Good news for property buyers from Bank Negara Malaysia

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I still remember asking my good friend who’s my also my lawyer (based in Penang) for one particular property purchase on some terms in the Sale and Purchase agreement many years ago. She explained them to me slowly and was very patient too. If you need her email contact, click here. If you need her mobile instead, please let me know yeah. I don’t want her to receive spam calls. As all of us are aware, there are many T&Cs from the loan agreement which sometimes look unfair (may not be unfair) or sometimes hard to understand (unless the bank officer explains it to us slowly and in easy to understand words) and most of the time, ‘cannot be changed because it’s a standard T&C.’ There’s now a remedy and it’s on the way. Bank Negara Malaysia (BNM) is the one asking for that change and it should be implemented by end 2019.

Article in here. Bank Negara Malaysia (BNM) has found that certain terms and conditions in housing loans and financing contracts are in favour of banking institutions but causing detriment to consumers. It said the terms provide exclusions or limitations of an institution’s liability”and obligations and place undue reliance on signed declarations. Furthermore, some terms are unnecessarily complex and didn’t aid clear understanding by consumers. Banking institutions are now required to revise these terms and conditions, as well as improve clarity through the use of plain language by end of 2019.

The bank is also readying a set of standards that set out its expectations for the board and management of financial service providers (FSPs) to promote a culture where the interests of consumers are an integral part of business operations. FSPs must also act in good faith by ensuring the terms are fair, clear and concise. Appropriate advice is also offered based on needs and financial circumstances. “While these standards have long underpinned the bank’s requirements on market conduct, bringing these standards together aims to promote and reinforce a ‘whole-of-institution’ approach to ensuring that FSPs do not behave in a way that could harm financial consumers.” Article in here.

Sometimes, it takes the regulator to set some standards and this is the reason why I will never support a fully free-from-intervention kind of free market. It will be detrimental to the consumers frankly. Truth is, without the regulator, the biggest few players in the market will determine the direction of the market and the rest of the smaller players will simply follow. It’s already April 2019 now. I think we will see some changes very soon. Happy waiting for them but please do not wait until then before buying a property yeah. They are two different issues. 😛

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<Featured Image is courtesy of Stock Photos from By Song_about_summer>

Article written and edited by Charles. News article summarised by Dina Batrisyia.

written on 2 April 2019

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