The High Court assistant registrar Randeep Singh Koonar sharply criticized United Overseas Bank (UOB) for taking inconsistent legal positions on late payment charges in mortgage litigation involving SGmade Co-Operates [1, 2]. In the 2026 case, UOB sued SGmade for defaulting on a S$556,200 loan secured by a commercial property at Oxley Bizhub, Ubi Road 1 [1, 2]. The loan was granted in June 2023 and was repayable over 312 months [1, 2].

UOB issued initial demand letters starting in September 2025 after the borrower fell behind, then recalled the loan in October 2025 demanding full repayment of over S$542,500 [1, 2]. By December 2025, UOB served notices instructing occupants to vacate the premises within one month [1, 2].

UOB sought court orders for vacant possession, repayment of the outstanding loan, and had claimed S$80 late payment charges for each overdue instalment [1, 2]. At an April 10, 2026 hearing, the borrower did not attend or have legal representation [1, 2]. Despite the lack of opposition, the court required UOB to prove that all procedural and substantive requirements to obtain the orders were met [1, 2].

Assistant Registrar Koonar stated that after loan recall, UOB could no longer charge monthly late payment fees since no further instalments were scheduled. He criticized the bank for maintaining its late fee claims and then withdrawing them when questioned by the court. "UOB should take a principled and consistent position on its legal entitlement to impose the late payment charge. (It’s) unsatisfactory for UOB to persist in making such claims but drop them once made to justify and defend their position," he wrote [1, 2].

The court noted that similar inconsistent claims regarding late payment charges were withdrawn by UOB in two other 2025 mortgage cases upon court queries [1, 2]. A UOB spokesperson said the bank accepted the ruling and would not charge late fees after loan termination in future cases [1].

The case timeline highlights key events: the June 2023 loan grant, September 2025 initial demand letter, October 2025 loan recall and full repayment demand, December 2025 eviction notice, March 2026 mortgage lawsuit filing, April 10, 2026 hearing, and May 18, 2026 written judgment by the assistant registrar [1, 2].

The next step involves UOB applying the court’s guidance on late payment charges in ongoing and future mortgage loan cases.