You may have seen my previous posts on Macquarie scew up with my Asia fund http://www.invested.com.au/4/macquarie-bank-asia-redemption-34549/ .. looks like Macquarie are trying to steal more money from customers. Watch out for this dirty bank... Macquarie admits to contract errors By George Lekakis May 29, 2008 03:00am Article from: Font size: + - Send this article: Print Email MACQUARIE Bank is hoping it can grab thousands of dollars from up to 1000 borrowers set to refinance their home loans with rival lenders. In an embarrassing move, Macquarie's mortgage arm has told borrowers that "errors" were made in the wording of their official loan contracts signed since 2005. Macquarie has written to the affected customers in a bid to change contractual terms so that it can levy fees to recover mortgage insurance from borrowers about to refinance their loans. Mortgage contracts seen by BusinessDaily show that Macquarie is not entitled to impose any mortgage insurance recovery fees if home loans are discharged within three years. But Macquarie is now writing to borrowers to amend the terms of the contracts "in order to rectify the error". Macquarie has been hit with a wave of refinancings in the past two months after it hiked rates on most of its home loan products above 10 per cent. It is believed that customers with no-documentation loans have been particularly keen to refinance after Macquarie boosted its rates above 11 per cent for those products. Macquarie spokeswoman Irene O'Brien confirmed that about 1000 borrowers had received correspondence amending the contracts. "When clients take out loans with us they're told verbally that we will absorb their lender's mortgage insurance if they don't discharge the loan within three years," she said. "These letters are a correction because this condition was not included in the loan agreements. "It's not changing the contract because all we're doing is correcting something that was obviously an error." But an irate former Macquarie customer told BusinessDaily yesterday that if the change was legally allowed it could cost him about $5000. The borrower refinanced his loans with another bank last month, but was only notified by Macquarie of the changes to his old contract last week. "It's as if they're trying to change terms and conditions to apply retrospectively," the former Macquarie client said.