That is NOT ALL! This sotong bank is doing more to Squeeze, if you have late payment... beware...

I was charged RM40 for Flexi account, AND my monthly installment goes up from RM2600++ to RM3800++ (45%) started 3 months ago.

Due to my personal cash flow problem since end of last year... I am making payment for my housing loans with 2-3 months outstanding for Sotong Bank and other banks. I don't mind payment the late payment finance charges, and occasionally also paying for their panel lawyer letter for requesting the payment, as I understand that is what I need to pay for paying the housing loan late.

But, few months ago, Sotong bank representative called up and started to say that they have a NEW SYSTEM in place (how amazing they created this NEW system after GST and when many people are in hardship, they must have studied the morgage agreement template since many years ago, and found several ways to increase their revenue).

The new system will keep track of accounts outstanding more than 45 days, and once more than 45 days, they will automatically increase the interest to 8.5% default rate interest as per the Mortgage agreement that we have signed on. I kept my account updated with 1 months arrears for several months, then in August, due to some cashflow issue my arrears became 2 months again. Sotong bank straight away increase the morgage interest to default interest 8.5%, effectively increase my installment amount by almost 45%!! My other mortgage with other banks is still 2-3 months regularly, paying the regular interest and installment.

In this difficult time, is it just for banks to tighten up and started taking drastic action in 45 days instead of 90 days? I am already having trouble paying the morgage over the past few months... and now with the additional 45%, it put me in an even more difficult situation.

1. I understand that we have signed the thick Morgage agreement that is rather one sided, but usually the normal practice for other banks, they will not take drastic action, unless it is more than 3 months, but 45 days is such a short time. Even as a goodwill to its customers.

2. Sotong bank did not officially write to me to notify me of their action of increasing the interest, only warn they they will do by phone after their new system is in place. In fact they have not been sending out statement to me since February this year, when I asked, they say they have posted statement 2 times a year, but I never receive any written communication from Sotong bank directly. It seems like the increase can only be known after it has been imposed on the account by checking with them through the phone, or visiting the branch to print out the statement, seeing the interest has been increase to default rate.

3. Sotong bank says that in order for them to CONSIDER (request management approval) to drop back to normal interest rate, I will need to make the payment for all 3 months outstanding that I am now owing to them at the default rate of RM3700++ per months, then subject to management approval.

If myself or my friend have mortgage need again, will strongly advice to avoid Sotong bank at all costs.

Is it right for Sotong bank to do this? Shall I find ways to pay up to date, or where should I write to complaint in order to be effective?