When we choose a licensed money lender over a loan shark, we expect a standard of conduct and professionalism that these illegal money lenders do not have. However, in certain cases, things may go south and your licensed money lender could resort to unwarranted ways to contact you for repayment, which is considered harassment.
Under the law, licensed money lenders have a code of conduct to comply with. This includes respectful business dealings with their clients. Sometimes, you may not even realise that you’re experiencing licensed money lender harassment. Therefore, here are some ways to recognise such harassment and tips to prevent it from happening to you as well.
What’s considered licensed money lender harassment?
Recognising licensed money lender harassment can be tricky, especially when you do not expect it from a company verified by the Registry of Moneylenders. You may also brush it off as common behaviour. However, such actions by licensed money lenders are not permitted.
A clear sign of licensed money lender harassment is when the company starts to use abusive or threatening language on you.
As certified businesses, licensed money lenders should always communicate with their clients professionally and not resort to threats or verbal abuse. Furthermore, licensed money lenders are permitted to make phone calls only during business hours.
If the business constantly calls you before or after their operating hours, it’s considered licensed money lender harassment.
Additionally, the lender should only be in contact with you and not any of your relatives or friends. If the firm pesters your loved ones for your whereabouts, it’s considered a breach of conduct. Lastly, any business between the licensed money lender and you should be kept private and confidential.
Therefore, if any licensed money lender attempts to display a letter of demand at your home or uses its social media platforms to announce your loan details, they will have to undergo investigations by the police.
Tips to prevent licensed money lender harassment
1. Search up reviews of the lender before borrowing from them
Even though licensed money lenders have to be verified by the Ministry of Law, certain businesses may attempt to go against the rules and regulations. The best way to find out more about the professionalism and reliability of the money lender you’re interested in is to search for reviews on Google or online forums like HardwareZone Forums and the Singapore subreddit page.
Relatives, colleagues, or friends who have taken up loans from licensed money lenders are reliable sources of information too.
2. Do not approach lenders who advertise via SMS or email
You may have received text messages that advertise loans with suspiciously low interest rates. Advertising loans via text messages is prohibited and all licensed money lenders should not advertise their business via SMS, social media, instant messaging services, or email.
However, if you find that a licensed money lender has sent you an advertisement on a prohibited channel, do steer clear of it. It might just result in harassment should you end up applying for a loan with this company. Licensed money lenders who do not comply with the rules and regulations tend to behave inappropriately towards their clients.
What’s more, they’re running a real risk of having their money lending licence revoked by the Ministry of Law.
3. Do now allow them to retain any of your personal documents
Licensed money lenders will never ask to keep the original copy of your personal documents, whether it’s your NRIC or passport. If the company suggests that you leave your documents in their hands to receive quick loan approval, walk away immediately.
While short-term loan options like payday loans are usually paid off quickly, lenders are not permitted to hold on to their clients’ documents, no matter the duration of the loan.
4. Make a police report if things get out of hand
Even if you take all the precautions in the world but still find yourself dealing with harassment from a licensed money lender, report them to the police immediately. This will most likely result in the lender undergoing a strict investigation, which could very well result in them losing their licence.
Choosing a trusted licensed money lender is crucial when you’re in great need of emergency funds. Dio Credit is a reputable and licensed Ang Mo Kio money lender that has been in business ever since 2013.
Our experienced loan executives will never resort to underhanded tactics for repayment and will ensure that the loan options presented to you are the perfect fit for your financial situation and capabilities. Make an application online or visit our office in Ang Mo Kio for a personalised quote.