Dariofoo,

Tq very much for the reply for those having problems here. Salute you very much.

Can give some advise for my friend here ?

The Case :-

She already have the loan and serving the loan for 2 years. Within this year time, she had defaulted the payment for 2 months and subsequently wend to 3 months. The bank revised her interest from 4.2 to 9.1%. She went to the bank settled all the outstanding of Rm 12,000.00. When she asked for reduction of interest, the bank told her that she must pay promt payment for 6 months and the interest will revise back to normal.

She asking for my help to get legal advise.

My opinion, it's right to punish or raise the interest rate for non-regular payment, but when the person already get the money and pay ALL THE OUTSTANDING, would it be fair to revise back the interest rate ?

According to her, her monthly payment of RM 3,400 are increase to RM 5,300.00.

The bank is a foreign bank.

My questions :

Is the Foreign Bank have the right for themself in the event the customer defaulted payment, they can charge any interest they want or they have follow the BAFIA act for Non-Prompt customer behaviour ?

The offer letter i looked at indeed have clause 13. EVENTS OF DEFAULT.

The bank clause 13 under offer letter stated :

Notwithstanding your overall obligation to repay all outstanding amounts on demand by the Bank, the Facilities or any part thereof for the time being outstanding and unpaid together with interest thereon and al other monies secured by any security shall immediately become due and payable, and the security in favour of the Bank shall become immediately enforceable and exercisable by the Bank, without prior demand, and the facilities shall be cancelled and no further drawdowns or availability in respect thereof shall be permitted, in any of the following events, irrespective of whether such event is continuing ...



Is the statement above means that in the event i defaulted 3 months and bank can charge me interests rate up to their like ? Or the interest of 9.1% follow some sort of Banking Law ?

My conclusion is, there is a need to punish the customer, but until what extend ? Why the interest is not 6% or 7% ? I see the Bank are more like killing the customer than giving them a chance to something about the non-prompt payment customer.

Can give a little bit 2 cents on this matter ?

Tq very very much.

Thanks for the reply.

There is no clauses as in ADDITIONAL INTEREST/DEFAULT RATE.

In the interest clause :-

CALCULATION OF INTEREST

Interest on any sums advanced pursuant to the Facility for the time being hereby secured (including interest at the Default Rate as specified in clause 1(d) hereof, and any fees, charges, costs and commission relating thereto, shall be calculated on such rests as stipulated in the Letter of Offer as determined by the Bank, and at the end of the relevant interest or at such times or intervals as may be decided by the Bank, shall be capitalise and added for all purposes to the principal sum then owing and hsall thenceforth bear interest at the relevant Prescribed Rate and be secured and payable accordingly, whether before or after a court judgement or demand for payment have been made on you.

clause 1(d) :-

Additional interest at such rate(s) stipulated by the Bank from time to time in addition to the Prescribed Rate for the Facilit(ies)(the"Default Rate) and/or an administrative fee per transaction will be charged on all overdue installments or principal and interest on loans, fees, commissions and all other charges (including those which are due from your gurantor and/or security party in relation to the Facilities and/or under the gurantee and/or security party in relation to the facilities and/or under the guarantee and/or abny of the security documents not paid when due.


IS that means BANK CAN CHARGE ANY AMOUNT OF INTEREST THEY LIKE WHEN YOU DEFAULT 3 MONTHS PAYMENT ?

TQ.



This post has been edited by dumeort: Jul 31 2012, 09:17 PM