Licensed money lender harassment: Tips to prevent it from happening to you

Phone call from unknown number representing licensed money lender harassment

When we choose a licensed moneylender over an illegal loan shark, we expect a certain standard of conduct and professionalism that illegal moneylenders usually do not have. However, in certain cases, things may go south and your licensed moneylender could result in unwarranted ways to get in contact with you, which is considered harassment. Under the law, licensed money lenders have a certain code of conduct that they have to comply with, which includes respectful business dealings with their clients. Sometimes, you may not even realise the licensed money lender harassment that you are experiencing so here are some ways to recognise harassment and tips to prevent it from happening to you. 

Type of actions performed by licensed lenders that are considered harassment

Recognising licensed money lender harassment can be tricky especially when you do not expect it from a verified company. You may also brush it off as common behaviour but these actions by licensed lenders are not permitted. A clear sign of licensed money lender harassment is when your lender starts to use abusive or threatening language on you. As a certified business, licensed money lenders should always communicate with their clients professionally and not resort to insulting language. Furthermore, licensed money lenders are permitted to only make phone calls during working hours. If your lender persistently calls you after hours, this will be considered licensed money lender harassment. Your lender should also only be in contact with you and not any of your family members or friends. If your lender pesters your loved ones for your whereabouts, this is considered a breach of conduct. Finally, any business between your lender and you should be kept private and confidential. Therefore, if your lender ever attempts to display a letter of demand at your home or even moves to social media to announce your payment details, they will have to undergo investigations by the authorities.

Helpful tips written on wood with light bulb next to it symbolise the tips needed to avoid money lender harassment

Tips to prevent licensed money lender harassment

1. Search up reviews of the lender before borrowing from them 

Even though licensed moneylenders have badge numbers that are verified by the Ministry of Law, certain lenders may attempt to go against their regulated guidelines. The best way to find out the professionalism and reliability of your lender of choice is to search for reviews on Google or online forums. These sites will usually have transparent reviews of the lenders to give you a better idea of their work ethic. 

2. Do not approach lenders that advertise through SMS or email

You may have experienced receiving text messages that advertise cheap loans and interest rates. These text messages are prohibited under the law and any licensed and certified lender should never advertise their business through text messages or emails. However, if you find that a licensed lender that is certified on the ministry website has sent advertisement messages, you will want to steer clear of them as it could result in licensed moneylender harassment down the road. These lenders that do not comply with ministry regulations tend to behave inappropriately towards their clients. 

3. Walk away if they attempt to retain any of your personal documents 

Licensed money lenders will never ask to keep any of your personal documents such as your NRIC or your SingPass details. If your licensed lender suggests that you leave your documents in their hands for a quick loan agreement, such as a payday loan, walk away immediately. While payday loans are usually paid off within a month, lenders are not permitted to hold onto their clients’ documents no matter the duration of the loan. 

4. Report to authorities if it gets out of hand

Even if you take all the precautions but still find yourself dealing with harassment from your licensed moneylender, report them to the authorities immediately. You can make a police report and the lender will have to undergo strict investigation, which could result in them losing their license. 

Choosing a trusted money lender is an important step in maintaining assurance and a sound mind especially when it comes to your finances. Ang Mo Kio money lender, Dio Credit, is a certified and established licensed lender that provides a range of loans and affordable rates for every client. They uphold strict professionalism and confidentiality with their clients to ensure a smooth and efficient transaction. 

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