Dear Claudienne,

I have had a line of credit, various credit cards and various accounts with Scotiabank since the 1990s. I have honoured all my obligations to the bank. I was, however, recently denied an increase in my line of credit, notwithstanding the bank’s admission that, in their words, I have had “an excellent track record” in servicing my obligations. To wit, I have never been in arrears in respect of any facility I have enjoyed with the bank.

The reason for denial is rather intriguing. I am classified as a non-resident. My Jamaican residence, however, has not changed.

I work and earn a salary in an institution overseas, while maintaining my Jamaican residence, and am more than capable of servicing credit with the institution.

I can only presume that this is a veiled manifestation of the new flavour of the month in international financial circles, that is, the de-risking of regional indigenous banks and the correspondent banking crisis that the Caribbean region faces. I see no other real or plausible explanation.

Sylvia Chrominska, in Scotia Group Jamaica’s 2015 Annual Report, boasts a 5.4 per cent increase in its Customer Loyalty Index year-over-year. With a net income after tax of $10.1 billion, representing a return on equity of 12.32 per cent, I will also assume that the loyalty of one long-standing customer with “an excellent track record” is rather dispensable in the bank’s grander scheme of “building [Jamaica’s] economic and social fabric”.

I take the liberty to state that “the customer is… a person who brings us his wants. If we have sufficient imagination we will endeavour to handle them profitably to him and to ourselves.” – Kenneth B Elliott.

Your assistance in this matter would be highly appreciated.

Kind regards,

OF

Dear OF,

We have been in communication with Scotiabank in regard to your concerns. Scotiabank said that in order to maintain customer confidentiality they could not disclose your credit arrangements to Tell Claudienne:

Scotiabank responded to our e-mail as follows:We hope that Scotiabank’s definition of those they regard as non-residents will assist you.

Scotiabank responded to our e-mail as follows:

“Once again Scotiabank would like to thank you for bringing the concerns of a customer to our attention. I refer to the letter submitted by a long-standing and loyal customer who has recently been denied an increase in his line of credit, as he is now classified as non-resident. We are not able to address any specific details in this matter as we must maintain customer confidentiality. Generally speaking, the issue of lending to non-residents is a policy issue based on its accompanying risks, which include but are not limited to:

1. Legal/Regulatory risks since the customer resides in another country whose laws could affect the Bank’s ability to recover losses in case of default.

2. Financial risk arising from increased costs to follow/contact customers in cases of default. Please note that a non-resident is classified as an individual who resides outside the island for at least nine months of each year. In this customer’s case, the fact that he works and earns a salary in an institution overseas, while maintaining a residence in Jamaica, places him in the non-resident category. It is the physical location of the individual proposing to borrow that is the determining factor. At this time, the only lending product available to non-residents is a mortgage facility.

We thank you for allowing us the opportunity to bring clarity to this issue. We very much appreciate the business of all our customers, and as far as is possible will make every effort to facilitate exceptions where possible.”

We hope that Scotiabank’s definition of those they regard as non-residents will assist you.

Good luck.

Have a problem with a store, utility, a company? Telephone 936-9436 or write to Tell Claudienne c/o Sunday Finance, Jamaica Observer, 40-42 1/2 Beechwood Avenue, Kingston 5; or e-mail: edwardsc@jamaicaobserver.com. Please include a contact phone number.