FSC warns banks on charging high processing feesRELIEF LOANS: Some banks are trying to get around the interest rate cap for loans to help firms affected by the pandemic by hiking other fees, a DPP legislator saidBy Kao Shih-ching / Staff reporterThe Financial Supervisory Commission (FSC) would investigate banks that charge “unreasonably high handling fees” when approving loans to companies affected by the COVID-19 pandemic, FSC Chairman Wellington Koo (顧立雄) said yesterday. “We will ask why the bank charged very high fees. Taipei Fubon’s high handling fee is a higher interest rate in disguise, she added. Taipei Fubon said in a statement later yesterday that it had clearly informed the borrower, one of its regular clients, about how it would charge handling fees and that the firm fully understood the terms. “The handling fee of NT$80,000 is too high, given an average handling fee of NT$5,000 for mortgages at most banks,” a bank executive told the Taipei Times on condition of anonymity.

Source: Taipei Times May 04, 2020 15:56 UTC