How to Deal with Illegal Moneylenders in Singapore
Without a doubt, illegal moneylenders are a bane to the economy of any country. Whether they are loan sharks or unlicensed moneylenders, these types of lenders put a financial strain on borrowers. Borrowers who have done an unfortunate deal with them face a difficult task when it comes to repaying their loan. Loan sharks and unlicensed moneylenders are known to charge exorbitant fees and high-interest rates that make borrowers struggle financially. If borrowers cannot repay their loan on time, then the true horror begins in the form of harassment and threats.
Harassments and threats are a common trend of practice among loan sharks and unlicensed moneylenders. Borrowers are put into stress and are forced to find ways to settle their debt with their loan shark. Anyone who comes across with a loan shark or an unlicensed moneylender should know that these types of lenders are financial predators, which have inhumane moneylending practices.
In Singapore, loan sharks are often called ‘Ah Long’. Hence, should you encounter these types of lenders in Singapore, here are ways to deal with them.
1. Do not interact with them
The best way to deal with loan sharks and unlicensed moneylenders is to ignore them. At first, these types of lenders may appear sympathetic to your financial need, but when you make a transaction with them, they will charge your loan with illegally-high interest rates. For your reference, the maximum interest rate that licensed moneylenders can charge is 4% per month.
2. Do not give in to their offers
No matter how desperate you may be in finding money, do not avail of a loan from a loan shark or an unlicensed moneylender. Availing a loan from them will put you in a financial trap that you may find difficult to get out.
3. Verify the license of the lender
If a lender offers you a loan, then be sure to verify if that lender is licensed or not. There is a list of licensed moneylenders that you can find on the website of Singapore’s Ministry of Law.
4. Be vigilant when dealing with loan sharks and unlicensed moneylenders
You should note that some loan sharks or unlicensed moneylenders will masquerade as licensed moneylenders. If the loan shark has advertised through any illegal form of advertisement, then disregard them.
5. Know the legal channels in moneylending advertisements
Loan sharks and unlicensed moneylenders use illegal channels when advertising their practice. Licensed moneylenders in Singapore can only advertise through three types of channels, namely: online or printed business or consumer directories, websites owned by the moneylender, and posted or placed advertisements within the business premises of the moneylender.
If a loan shark or an unlicensed moneylender has contacted you through flyers, emails, SMS, or calls, then disregard these advertisements and contact the proper authorities. Never respond to these forms of advertisements.
6. Know the practices of these illegal moneylenders
For you to not fall to the scams of a loan shark or an unlicensed moneylender, you should know their tricks and schemes. Thus, here are the common practices that should let you know you are dealing with an illegal moneylender:
- They can offer to grant your loan without any form of contract signing or documentation.
- They did not exercise any due diligence when granting your loan. For example, they did not ask any questions about your income and employment.
- They will take your personal identification cards as collateral, which is not allowed.
- They may exhibit threatening or abusive language towards you.
- They have no receipts to issue when you are able to make repayments.
- They have high-interest rates and exorbitant fees that they will not disclose to you.
7. Seek advice from financial experts
For you to have a better handle on your loans and financial status, you can seek help from financial experts who can give you advice on how to borrow money properly. They can also teach you how to manage your debt, expenses, and income properly. In this manner, you will not give in to the temptation of loan sharks and unlicensed moneylenders.
8. Report the lender to the proper authorities
Unlicensed moneylenders and loan sharks are a threat to the community. These types of lenders can even threaten a borrower’s family and friends if the borrower fails to repay their loan. Thus, for you to help stop these practices, you can help the Police in their fight against loan sharks and unlicensed moneylenders. If you have an unfortunate encounter with a loan shark or an unlicensed moneylender, then you can call the Police Hotline at 1800-255-0000. For emergencies, you can call their number at 999.
9. Always take a loan from a licensed moneylender or a legitimate financial institution
There are numerous licensed moneylenders and banks in Singapore that can offer you a loan. Find one that can offer you the right loan for your needs.
10. Know the practices of licensed moneylenders in Singapore
For more questions about the moneylending practice in Singapore, then you can read the borrower’s pamphlet that you can find on the website of Singapore’s Ministry of Law.
Looking for the right moneylender in Singapore?
One way to help stop loan sharks and unlicensed moneylending is to make transactions with legitimate financial institutions. In this manner, they will have less victims to take advantage. If you are looking for a legitimate moneylender in Singapore, then click this website, https://www.fortunecredit.com.sg/. The moneylender can offer you a loan with a flexible payment plan that will not put a financial strain on you. They have ethical moneylending practices that is built on trust and honesty. Get in touch with them if you want to make a transaction with them.