Brokers: AMP Contract Question

[chilliblue]

Has anyone been successful in removing or at least altering this AMP clause from their fixed term financial contract:

Clause 6: Changes to Particulars

We may change any of the following at any time without your consent.

- any variable interest rate

- the amount or frequency of any credit fees or charges, or

- the terms of any term loan facility, but by no more than 2 months due to a recalculation of repayments following a change in the annual percentage rate for that facility, or

- the number, amount frequency or time for payment of the repayments, or

- the amount of the minimum repayment.

We may impose new credit fees or changes at any time without your consent.

Many thanks

 

[Jamie M]

Hiya

Altering the contract may void it so speak with your broker about your concerns before making any changes to the loan offer document.

Cheers

Jamie

 

[Peter_Tersteeg]

Some of those clauses are truly awful, but they're also fairly standard across most lenders. The thing that keeps lenders reasonably honest in these clauses is that they want to remain competitive. AMP are quite reliant on brokers and if the brokers think they've got a bad deal, AMP will loose business.

I've never known a residential lender to negotiate on their loan contracts. It's a case of agree to the terms if you want the money.

If you try to cross out any of these clauses, the bank will not accept them. It will simply waste time whilst they draw up new contracts (for which some lenders would charge you, it's in their terms and conditions).

 

[Terry_w]

Terms of any contract may be negotiated, but good luck trying to remove this clause - what if the RBA changes interest rates? The bank would need to adjust your rate and repayment amount (once out of the fixed period).

BTW there are those that argue that these sorts of contracts are invalid - the terms are uncertain. Banks can basically change everything at any time.

 

[Rolf Latham]

there is no competitive pressure to do so either

ta

rolf

 

[Qlds007]

Agree never known a lender change any Term within its standard Terms and Conditions or mortgage documentation.

Had the odd requirement removed i.e Directors independent legal advice etc but never a pre-written clause.

If you change it yourself then the documentation will be void.

 

[chilliblue]

Thanks for the replies.

I am aware not to physically alter any parts of the contract but as AMP are already having to reissue them (incorrect rates and names) I was really concerned about signing my agreement on this point:

We may impose new credit fees or changes at any time without your consent.

Seeing that this is a fixed loan period, why would any willingly agree to sign this section.

Our agreements with St George and CBA do not have a similar clause so I was hoping that someone had an example of where they have been removed or altered.

 

[Terry_w]

Thanks for the replies.

I am aware not to physically alter any parts of the contract but as AMP are already having to reissue them (incorrect rates and names) I was really concerned about signing my agreement on this point:



Seeing that this is a fixed loan period, why would any willingly agree to sign this section.

Our agreements with St George and CBA do not have a similar clause so I was hoping that someone had an example of where they have been removed or altered.

Don't forget the fixed period would be say for 5 years and thereafter 25 years of variable rate would apply.

 

[Rolf Latham]

Our agreements with St George and CBA do not have a similar clause so I was hoping that someone had an example of where they have been removed or altered.

did you go through the mortgage memoranda booklets that accompany the loan contract.....you'dbe surprised to see whats lurking there

ta
rolf

 

[Brady]

You would find this across all the banks either in the contract or terms and conditions provided.

It's a 30year loan costs that the bank charges will change over that period.

But as someone else mentioned early what will stop them hiking it competition.

 

[Marty McDonald]

You would find this across all the banks either in the contract or terms and conditions provided.

It's a 30year loan costs that the bank charges will change over that period.

But as someone else mentioned early what will stop them hiking it competition.

Trust in the lender not putting you to the sword when it looks like the **** may hit the fan is the most important loan condition of all but you won't find it in the small print of your loan or mortgage paperwork. You need trust AND a viable plan B.

Just ask many (ex) bankwest commercial development clients about concentration risk and trust.

 

[Aaron_C]

Just ask many (ex) bankwest commercial development clients about concentration risk and trust.

Ah yes. But which other bank fudged valuations etc to get deals done?

 

[Marty McDonald]

Don't know what your talking about.