SINGAPORE — Private cord blood bank Cordlife has started reaching out to affected parents to offer refunds, The Straits Times has learnt.
Parents whose cord blood units have been damaged have received letters from Cordlife from as early as Feb 5 for refunds on annual fees paid in 2022 and 2023.
However, some parents are not happy with the refund offered, and are not accepting it. Instead, a group of under 100 aggrieved parents are pushing ahead with their plans to pursue legal action.
A number of cord blood units — under 2,200 — in one of Cordlife's storage tanks were damaged and rendered unsuitable for stem cell transplants due to improper storage.
In letters seen by ST, parents who have been paying their storage fee annually have been offered refunds of $537.50, which include fees and GST for the two years.
To initiate the refund process, parents have to complete an online form, said Cordlife's outgoing group chief executive officer Tan Poh Lan in the letter. The refund will be processed within three to four weeks of the company receiving their details, Ms Tan added. The company will also waive all annual fees from 2022 until the end of the contractual term, she said.
In the letter, Ms Tan also reiterated that the company will make every effort to find a suitable replacement cord blood if a transplant physician determines that the stored cord blood cannot be used for approved cord blood transplants solely due to the stem cells not meeting viability criteria.
"The refund is definitely not enough. It just feels like they want to give us that $500 plus and close the case," said special needs educator Bobby Lim, 54, whose 15-year-old son's cord blood unit was damaged.
To add insult to injury, Mr Lim said he was alerted to the damage to his child's cord blood only after receiving the refund letter in early February. Prior to that, the company had not sent him any letters or e-mails, he said, and so he assumed he was not affected.
Mr Lim had paid over $2,000 in enrolment and processing fees when he signed up for the cord blood banking service in 2009 and was charged annual fees subsequently. He said that the minimum the company can do is to refund him all the fees he had paid for the damaged unit. Mr Lim has another son, an 18-year-old, whose cord blood unit is pending investigations.
A retiree in his 50s who wants to be known only as Mr L.T. pointed out that initial investigations by the Ministry of Health (MOH) revealed that lapses had begun as early as November 2020.
"The refund is not from the start of the incident, and even if it was, it's still ridiculous," said Mr L.T., who has the cord blood of three children stored with Cordlife. One unit is damaged, another is undergoing investigations and the third is unaffected.
A single mother who wants to be known only as Ms T said she was informed of her child's damaged cord blood unit when she approached the company to extend the service agreement for her 15-year-old daughter's cord blood unit on Dec 4, 2023.
The 43-year-old signed up for a 10-year package with Cordlife in 2009 for her daughter and had paid over $2,400 then.
She later renewed the agreement for another five years for about $1,300, and was looking to extend it, so her daughter would be covered till she was 21.
"I cried when I heard my daughter's cord blood unit was damaged, because this is something that can save lives in case anything happens in the future," said Ms T, who added that she tried asking for a full refund of the fees she paid.
In an e-mail sent to Ms T by Cordlife on Dec 18, the company rejected her request for a full refund, offering only a return of fees in 2022 and 2023.
A company representative said in the e-mail: "Prior to this incident, we were fully accredited and in compliance with regulations. We've maintained the highest standards in ensuring the optimal conditions for storage of your child's cord blood."
Said Ms T, who has yet to receive a letter on the amount she will be refunded: "This is not acceptable. It's not about the money that we've paid, it's about the principle."
For another parent who wanted to be known only as Madam K. Ong, a full refund is not enough. The 45-year-old working in the logistics industry also wants compensation for her child's damaged cord blood unit.
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"Some parents are worried that Cordlife might go bankrupt. But my thinking is, if my cord blood can't be saved, I would want compensation. I don't think Cordlife would be able to help us find a suitable replacement cord blood if anything happens. How can I trust them?" said Madam Ong.
She is among a group of 70 people who attended a town hall meeting for parents on Jan 24. The event was organised by parent volunteers running a Telegram chat group called Cordlife Parents Recourse.
Mr L.T., one of the volunteers, said that the group is hoping to pursue legal action to seek recourse against Cordlife, including a full refund and compensation, and also further assurance on Cordlife's promises to help parents find a suitable replacement if the need arises.
"We are in the process of finalising the consensus of what we want to achieve before going to the lawyers officially... We hope we can reach out to more people, because there are about over 2,000 cord blood units affected. I am sure there are many out there who may not know what to do," said Mr L.T.
In response to queries from ST, a Cordlife Singapore spokesman said that the company has been keeping around 1,800 affected clients updated regarding its course of action and has communicated with them individually regarding a refund or fee waiver offer, depending on their payment plan with Cordlife Singapore.
Testing is still ongoing for cord blood units in the six other tanks affected by irregular temperature readings, and updates will be ready at the end of March.
"We truly appreciate the patience of our clients while we complete this testing process and want to convey our sincere apologies for the distress caused by this situation. Throughout this period, we have been working closely with MOH to strengthen our laboratory processes, procedures and staff training to prevent this from happening again," said the spokesman.
The company announced on Feb 19 that it had appointed a new group executive officer, Yiu Pang Fai, with immediate effect.
Cordlife shares ended unchanged at 30 cents on Feb 19, before the announcement.
ALSO READ: 'Might as well put cord blood in my fridge': Parents slam Cordlife for lapses
This article was first published in The Straits Times. Permission required for reproduction.
