Are you planning to file a complaint against a pre-need plan company in the Philippines?
On the SEC website, there are instructions on how to file a complaint. There is also a complaint form which can be downloaded.
But you can use your own format as long as you include all the necessary details.
Here is a simplified version of the SEC procedures:
1. You can file your complaint against any pre-need company in the Philippines at the SEC office along EDSA in the Greenhills area. Submit your complaint to the Central Receiving and Record Division (CRRD).
2. Who can file a complaint?
The planholder, or the legal representative, or the beneficiaries (if the planholder is deceased)
3. Where is the complaint filed?
Submit your complaint to the Central Receiving and Record Division (CRRD) of the SEC.
4. Contents of the complaint
The complaint should be written. You can use the SEC complaint format which can be downloaded from the SEC website.
- name, address and contact number of the complainant
- name of the pre-need company, main address of the company, name of the person contacted (example: name of the salesperson)
- brief statement of facts: type of plan, effectivity, number of installments paid, total payments paid, significant dates, and other facts that will support your complaint
5. Issues to be resolved
The examples of issues are:
- non-payment of claim
- non-registration of pre-need company
- non-registration of pre-need plan
- refusal to reinstate pre-need plan
- inaccurate termination value
- mismanagement of trust fund
- illegal closure
- any other fraudulent act or misrepresentation done by the pre-need company, its representatives or salespersons
6. Brief statement of relief or solution being claimed by the complainant
In short, what do you want the pre-need company to do for you?
7. What happens after submission to CRRD?
The CRRD is mandated to forward the complaint to the Non-Traditional Securities and Instruments Department (NTD) within 24 hours or not later than the same hour of submission on the next working day.
8. What Happens at the NTD?
The NTD is mandated to number and docket your complaint. This will add your complaint to a list or register of complaints with codes for easy reference.
9. Mandatory mediation hearings
The NTD orders you, the complainant, and a representative of the pre-need company to appear in a mediation hearing not later than 15 days from receipt of complaint. The NTD will send a notice of mediation at least 5 days before the hearing.
If you fail to appear at the hearing without prior notice and justifiable reason, your complaint will be dismissed. If you attend the hearing, but the pre-need company representative fails to appear, NTD will resolve the issue according to your documents.
10. What happens if the mediation fails?
Both you, the complainant, and the pre-need company file position papers within 10 days from date of failed mediation hearing.
The position paper includes:
- statement of facts
- statement of issues to be resolved
- presentation of arguments (refer to documents and affidavits you attached)
- claims or solutions
The NTD will issue a decision not later than 10 working days from the date following receipt of the filing of the position paper. The NTD must state the basis of the decision.
The NTD will also forward a copy of the decision to the Compliance and Enforcement Department (CED) of the SEC within five (5) days from date of decision.
The complainant or the pre-need company can file an appeal of the decision within 10 days from receipt of the decision.
Lastly, the downloadable SEC complaint form has a notary public portion. So, if you use your own format, it is advisable that you have your complaint notarized.