ABOUT 200 homebuyers in Shenzhen had launched an online protest against banks which allegedly broke a promise to discount mortgage rates and instead demanded higher interest, the Shenzhen-based Securities Times reported Sunday.
Around 184 people had joined a group on the Internet, named victims of bank breach on loan interest, the paper said.
All members of the group had been required to pay higher mortgage rates despite 13 banks earlier promising discounted interest.
The Industrial and Commercial Bank of China (ICBC) was the target of most complaints, the paper said.
Many group members said they had received a letter of commitment from banks last December, promising a 15-percent interest discount on their home loans. However, after two months, they were told they would have to pay higher interest to get their loans.
One member with the online name Belle said he would need to pay an extra 500,000 yuan (US$75,758) for his 1-million-yuan loan with ICBC.
The paper attributed the banks change in interest rates to the country s increasingly tougher stance on bank lines of credit.
Banks usually reached an oral agreement with borrowers on the interest discounts, which made it almost impossible for borrowers to protect their rights through legal avenues.
In addition, a letter of commitment was not legally binding, the paper said.
A real estate lawyer in Shenzhen, Liu Ziru, said complainants needed to present proof of a bank s promise of discounted interest to protect their rights.
A commitment in writing would help, Liu said.
(Li Hao)
