WE REFER to the letter, 'Banks' exclusion clause is unfair to customers' (my paper, June 9).

Under the Unfair Contract Terms Act, a person can restrict or exclude liability for negligence only when the term or notice is reasonable.

The revisions to the Consumer Protection (Fair Trading) Act now brings the banking and financial sector under the Act's provisions.

The Consumers Association of Singapore is of the view that the clause may breach one of the 20 unfair practices listed under the Act: Taking advantage of a consumer by including in an agreement terms or conditions that are harsh, oppressive or excessively one-sided so as to be unconscionable.

We urge the Association of Banks in Singapore to review the clause.

Mr Seah Seng Choon
Executive director
Consumers Association of Singapore

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