You Don’t Have Bargaining Powers With Banks
If you think that customers are always treated like kings, the adage has lost its meaning when it comes to dealings with banks especially when it comes to applications for banking facilities like personal loans or secured loans. The illusion that a customer’s needs come first takes a back seat when the customer has to face the huge corporate figure and financial muscle of banks.
Banks are quick to come up with promises of cheap loans which would, in most instances, entice a prospective borrower to apply for these loans. However, that’s as much “friendliness” one can expect from the banks. What the borrowers would see (if they would open up their eyes and read the fine prints, which unfortunately most don’t) is that the banks retain much, if not all, discretion in the deal. There is hardly any sniff of a chance to negotiate the terms of the loan with the banks unless, you happen to be Bill Gates. But the again, Bill Gates probably doesn’t need a loan, does he?
A scrunity of the application form would show that in most instances, the borrower grants power to the banks to conduct credit checks on the borrower, subject to local laws and regulations in respect of data protection. Though the borrower can opt not to empower or authorise the bank to conduct such checks, it is likely that the application would be grossly delayed or rejected.
Next, when the terms of the approved loan are laid before the borrower for the borrower to affix his signature, the borrower can forget about any notion of amending any of the terms which, through my experience, are lop-sided in favour of the banks. “These are our standard terms”, they say. In other words, “Take it or leave it”.
I know I am stating the obvious. And I am stating it again. You don’t have bargaining powers with banks. That’s life, isn’t it?
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2 Responses to “You Don’t Have Bargaining Powers With Banks”
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I read about your writeout about the consumer’s bargaining power with banks. I have a recent experience of this concerning my land loan with a malaysian bank. I took up a loan with the bank for 7 years and to my surprise I was told before the end of the loan that the repayment period is not 7 but 9 years!
I was obviously outraged and making numerous complaints to the bank via phone calls and was like an idiot being pushed aside until I lodge a complaint to Bank Negara and still the bank’s reply to my complaint and letters did not even answer my complaint! Bank Negara has recommended my case to Finance Mediator Bureau. I need to seek opinions out there with any similar encounter and what is the best way to handle this???
Please advise..
robbed : Sorry to hear about your predicament. From whatever brief facts you mentioned, I can only assume that there might be a clause in the loan agreement which stipulates that fluctuation in the interests (BLR or late payment) might lengthen the loan period. Still, I would advise that you go through the terms with a fine comb to see if there are any clauses which might result in the lengthening of the loan period. Refer your matter to the FMB if you have not done so.