“
In response to below letter writer's question:
Borrowers with such SIBOR packages have no recourse
and are at the mercy of the bank, making a mockery of a “fixed spread”
agreement. Would the Consumers Association of Singapore or any relevant
authorities comment on such an unfair practice?
Sorry to tell the below letter writer that as of NOW
(that we know so far),
MAS (Monetary Authority of Singapore) is NOT GOING TO
DO ANYTHING!
CASE (Consumers Association of Singapore) is NOT GOING
TO DO ANYTHING!
You Singaporeans have to go fight with the 800-pound
GORILLA bank (who has all the lawyers at their beak and call)!!!!!!!!!!!!!!!!!
You have enough money to sue the bank and win them????
Seems like a case of big bully at work????
Are all the letters referring to the same bank -
Citibank?
So far, from other news articles, only Citibank had
been mentioned as the BANK TO ADJUST THE SIBOR LOAN SPREAD!
“
And
response from other forumers:
“
hopeful, teddybear, bargain hunter, and whoever who
feel strongly Citi is not doing the right thing, please help to write to Today,
StraitsTimes, Zaobao.
for the strait time article, I found the link, the
email address of the reporter is there.
http://business.asiaone.com/news/bor...in-sibor-loans
Only a sufficiently large public outcry can bring some
attention from MAS. (CASE, forget about CASE, it's toothless).
btw hopeful: it's only after the Lehman case when MAS
stipulated what product can be said "Guaranteed" (i.e. needs to be
"A" rated, must be 100%, etc), and "capital protected" is
forbidden. So MAS can act if it feels necessary. We need MAS to tell ABS to
adopt fair mortgage contracts.
“
And
stinging comments made against Citibank:
“
Be careful with Citibank housing loan
I thought I was safe to sign up a 1 month sibor+0.6%
housing loan with Citibank in 2011 for 25 years not to worrying about keep
refinancing every two three years.
Two weeks ago, I received a surprise Citibank letter
advising me that they have raised the interest spread to sibor + 0.85%. I wrote
to complain about their unilateral move to increase the spread without my
consent. They told me that in the loan agreement, there was a fine-print saying
that Citibank has the right to increase the spread at their discretion! I was
shocked as I never realized that a bank can do that with our housing loan. I
hope this is just Citibank and not all banks in Singapore...
Anyway, since I complained, they offered me 2 options:
(i) a slight improved rate at sibor +0.75% for 3 years then jumping to sibor
+1.1% after OR (ii) stay with their latest increased spread of sibor +0.85%
"forever" but they made no commitment that they would not change
their spread again in the near future. Any advice on which option I should take
or I have better options to refinance out from Citibank?
Be careful if you want to sign up new loans with
Citibank...
“
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