Can a Bank Introduce Monthly Fees?

ssx on 26/05/2016 - 21:34

This is probably a stupid question, but here goes:

I signed up to a particular mortgage package in September 2015 that was advertised as no monthly, administration or ongoing fees (signed up through a broker).

Now I have received a letter saying that there will be a $10 monthly charge.

I tried googling, but I can't find if this is allowed or not.

I know a bank can decide to charge a fee as long as they give you notice but I wasn't sure if loans fall under different rules?
Like a contract with defined features and services?

Financial

Comments

  • oscargamer on 26/05/2016 - 21:43

    they can do what they want

    you are free to leave and do what you want

  • ssx on 26/05/2016 - 22:30

    I thought that might be the case - just wanted to make sure. Thanks :)

  • chumlee on 26/05/2016 - 22:33

    Depends what your agreement/contract states

  • ssx on 26/05/2016 - 23:11

    Well, when I signed, the agreement said no fees. It was again stated in the confirmation/welcome letter.

  • PJC on 27/05/2016 - 01:06
    -1

    You may as well name and shame the bank.

  • garetz on 27/05/2016 - 04:48
    +1

    No, they cannot do what they want, if your contract, and thats what a mortgage is, a contract between you and the bank, states no fees, then they cant just change their minds later on.

    • ssx on 29/05/2016 - 05:55

      Thank you - this was very helpful….I found my answer :)

      • Daabido on 31/05/2016 - 16:40

        There is almost always a clause in the contract which will allow the bank to introduce various fees and charges and advise you of those changes when they are made.

        That being said, you could always negotiate with the bank to waive the charges.

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