FOR IMMEDIATE RELEASE July 4, 2002
Ontario Savings Office sale plan has seniors “scared out of their wits”
Many seniors who bank at the Province of Ontario Savings Office (POSO) are scared and angry about the proposed sale to a private bank, staff say.
The Provincial Government today launched the process to seek a buyer for POSO, prompting a flurry of customer inquiries at the 24 branches, according to the Ontario Public Service Employees Union (OPSEU), representing 150 staff at the provincial savings bank.
The province of Ontario now guarantees all POSO deposits. But under the terms of the POSO sale legislation passed last week, federal deposit insurance coverage will cover only $60,000 on deposit.
“Our members tell us that there are customers up to 100 years old who have been using the savings office for decades,” says OPSEU President Leah Casselman. “Many of these customers are worried their life savings would no longer be insured if the branches are privatized.”
In some communities, POSO is the only financial institution for hundreds of miles. In others, it is the only alternative to the chartered banks.
“Savings Office customers know it generally pays better interest and has lower service fees than the banks, as well as personalized teller service,” Casselman said. “As a bonus the deposits are invested in the public services we all enjoy.”
The POSO serves communities across Ontario, from Pickle Lake to Windsor to Ottawa, with more than 100,000 accounts and $2.8 billion on deposit.
OPSEU and POSO customers are working together to fight the privatization of POSO.
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For more information:
David Cox 416-443-8888 x314
Or visit us at: http://www.opseu.org/campaign/posoindex.htm
