I have received a letter from CIMB bank. Got one line i would like to ask for help.

'Kindly note that effective 1 December 2015, CIMB Bank will be imposing a monthly flexi charge of RM 40 ("Flexi Charge") per month if the *Utilisation Rate under your Flexi Loan facility falls below seventy percent ("70%").'

What is Utilisation Rate and how do we calculate it? Let's said we borrow 100k from bank and we have 30k average in the account, so the utilisation rate is 70%?
Is there any other bank impose this new change?

hi,

I received the same letter as well. Basically, the letter does mention the formula to come out with the utilisation rate:
Average Daily Flexi Account Balance (RM) = Sum of Daily Flexi account Balance / number of days in month

Utilisation Rate of the month (%) = Average Daily Flexi Account Balance / Current Facility Limit x 100%

In summary, the 'account balance' means how much you owe to the bank. As long as you still owe them 70% or more, then they won't charge you for flexi charges

they low yah one. the bank is going south now trying to squeeze their customers. diu...

Ya man...really ridiculous...70% is really low...

But i guess as all the banks are notdoing that well, all the banks will try to find ways to earn from their customers..

This post has been edited by zeroshift: Nov 1 2015, 05:53 PM

C bank restructuring many of their products. try to maximise their profit .

They terminated many of the credit card products because cost is too high for them.

Really, when good time C bank performed well but when the real test comes, you know who is the strongest ... (tiger and P bank)

Rm40 is too high!!! 300% increase. Perhaps RM15 is more fair.

Write to complain and also write to Bank Negara to complain too

this is apply for product, home flexi, only.
bad luck for customer who took this product.

ya..daylight robbery indeed..

if customers raise a ruckus with Bank Negara, they may just lower the increase or best case, do a U turn on it !

wah RM40 is really crazy

hopefully other bank not follow the trend

We, Retail Insight posted this few weeks bck.. shld warn others b4 they sign up


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Bank's motive is to increase the Non-Interest income, the profit margin for mortgage loan is low. So banks need to increase other sources of income

I can foresee other banks will follow

I have also received these letters.From RM10 to RM40.It is really a daylight robbery. Can we do something ? Write to bank negara ? How do we do it ?

victim here too...

Can opt to change from full flex to semi flex?

Wah it oso mean most loan takers has plenty of surplus fund parked in flexi acc wo.

It's somehow a gd fact thou. Gratz.

Looks like it, FD is 1% lower in terms of interest rate, so it make more sense to pump into the flexi loan

Since cimb gonna impose this new charges, would it make sense to change from cimb flexi to cimb semi flexi just to save on these extra rm40 per month charges?

I am already at my 30%.

U can refer to the letter of offer, bank has the rights to change interest rate/ charges

have to do based on calculation , charges needed to change.

as a workaround just remain the 30% , if there are extra money, just direct dump into the loan to offset the principle else put in another property

yes, in any contract, bank will be sure they are in the 'win' side.

only thing can do is to make some noise at Bank Negara and see how it goes.