PETALING JAYA: Doing away with banks’ documentation fees of between RM100 to RM600 for housing loan borrowings is timely during these trying times, say consumer groups.
They lauded the move and called on Bank Negara to ensure consumers are protected from other kinds of similar bank charges.
Federation of Malaysian Consumers Associations (Fomca) secretary-general Datuk Dr Paul Selvaraj said the abolition was timely as the people are grappling with the high cost of living.
“This is great news, especially at this time when the cost of living is high and tough for the people.
“Banks have been somehow getting away with charging consumers for documentation fees before this.
“So this is a very positive step by the central bank to help consumers in facing the cost of living issues,” he said when contacted.
Paul noted that Bank Negara, as the regulator, needs to ensure banks do not pass on the cost to consumers in another way.
“We will not be surprised if banks try other things.
“It’s the role of the regulator to make sure consumers are protected against unfair charges.
“Bank Negara has to make sure it does not happen.”
As most consumers do not check their bank charges, he called on Bank Negara would monitor the fees to ensure consumers are protected and not charged unfairly.
Consumer Association of Penang (CAP) president Mohideen Abdul Kader said abolishing the documentation fee would ease the borrowers’ burden.
“CAP welcomes the abolishment of documentation fees between RM100 to RM600 for loans. It’s a very good move.
“This will help alleviate the burden on the poor,” he said, referring to those who purchase low-cost or affordable housing.
However, he warned borrowers to not take this for granted. “Don’t apply for more loans,” he said.
