Shah Alam, Selangor

Home Benefits Scheme (5/95) - Progressive Interest/Charges

Have you came accros this error/problem from MBB under 5/95 package?

Received a "big surprise" (letter) from MBB:

1. I need to service the progressive interest/charges based on the loan/financing amount released.
2. The loan statement/notices will be sent to me montly reflecting the total amount due for payment.
3. They will debit penalty interest as per T&C in the Letter Offer if progress interest/charges not settled in time.

I've bought the property under 5/95 scheme. Why MBB sent such a letter to me? Immediate call the bank manager and she explained that this is their standard template/format for all borrowers although my loan is under new package. She said no need to worry what are stated in the letter as my Letter Offer had already stated all the progressive interest/charges will be borned by Paramount. Asked me to ignore it.

Can't believe that a Bank can use same claused for different categories of borrowers!!!

Tags: interest/charges, progressive

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Replies to This Discussion

Permalink Reply by John Chan on July 2, 2009 at 1:43pm: Please check your Letter Offer/Loan Agreement, there is a clause stated if the developer failed to pay any fees/interest more than "X" times (can't remember the exact times), the bank has the right to revise the loan package with high interest rate. So BLR -2.2% no longer applied but BLR +2.2%... just simply put :P

To protect us, better to make sure all the "default" procedures are in order and in the correct manner.; ▶ Reply to This

Permalink Reply by Steven Yip on July 2, 2009 at 4:50pm: Oh is it? Oh @#$@#$!!! Need to rush back and check my letter of offer ... this is what happen when we trust the banker and developer too much when they say the rest of the documents are just protocols and formalities. Sigh!!; ▶ Reply to This

Permalink Reply by John Chan on July 11, 2009 at 9:22am: Received 3rd letter with same content =='

I thought the manager had highlighted it to their credit admin people :S

Will go to Paramount office this afternoon to clarify this again...; ▶ Reply to This

Permalink Reply by Steven Yip on July 11, 2009 at 10:08am: I am going over today too. But to the show house not sure going to the sales office or not. You keep us updated on this John. Thanks a lot.; ▶ Reply to This

Permalink Reply by John Chan on July 13, 2009 at 10:12pm: Checked with Paramount & MBB in Paramount office last Saturday, they said no need to worry on what is stated in the letter as it is just a protocol/formality. Both of them requested me to ignore the letter as Paramount will pay the interest once billed... (3rd letter already)... =="

Really a standard answer from both of them as expected... no black & white... but I just feel it is not right why the bank reluctant to amend the content =="

Besides, Paramount said so far they haven't received any progressive interest bill from the bank yet =="

How about yours? Really vomit blood ;(; ▶ Reply to This

Permalink Reply by Steven Yip on July 14, 2009 at 12:16am: I got the same answer actually previously as the sales girl mentioned that it's formality or procedure that their office will send the letter to us and we can ignore that. So don't know what else we can do.; ▶ Reply to This

Permalink Reply by Chin Eng on July 14, 2009 at 5:33pm: perhaps bring this to the attention of Bank Negara? after all, they are the regulator in banking issue.

Or maybe consult your loan lawyer?; ▶ Reply to This

Permalink Reply by Steven Yip on July 17, 2009 at 9:13am: What do you know, I just received another letter from MBB informing me that they have dispersed 100K++ to PPD and asked me to serve the interest AGAIN!!

What I got from MBB during my visit to them last Weds was, it is their procedure (or always) to send the letter to all the buyers and what should we do bout it? Ignored the letter. Can I have a black & white of this issue? No was the reply as it's just a formality for them. In words of John, VOMIT BLOOD!!; ▶ Reply to This

Permalink Reply by John Chan on July 17, 2009 at 12:59pm: I'm thinking of send them (Paramount & MBB) a black & white to clarify this & make cc copy to BNM. Sure they will reply with B&W... hehehe...; ▶ Reply to This

Permalink Reply by Steven Yip on July 19, 2009 at 5:33pm: I had clarify with them all and truely to say, there would not be any black and white issue. haha! like you said, vomit blood. LOL!! I got the second letter from MBB for the progressive interest again last week. haha!; ▶ Reply to This

Permalink Reply by Colin Aw on August 19, 2009 at 1:16pm: yeah i got those misc letters too. No ideas what they were, as it's my firsttime purchasing. But i do know, it's part of the formality to CC a copy to the purchasers. Ive called and ensured, there's nothing to worry bout; ▶ Reply to This

Permalink Reply by Sam Ng on August 21, 2009 at 4:27pm: hi

i am in the process of securing loan from KU panel ie CIMB and Maybank. since i am going for the 5/95 schema, does it matter if i go with either bank, other than the usual criteria such as service level, competency level, etc?; ▶ Reply to This