Domestic Deposit-Taking Institutions Fees

To help consumers make informed decisions during their transaction activities, CIMA publishes a summary list of fees charged by domestic deposit-taking institutions. The list is updated quarterly and includes fees such as cheque cashing, cheque deposits, cash withdrawals and deposits for account and non-account holders but does not include all fees charged by the above institutions. Please also note that the list has been updated to include The Cayman Islands Civil Service Association Co-Operative Credit Union which provide services solely to its members.

Although these deposit-taking institutions are currently registered and regulated by CIMA, CIMA does not have the authority to control fees and as such, charges are commercially driven.

Financial Transactions

Credit Cards

• Understand the terms and conditions of the credit card established by the institution.
• Study the credit card fee schedule and payment cycle in order to avoid late charges and penalties. A poor repayment history will have a negative impact on your credit record and it will be difficult to secure a loan in the future.
• Do not spend beyond your means.

ATMs

• Examine the ATM machine to ensure no suspicious devices are installed.
• Criminals may use a skimmer device to steal the information on the magnetic strip on the back of the ATM card. This device is usually attached in the same position where the card is inserted.
• Another scenario illustrates criminals placing a small pinhole camera directly above the keypad which records the user’s PIN number.
• A fake keypad can be placed on top of the original keypad which stores the user’s PIN number.
• Do not take away banknotes and/or ATM cards left behind by someone else. Contact police or representatives from the institution.
• Count banknotes immediately after withdrawal. Don’t assume the ATM will automatically dispense the amount you specified.
• When going overseas, exchange currency at a bank or reputable currency exchange firm as ATMs abroad may include heavy withdrawal fees.

Digital Transactions

• Ensure your online transaction is done with a website whose address begins with: https://. The “s” means the site is secure and it is an indication that the vendor can be trusted.
• Do not use public computers in cafes/libraries to do business online.
• When using your personal electronic devices to pay bills, shop online, or access your bank account information, ensure that the necessary firewall security programs are turned on.
• Check your account settings on a vendor’s website as some vendors store your credit/debit card information automatically. In the event that a vendor is being hacked while your card information is stored, the hacker will most likely have access to your card details. Confirm with the vendor that your card data is not being stored.

Fraud and Scams

• Be aware of individuals who intentionally misrepresent well-known businesses or government agencies in an attempt to obtain and solicit money and/or personal information.
• Be extremely mindful of imposters who send you information saying that you’ve won the lotto or the sweepstakes. One of the ways in which people are scammed is by the imposters telling victims that in order to get their winnings; they must first pay a release fee.
• Another way in which people are swindled is by fake charities asking for donations. Before donating to any charity, contact the relevant national charities association to ensure that the particular charity is a registered organisation.

Financial Planning

Teenage Years

• Consider a savings account in a bank or a share account in a credit union. Saving money can help you achieve a number of goals as you move into adulthood.        
• Having a job will enable you to save your own money. Regardless of the type of job, putting aside a small percentage of your income each month is beneficial.
• Identify your wants versus needs.
• Develop a positive relationship with your financial institution.

Middle Age Adults

• Set a monthly budget and stick to it. Developing a budget may be the mechanism that keeps you out of financial trouble.
• Have at least 6 months of your monthly income set aside for an emergency fund.
• If you find yourself in financial difficulty with regards to loans and mortgage payments, contact your financial institution immediately.
• Save as much money as you can to prepare for retirement.

Retirement Years

• Speak with a reputable financial advisor to help you create a plan that can meet your financial needs during retirement.
• Calculate your income from savings, pension schemes and other investment structures.
• Pay off large debts before retirement to avoid loan payments being taken out of your retirement income.
• Reassess your insurance coverage. By the time retirement comes around your insurance needs may have changed and perhaps needs modification.

Understanding Foreclosures

Losing your home is the last thing any homeowner wants to think about. However, by understanding the foreclosure process and what often leads to it, you can better position yourself to deal with potential problems that could impact your ability to service your mortgage and place your most valued asset at risk.

Foreclosure is a legal process that creditors use to satisfy your financial obligations to them. Not paying a debt, like a mortgage or second mortgage, can trigger a foreclosure. CIMA advises all individuals with a residential mortgage to take heed of the following:

1. Recognise early signs of financial trouble – Serious illness, losing your job, going through a divorce are all unexpected traumatic events that could impact your ability to make your mortgage payment. It is important to act immediately and proactively seek a solution.
2. Get in touch with your bank without delay – Banks don’t want your house, they want to help you keep it. Contact your bank at the first sign of financial difficulty to explore the options available to you. Even if you have not missed a payment, but are worried, now is the time to act.
3. Prioritise your spending – Cut or reduce nonessential expenses such as vacations, cable TV, entertainment, spa and salon visits. Once you are back on your feet you can add some of these expenses back into your budget.
4. Be organised – Open and respond to all notices; keep copies of everything; keep records of your last twelve payments on your mortgage; update your budget; keep your pay stubs.
5. Understand your options – If you find yourself experiencing financial hardship during mortgage payments, be sure to discuss all available options with your bank such as: Can I restructure my mortgage to add missed payments? Do I have enough equity in my home to refinance my existing mortgage? Will the bank agree for me to pay a lower sum for a short period while I seek other options to bring my loan current? Should I sell my home? Can I rent my home and stay with a family member?
6. Open and respond to all mail and communication from your bank – Your bank will help you keep your house if possible. Pay very close attention to all correspondence and communication from your bank and respond as soon as you can. 
7. Know your mortgage rights – Carefully review your loan agreement, research foreclosure laws and timelines and seek information on your bank’s policy on foreclosure.
8. Commit yourself to the agreed plan with your lender – Work closely with your bank’s representative to ensure that you stay on course with your plan.
9. Be proactive and get results – Everyone experiences difficulties at some point. Don’t let pride or fear stop you from seeking help and finding a solution that works for you.

Note: CIMA regulates all banks licensed in the Cayman Islands to ensure compliance with the regulatory laws and requirements, safeguarding the interest of all stakeholders. CIMA monitors the foreclosure process of all banks to ensure that the processes are in line with industry best practice. However, CIMA cannot, under normal circumstances, stop a residential property from being foreclosed if the bank has adhered to appropriate foreclosure processes. CIMA again advises individuals to understand the foreclosure process and the take heed of the steps identified within the Public Advisory.

Insurance Preparedness for Hurricane Season

Every year, we witness the impact and destruction of natural disasters around the world, such as hurricanes, earthquakes, tsunamis and storm surges. Here in the Cayman Islands, we have experienced our own share of natural disasters. While these events are difficult to predict, it is not difficult to prepare and offset financial losses before they occur.

With hurricane season approaching, property and motor vehicles owners should be mindful of the following:

1. Find ways to reduce any potential loss. Determine what you can do to protect yourself and minimise loss in the likelihood of damage. Maintain your property as best as possible as insurance companies exclude damage claims which may relate to maintenance issues that should have corrected before the incident happened.
2. Review the sum insured and verify that your property, including your contents, and motor vehicle are adequately protected. This is to avoid underinsurance penalties in the event of a claim. If your property is underinsured the full rebuilding or reinstating cost of your property is appreciably more than your sum insured, and you will not receive the full value of your claim, it will likely be reduced by the proportion of underinsurance. Be sure to include sufficient contents coverage to repair or replace your personal belongings. For example: If a property with a replacement value of $500,000 is insured for $400,000, and damages for replacement costs of $60,000 arise, the insurance company will only pay $48,000, and the balance of $12,000 must be borne by the policyholder.
3. Take time to carefully review and discuss the scope of your property insurance coverage with your insurance company or broker to better understand the level of coverage available for claims resulting from natural disasters. Structures outside of the dwelling of your home may require separate coverage by your insurance company. These may include fences, swimming pools, detached garages etc. Your insurance company is obligated to explain your benefits covered by the insurance coverage purchased.
4. Pay attention to the type of insurance policy offered as these may differ. All-risk policies may cover any claim that isn’t specifically excluded, while named perils policies cover only the claims listed in the policy.
5. Pay attention to the exclusions, deductibles and sub-limits of your property insurance policy as these may reduce or limit the level of your protection or make you responsible to pay a portion in the event of a claim. Very high deductibles automatically apply to all policies during most natural disasters. Review the terms and conditions of your insurance policy and pay particular attention to what is covered and not covered.
6. It is also good planning to clearly understand the extent of financial protection the policy provides in instances where there may be other events in the following days, weeks, or months after the first incident. Enquire whether there is any reinstatement of cover after a first claim for similar events.
7. Ensure the premiums for your insurance policies are paid before the due date to guarantee the policy remains active. Failure to pay will cause the cover to end, perhaps at a critical time. If payment terms have been extended to you, note that any unpaid premiums will likely be deducted from the value of your claim.
8. If you have a mortgage on your property, the lender will invariably require your property to be adequately insured. The lender may suggest some possible insurance companies to use, but the choice of insurer is in your hands. Additionally, mortgage providers and lending institutions often only require insurance to cover their loan amounts and not the full rebuilding costs of a property or market values for your motor vehicle. You should, therefore, be aware of the risk of underinsurance (if your assets are not adequately insured) as following a hurricane event, this could result in your insurance benefits being insufficient to rebuild your home or to replace your vehicle to a similar state that was in effect prior to the hurricane event.
9. Insurance companies may provide a discount when taking out more than one type of coverage with them. For example, property and motor. Hence, it is worthwhile to consider your options with several licensed insurance companies or use an authorised insurance broker.
10. Ensure that you have the correct contact details for your insurance company so that you know how to contact your insurance company following a catastrophic event.
11. Understand how to file a claim with your insurance company including the timelines within which a claim must be reported.
12. Insure your property or motor vehicle with a Cayman Islands Monetary Authority licensed insurance company. A full list of licensed domestic insurance companies and insurance brokers can be found  here.