. Thus, the bank is under obligation to treat its depositor’s accounts with meticulous care, having in mind the nature of their relationship. The bank is required to assume a degree of diligence higher than that of a good father of a family. [1]

It is established that in every case, the depositor expects the bank to treat his account with the utmost fidelity, whether such account consists only of a few hundred pesos or of millions. The bank must record every single transaction accurately, down to the last centavo, and as promptly as possible.[2] As such, with this high level of duty and diligence imbued in banks, it is responsible to return the money invested upon strong showing that there were acts of fraud committed against the depositor.

In the case of Banco De Oro Universal Bank Inc. v. Spouses Antoninos, G.R. No. 273493 (23 April 2025), the Supreme Court affirmed the rulings of the Regional Trial Court and Court of Appeals returning the time deposit investment of Spouses Antonino. It was proven that lapses showed BDO’s failure to exercise the required diligence, especially given the large amount involved.

In addition, it also clarified that moral damages — for mental anguish, anxiety, embarrassment, and similar suffering — may be awarded even without bad faith or malice, as long as the bank’s negligence is proven.

Atty. Angela Antonio