KUALA LUMPUR (June 3): Customers at CIMB Group Holdings Bhd's bank in Singapore have joined forces to protest its decision to raise its mortgage floor rate threefold during the Covid-19 pandemic.

According to the Singapore Business Review, more than 60 customers have launched a website named HonestMortgages.sg, where they question whether any bank in the city state has the right to raise rates whenever they want.

On the website, the borrowers said they have written several emails to the bank "with no visible progress".

In April, CIMB Singapore announced that it would be raising its mortgage floor rate to 0.9%, from 0.1% previously, effective May 18 with customers receiving a letter from the bank around April 17.

CIMB Singapore later delayed the start date of the new floor rate to Jan 1, 2021.

"CIMB has responded that they will postpone the floor rate increase to 1 January 2021 but we do not think that this is an appropriate response. All parties need to understand that this is not just about getting a lower rate. It is about the sanctity of contracts and unfair mortgage practices by CIMB," a spokesperson from HonestMortgages.sg told Singapore Business Review.

The disgruntled customers added that some mortgage customers only signed contracts as early as March.

The publication reported that the Monetary Authority of Singapore has also encouraged HonestMortgages.sg to contact the bank directly over the dispute.

While there are no plans for the dispute to reach court, the customers expressed that they will pursue all options available to them.

As of 11.18am, CIMB shares were up by 2.17% or eight sen at RM3.76, valuing it at some RM37.41 billion.