BNM tells banks to use plain language in housing loan contracts

BNM said financial service providers (FSPs) are expected to ensure fairness and clarity of terms and conditions in the contracts entered by them with retail customers and small and medium enterprises.

A thematic review on housing loan and financing contracts to identify terms and conditions that were inconsistent with reasonable expectations of fair conduct towards financial consumers was conducted last year by BNM.

From the review, it found that some of the terms and conditions were “disproportionately skewed in favour of the banking institutions and to the detriment of consumers”.

These included terms and conditions that provide absolute exclusions or limitations of a banking institution’s liability and obligations, and place undue reliance on signed declarations to assert that financial consumers have read and understood a contract.

Read More.. Source The Edge Markets

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2019-03-28T12:41:03+05:30March 28th, 2019|Categories: Banking & Finance, FIAKS daily, Lending|Tags: |0 Comments

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