Commercial banks have asked their consumers to pay up to three percent more mark-up on the loans they have obtained for buying cars on leasing or financing basis.
Even those customers who obtained loans on a fixed mark-up rate have been told by banks that their mark-up had been made floating and they should pay more interest. The banks told customers they have hiked the mark-up rates to cope up with recent rise in interest rates in the market, while interestingly they have not given any increase to their depositors.
"This is totally unjustified, the bank cannot change the basic condition of a loan agreement," said an office worker who obtained car financing on 7.8 per cent mark-up last year, which now has been raised to 11 per cent. "The bank says that it can vary the mark-up rate any time, but how can it change the financing plan it had issued on five-year fixed term basis," he said.
"It's a coercive act and plain fleecing of which State Bank of Pakistan must take notice," the irritated bank client said.
"I would ask other consumers not to fall prey to false promises banks make in advertisements offering car financing loans," said another affected man in front of a bank counter. "If banks have raised the mark-up rate after one year by three per cent who knows next year more burden is put on customer, then there is no protection to consumers," he said.
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