Two clients out of many agitated customers of SIC Life Savings & Loans Company Ltd (SIC Life S&L), formerly SIC Life Trust Finance Limited, have filed writs of summons at the High Court seeking an order of the court to compel the company to pay them the maturity values of their investments on the due dates which according to the plaintiffs have elapsed.
Two of such clients (whose identities are withheld) in their writs are demanding the payment of their matured investment values of GHc 544,876.71 with a due date of 14th October 2022 (for client one) and GHc 280,541.00 with a due date of 11th July 2022 (for client two).
According to the statement of claim of client one, he has made several demands on SIC Life Savings and Loans but the company has failed to pay back what is due him and that unless the court compels them to pay him, the company will not do same.
On the part of client two, she indicated in her statement of case that SIC Life S&L agreed with her to pay the maturity value at GHc 100,000.00 per month beginning 27th July 2022 until the debt was retired.
However, client two went on to explain to the court that SIC Life S&L, after paying the first installment of GHc 100,000.00 on 27th July 2022, the company has failed to make any of the subsequent payments despite her several demands to do so.
Reliefs Sought
The two clients of SIC Life S&L are therefore seeking four reliefs from the High Court. According to the clients, firstly, they are praying the court to order SIC Life S&L to pay the sums due them for their investments placed with SIC Life Savings and Loans.
Secondly, they are praying the court to compel SIC Life S&L to pay them interests on their investments at the prevailing commercial rates from their due dates until the final payment. Thirdly, they are asking for costs, and lastly, any further orders as the court may deem fit.
Regulators Rescue
The developments at SIC Life S&L appear to reflect the happenings in the banking sector, which necessitated the banking sector clean-up that cost the state over 20 billion Ghana cedis.
Indications are that, beyond the two clients who have filed these writs at the High Court, there are several other clients who are also demanding their investments and maturity values from SIC Life S&L.
SIC Life Company Limited, the parent company of SIC Life S&L, as well as the Regulator, Bank of Ghana (BoG), may have to step in and rescue the developing situation.
SIC Life Savings and Loans Company Limited was licensed by Bank of Ghana under the Banking Act, 2004 (Act 673) on 27th July 2010 to operate the business of a finance house.
The company received the license to operate as a Savings and Loans on 15th July, 2015. SIC Life S&L is a wholly owned subsidiary of SIC Life Company Limited, Ghana’s leading life insurance company.
The short to medium term strategic priority of the company is to become a highly profitable non-banking financial institution that is able to deliver sustainable returns to its shareholders by offering high quality and innovative products and services with competitive interests.
With the current debt restructuring program by the Bank of Ghana, financial sector is set to face many problems. As such, things will only get worse for SIC Life S&L. However, many investors will be hoping the company navigate the storms and honor it’s payment obligations.
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