EnTie Commercial Bank (安泰銀行) yesterday denied having collected NT$47 million (US$1.5 million) in unjust fees from a borrower before proceeds from a NT$1.29 billion loan were paid out in a dispute dating back to Dec. 25, 2014.
The bank was responding to a news conference held by Democratic Progressive Party caucus whip Wu Ping-jui (吳秉叡) on behalf of the borrower.
The borrower, a New Taipei City-based real-estate developer, said that its agreement with the bank stipulates that no fees would be required until the loaned funds are disbursed and utilized.
However, just six days after the agreement was finalized, the bank said that the fees must be paid to meet procedural requirements to cross over to the next fiscal year, or the borrower risked losing the line of credit.
The bank then refused to refund the fees after the borrower canceled the loan in light of changes in investment outlook and other considerations.
As of Feb. 19 last year, the loan has not been utilized, the borrower said, adding that the agreement did not include the obligation to utilize the credit line extended by the bank.
“The bank misled the borrower with highly technical financial jargon to reap exorbitant fees from individuals,” Wu said, urging regulators to penalize the bank according to the Financial Consumer Protection Act (金融消費者保護法).
EnTie denied the allegations and said that the dispute in question extends beyond the scope of a simple commercial loan, and that the fees it charged were for complex financial services it provided.
The agreement with the borrower was created over several months, during which the bank had maintained amicable relations with its client, EnTie said in a statement, adding that the client did not raise objections to the fees as it was unable to utilize the loaned funds.
The agreement involved comprehensive structured financial planning for several land development projects, as well as coordinating lines of credit from other lenders, the bank said.
In addition, the bank had performed complex due diligence and verification of a number of land development contracts, land deeds, construction contractors and land owners to fashion a tailored solution for the client, it said.
EnTie said that the borrower had twice requested an extension of the loan’s disbursement to the end of April, due to reasons that led to the client’s inability to meet the requirements of the financial planning arrangements that the bank has been asked to devise.
“The dispute stems from the client’s inability to carry out the advised financial planning, due to reasons beyond the bank’s control,” EnTie said.
“In demanding refunds of reasonable fees in exchange for exhaustive professional financial planning services, the client had reversed previous agreements,” EnTie said, adding that it is awaiting a court’s ruling on the dispute.
Banking Bureau Deputy Director-General Lu Hui-jung (呂蕙容) said that while financial institutions may impose fees based on risk exposure and service costs, the terms must be fair, reasonable and transparent.
Lu added that the Financial Consumer Protection Act would be applicable in determining alleged wrongdoing in the dispute, and whether EnTie had failed to fully disclose contract terms, as well as all relevant risks to the client.
Taiwan’s long-term economic competitiveness will hinge not only on national champions like Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) but also on the widespread adoption of artificial intelligence (AI) and other emerging technologies, a US-based scholar has said. At a lecture in Taipei on Tuesday, Jeffrey Ding, assistant professor of political science at the George Washington University and author of "Technology and the Rise of Great Powers," argued that historical experience shows that general-purpose technologies (GPTs) — such as electricity, computers and now AI — shape long-term economic advantages through their diffusion across the broader economy. "What really matters is not who pioneers
In a high-security Shenzhen laboratory, Chinese scientists have built what Washington has spent years trying to prevent: a prototype of a machine capable of producing the cutting-edge semiconductor chips that power artificial intelligence (AI), smartphones and weapons central to Western military dominance, Reuters has learned. Completed early this year and undergoing testing, the prototype fills nearly an entire factory floor. It was built by a team of former engineers from Dutch semiconductor giant ASML who reverse-engineered the company’s extreme ultraviolet lithography (EUV) machines, according to two people with knowledge of the project. EUV machines sit at the heart of a technological Cold
TAIWAN VALUE CHAIN: Foxtron is to fully own Luxgen following the transaction and it plans to launch a new electric model, the Foxtron Bria, in Taiwan next year Yulon Motor Co (裕隆汽車) yesterday said that its board of directors approved the disposal of its electric vehicle (EV) unit, Luxgen Motor Co (納智捷汽車), to Foxtron Vehicle Technologies Co (鴻華先進) for NT$787.6 million (US$24.98 million). Foxtron, a half-half joint venture between Yulon affiliate Hua-Chuang Automobile Information Technical Center Co (華創車電) and Hon Hai Precision Industry Co (鴻海精密), expects to wrap up the deal in the first quarter of next year. Foxtron would fully own Luxgen following the transaction, including five car distributing companies, outlets and all employees. The deal is subject to the approval of the Fair Trade Commission, Foxtron said. “Foxtron will be
INFLATION CONSIDERATION: The BOJ governor said that it would ‘keep making appropriate decisions’ and would adjust depending on the economy and prices The Bank of Japan (BOJ) yesterday raised its benchmark interest rate to the highest in 30 years and said more increases are in the pipeline if conditions allow, in a sign of growing conviction that it can attain the stable inflation target it has pursued for more than a decade. Bank of Japan Governor Kazuo Ueda’s policy board increased the rate by 0.2 percentage points to 0.75 percent, in a unanimous decision, the bank said in a statement. The central bank cited the rising likelihood of its economic outlook being realized. The rate change was expected by all 50 economists surveyed by Bloomberg. The
RSS