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 gkl83 on June 29, 2009 at 7:16am: by right the banker must attention the letter to u, because u r the one taking the loan...
that why they need to mail u the original copy and may CC copy to Paramount...

Paramount will release payment for paying interest after they received letter from bank...
as long as Paramount paying the interest for u during construction, i think wont have any major issues... once the house handover-ed, so the Paramount will ignore the letter and stop to pay for u...

about the progressive letter, i do receive and believe bank will CC copy to paramount as well for reference...; ▶ Reply to This

Permalink Reply by John Chan on June 29, 2009 at 1:03pm: I do understand.

First I thought under this package, the progressive letter/bill is send "TO" developer & "CC" to me.

If there is the arrangement as explained by you, I'm ok with it. My concern is the letter didn't state any "CC" column to Paramount. Don't know whether Paramount aware on this letter or not. I think I will check with Paramount on this coming Saturday.

Thanks :); ▶ Reply to This

Permalink Reply by Chin Eng on June 29, 2009 at 1:25pm: I think you must demand something in writing from them to clarify your case.

Everything is black and white one, otherwise later they charge you interest then susah ...; ▶ Reply to This

Permalink Reply by John Chan on June 29, 2009 at 1:45pm: Called MBB manager, she said she need to check with her boss whether can issue black & white to clarify this issue... A week has passed but no reply till now... really bad service lah :S; ▶ Reply to This

Permalink Reply by place on June 29, 2009 at 2:18pm: ohh yeah...MBB's famous for their 'slow' processing ... no offence to MBB bankers... :P

give it sometime....but do call them on and off...to make sure its not 'forgotten'...; ▶ Reply to This

Permalink Reply by Hong Boon on August 4, 2009 at 9:29am

Hi, I check my loan offer letter under MBB under 5/95 package, one of the cause as per attach.

That's mean if developer fail to pay the interest, the borrower need to settle..
Any comment ?

Attachments:

Bank.JPG, 32 KB

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Permalink Reply by John Chan on August 5, 2009 at 12:00am: Same to my LO too...

What I can say is "vomit blood" & felt cheated...

Wondering why MBB put this clause on the LO... Any late payment MBB should chase from Paramount not the buyer... From banking credit point of view I understand but from marketing strategy point of view... is no no... If so "kedekut" better not offer this package lah...

What we can do is monitor the payment schedule from developer to MBB lo... =="

Other than MBB, does any one of you the LO also stated the same??? Mind sharing???; ▶ Reply to This

Permalink Reply by Esther on August 5, 2009 at 12:13pm: John, I took CIMB loan and there is also the same clause stated in the LO....; ▶ Reply to This

Permalink Reply by Steven Yip on August 9, 2009 at 11:28pm: i think this is a standard clause done by all banks to protect their own interest. but still it's a disadvantages to us all. sigh~!; ▶ Reply to This

Permalink Reply by place on June 29, 2009 at 2:17pm: huh?...can they actually differ the clauses?.. John i guess u better clarify that with Bank officers urself... at least get them to amend the 'wrong' clauses and acknowledge it....

btw, its seriously a meticulous task to select a good home loan package...

hope everything's ok man....good luck..; ▶ Reply to This

Permalink Reply by John Chan on June 30, 2009 at 1:00pm: Just checked with Paramount, the PIC said so far they didn't received any bill/notice/CC copy regarding progressive interest from the Bank. She said it should be a document error as the Bank should charge it to Paramount not the purchaser. Requested me to refer it to MBB for clarification :S; ▶ Reply to This

Permalink Reply by Steven Yip on July 2, 2009 at 9:28am: I think most (or all) of the people who took the 5/95 (including me) received the progressive interest note from the bank. But all this while, I just treat it as a cc or a reference copy for me on the progressive of the property then having to pay for it.

As you mentioned earlier, both bankers and developer has this "default" procedure to sent all the letters out even though you don't need to pay or do any action upon it. For example, they (developer) are sending me a remind on the disposal of the down payment before the due date and all. I asked the PIC and they gave me the same feedback.

But what you said is true, we need to protect ourselves. Cause at the end of the day, if anything did happened (touch wood), we will be bond by the black and white papers issue. They don't really care who told us what or who promised us anything. : ); ▶ Reply to This