KUALA LUMPUR, Sept 28 — Banks should review their practice of charging for documents such as those used to loan applications, said the Bar Council’s Conveyancing Practice Committee chairman Datuk Roger Tan.
He said banks typically charged between RM100 and RM500 for the papers that were also usually printed out by lawyers.
“These documents are largely standardised documents for each bank.
“The bank’s solicitors will typically download the documents from the bank’s website and, after completing the particulars relating to the borrower and the loan, print for the borrower’s signature”, Tan said in a statement.
He said lawyers typically passed on the fee to consumers or were forced to absorb them.
Tan also suggested that the banks’ practice may be in breach of Section 37(2) of the Legal Profession Act 1976 that prohibits the unauthorised preparation of such documents for a fee.
He urged Bank Negara Malaysia to be proactive in this matter and not wait for the judiciary to force its hand.
