United Overseas Bank (UOB) has decided it will charge customers who use its Overline Line of credit an annual fee of $150.
Although I have an arrangement to use this credit, I have not done so for
donkey years. However, I still object to this arbitrary imposition of a fee that simply has no justification whatsoever.
Why should there be an annual fee when the bank already charges interest on customers who activates the credit line? There is absolutely no service involved, so what is the rationale for having such a fee.
I think it is clearly a case of having its cake and eating it, too!!!
I called DBS Bank today to enquire whether it imposes such a fee and was told that it does not. What's more annoying was that the prime rate-plus
interest quoted by DBS was lower than that UOB is charging me.
In its letter to me, UOB says: "This fee will be debited from your account in June each year for as long as the Bank continues to extend ths Overdraft Line of credit.
"In the event of insufficient funds in your debiting account, the annual fee will be charged against your line of credit and the amount subject to interest."
Wow! I think it is time to start looking for another bank.