Dear CIMB Housing Loan Borrowers

All of you would have received notification that your BLR went up by 10 basis points (6.85% to 6.95%) in June.

I would urge all of you to send a complaint to BNM on this unjustified increase by CIMB as during this period, the other Big-4 namely, Maybank, Public and RHB did not increase their BLR.

The new Governor has obviously wanted to reduce the Borrowing cost by reducing the BLR and although CIMB has subsequently reduced the BLR from 6.95% to 6.75%, the increase from 6.85% to 6.95% is still unwarranted and I would urge all of you to complaint to BNM via bnmtelelink@bnm.gov.my

Yes, Banks have right to increase their BLR but let us also show our displeasure by complaining to BNM on this matter. But remember CIMB tried to suddenly impose a funding fee on their fully flexi loan but later retracted cos many people complaint.

Let's send the same message to CIMB again. Banks should only increase their rates when there is strong justification. Else due to high cost of refinancing, borrowers are effectively forced to pay unjustified higher rates and we as consumers must speak up for our rights.

PS - I only receive the notification almost 3-weeks after the BLR was increased and only managed to send my complaint letter to BNM this week.

Apologies if someone else has posted this before.

Update 1 - BNM confirmed receipt of Letter - 28 July 2016

Update 2 - BNM send CIMB instructiion to contact me to resolve the complaint and revert back to BNM within 2-weeks - 29 July 2016



This post has been edited by cfa28: Jul 29 2016, 08:02 PM

Please la. Not only Cimb increase. Other bank also increase. (OCBC, UOB, HSBC, Public Bank)

You've already signed on their LO anyways, they have right to decrease increase as they like and you're bound to their T&C. ~_~

What does BNM said in response to TS?

If don't like refinance loh, btw public bank also got increase there BLR suddenly and until now also never decrease

BNM acknowledge receipt of my complaint. But they will not reply to me directly.

Last time, CIMB revise their fully flexible Loans also same thing.

I acknowledge that cimb has the right to revise the BLR anytime but don't just take it lying down.

Voice your view, complaint about it through the right forums.

The choice is yours.

Do you just keep quiet if suddenly the Developer extend the completion date of your property with consent of controller of housing thus no need to pay LAD.

well all of us are bounded by the banks T&C..

but hey we can try luck by reporting to BNM..

better something done than nothing right

Somee said 10 basis points incremental is not enough to buy a dimsum lunch for a family, is siap siap sui for investors, better save the energy to enjoy glass of wine or whisky.

yeah, i do agree on what you said. i will elaborate a bit what CIMB do with their flexi and take it back later when too many ppl voice up.

they wanted to charge 'unutilised' finance charge, something like commitment charge if you have OD. to make it short, you brow 1mil but you put 1mil cash in ur flexi and cause CIMB cannot gain interest, they will charge u a % of loss in income.

so yeah, when BNM adjust lower interest banks should follow not increase.

yeah better try luck, alot of ppl doesnt do tat. i will suggest that those who didnt complain should accept paying the higher % to CIMB while those who complained should enjoy the lower rate!

i have not receive any notice yet, gonna complain!!!



i heard ppl said 0.1% is not enough for dim sum? its either they eat very expensive dim sum or they have very small amount of loan. take an 'affordable' house as example, 500k price 450k loan. 450k x 0.1% = RM450 extra for a year, not enough for dimsum? avg dimsum for 5~6 outside normal place is like RM300? imagine those shop lot or factory... 5mil or so... RM5k a year, some1 has to name me this dimsum restaurant where i cant even buy 10ppl dim sum with RM5k!

if we go deeper, CIMB is more expensive than other banks who reduce %... thats like 0.2% diff. now we can have RM10k dimsum shop name thanks.

This post has been edited by klthor: Jul 29 2016, 12:31 PM

I can understand your anger. But it is misplaced. Refinance if you must.

BNM does not control banks' BLR and Base Rate. It is determined by banks independently based on profitability calculations. The prices are mitigated purely as a function of competitive forces, not regulatory decree. Internal reports have shown the negligible profit margins for most mortgage products (which BNM is aware of) as a result of the price war over the last 5-6 years which have been at its HISTORICAL LOWEST.

Now in this season where most banks are no longer trying to capture/defend share of the mortgage market, this is the start of a gradual push back up on mortgage product pricing. You did sign a variable rate loan after all.

If you wanted steady rates, you would have signed on a fixed rate loan at a higher rate earlier.

It's good that you complain though. Consumer vigilance is always welcome.

But in this case, expect a few more decisive banks to follow suit as they rationalize their barely profitable mortgage portfolios.

This post has been edited by METALRAGE: Jul 29 2016, 01:44 PM

Guys,

Just got a update from BNM instructing CIMB contact me to resolve my complaint.

This may not mean much but at least, its something.

Please send your complaints to BNM if you're a CIMB Customer

Stand up for your rights....

Even if it fails, it does not cost you any money but it could save you a lot.....

Rm450 p.a is less than rm40 per month is not enough to pay for a family dimsum lunch.

Those who borrowed 5m or more already have silver and gold mountain backing to able to borrow this much.

If borrower is concerned with 10 or 20 basis point increment could mean he is highly geared and possibly overstretched.

lol i know some1 will divide it and make it look smaller. how about the fav of buffet the compounded interest factor? anyway, when your financier offer you a 10 20 basis point loan. remember to tell them no need.

Most people make loan repayments monthly.

BR, BLR, margin, spread, penalty rate, rights to cancel, recall, terminate, etc are all banks prerogative as per loan agreement.

Believe this is only the beginning our your dealing with bank various department, and we will hear from you again.


This post has been edited by icemanfx: Jul 30 2016, 07:10 AM

Fighting with FI individually is always a futile exercise unless you have a class action suit.

+1.
wasting time

If the bank decided to trim down their customer base, he is probably will be in the first batch to exit.

cimb has reduce blr/bfr to 6.75% (20point) on july 22nd. have you check your current profit rate? I confirmed that mine has reduced compare to jun when they increased it by 10 point.

Source

went up?? what the.. didnt the interest rate went down? doesnt make sense that the interest rate (FD+saving) went down n the loan rate went up

So TS, did you manage to get your matter resolved?

Waiting for CIMB to contact me.