More follow-up and comments by forumers on above titled issue can be seen at this URL:
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The story was published in Straits Times last Saturday. I cannot get the link. Maybe you can find it.
In it, the Citi "Head of Secured Lending" explained what "throughout" means: "it means it covers the whole term of the loan", in another words, (he didn't say), it does NOT mean it will remain unchanged. What a disingenuous answer ! Had this been a parliament debate and he said such thing in front of the ppl, he would have been ridiculed to death.
My friend is still fighting with them. However MAS is not helping. I do not think "people" accepted this. I think "people" did not generate enough buzz. No active online coverage of this matter, and not many people actively helping the cause. The affected ppl are not that many, and not all of them are active online, hardwarezone type of folks.
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More comments by forumers at this URL:
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Here is the article published in Straits Times:
In summary, the news article tells us that:
1) Citibank UNILATERALLY hike the spread for their SIBOR loan (e.g. loan with interest term being "SIBOR + 0.60%) from 0.60% to 0.85%.
2) Citibank insisted that they have the right to change the spread, despite the complaint of unfair treatment by Citibank and query by the journalist.
Citibank Head's definition of "0.65% throughout" in mortgage loan agreement definitely is NOT WHAT WE UNDERSTAND. May be he can show us his dictionary's definition?
3) Consumers Association of Singapore (CASE) asked Citibank to "justify such rate changes clearly to the affected consumers".
My understanding: CASE asked Citibank to "justify" to pacify their customers can already (and CASE NOT GOING TO DO ANYTHING MORE......)
4) Monetary Authority of Singapore (MAS) said "it does not regulate the setting of interest rates but the banks must provide clear and relevant information on products and services, said a spokesman, adding that MAS has asked Citibank to review the customer feedback received".
My understanding: MAS asked that Citibank to review customer feedback received (can already, MAS NOT GOING TO DO ANYTHING MORE......)
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And more reponses regarding the contradicting/questionable response by Citibank can be seen at this URL:
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Mr Peng told The Straits Times: "The word 'throughout' is a term the industry uses, and refers to the tenure and period that we are covering."
this statement is so incredible that it needs higher degree of cynicism to comprehend (hopeful I bet you are not able to come out with this explanation ). I sent the reporter an email asking her whether she can ask Mr Peng to further explain what these 2 words together "spread throughout" mean, not just the word "throughout".
Finance industry experts say reviewing spreads is standard bank practice, but in practice, changing the spread during the loan period is uncommon.
Previous Chinese article said no other bank has ever done this. In fact this statement is self contradictory: if it were "standard practice", why doing it is "uncommon" ?
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And more responses can be seen at this URL:
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Banks do not exist to do charity lah!
If the term is present, and it is fair, and they can increase their profits, why no bank does it except Citibank now being the first 1????
"review spread is standard practice, which does not necessarily lead to changing spread. it is the changing of spread that is not standard practice, ie uncommon."
- Actually, they do change spread, BUT BUT only for new mortgage loan contracts, not those that BANKS already signed and there is no term in the mortgage loan contract that says they can change the spread!!!!!!!!!!
It is clear to me from you example, say e.g. "3M_SIBOR + 0.60% throughout"
means 0.60% forever for the tenure of the loan, as long as you are still the bank mortgage loan customer and that mortgage loan agreement is still intact (i.e. you have not refinance)!
Hope the journalist will follow up with Citibank's Mr Peng to clarify all the questions we raised here!
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