Overview
The infamous issue about the collapse of the pre-need industry sent the dreams of hundreds of thousands of people trying to graduate college crashing down. Several years ago, and seemingly out of nowhere, accusations came flying from all directions about pre-need companies. According to the accusations, they were either bankrupt or nothing but a scam, depending on which company you are looking at. And since a large portion of Filipino families relied on these pre-need companies in order to send their children to college, widespread panic ensued the moment these accusations hit the press.
The biggest company to suffer was the pioneer in the industry, a company called College Assurance Plan or CAP. The CAP Family of Companies began in 1980 with the birth of its mother company - College Assurance Plan. CAP has since expanded its business to the areas of Pre-need Pension, Distance Learning, Health Maintenance, Life Insurance, Information Technology, Financing, Communications and General Insurance. It is a group of companies that the Filipino family can trust for an assured and better future – to hold on to as a true and reliable partner through the next millennium. It is also a growing and dynamic corporate family capable of serving each and every Filipino family's pre-need and insurance requirements.
They had the largest number of plan holders subscribed to their pre-need education plan compared to any other pre-need company. This company was brought to its knees when certain government officials of the Philippines, came out of nowhere and publicly declared that CAP was bankrupt. They questioned the company's use of their trust funds and had the Securities and Exchange Commission or SEC freeze their accounts.
Naturally, the families that had subscribed to CAP at the time were infuriated and began demanding their money back, canceling their subscriptions.