|The Bar Council said it is high time for banks to review its practice of imposing fees for loan documents. (Image by Pixabay: For illustration purposes only)|
Banks' practice against the law, a burden to customers, says Bar Council official
KUALA LUMPUR: The Bar Council said it is high time for banks to review its practice of imposing fees for loan documents.
Bar Council conveyancing practice committee chairman Datuk Roger Tan said the practice was against the law and has a become a burden which consumers could do without.
He said the fee was imposed on the banks’ loan documents, which borrowers sign when taking, for example, a housing loan.
“These documents are largely standardised documents for each bank.
“The bank’s solicitors will typically download the documents from the bank’s website and, after completing the particulars relating to the borrower and the loan, print for the borrower’s signature,” said Tan.
He said banks currently charge a fee for the ‘purchase’ of these documents ranging from RM100 to RM500, even though the cost of printing the documents is borne by the solicitors.
He said that the document fee is usually passed on to the borrowers as part of the solicitor’s charges. However, Tan said that in some cases, solicitors are compelled by the banks to absorb these costs.
“This results in the borrowers having to pay additional costs when taking a loan from a bank and the solicitors getting peanuts for the professional work done especially purchasers of low- and medium-cost and affordable homes.