When we choose a licensed 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 lender could resort to unwarranted ways of chasing you for repayment, which often constitute money lender harassment.
Under the law, authorised 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.
To give you a leg up, here are some ways to recognise harassment from money lenders, tips to prevent licensed money lender harassment from happening, and when to report a money lender.
How do I know if a money lender is threatening me?
Has this question popped up in your head: ‘Is a money lender threatening me?’ 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 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 lenders should always communicate with their clients politely and not resort to threats or verbal abuse. Furthermore, licensed lenders are allowed to make phone calls to you only during business hours, not odd 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 lender and you should be kept private and confidential.
Other forms of harassment by money lenders include threats to damage your property (i.e. home, car, etc) or taking part in unlawful assembly (a group of at least five people) to intimidate and collect debt. Money lenders who take actions in such forms will have to undergo investigations by the police.
Tips to prevent licensed money lender harassment
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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 lenders are reliable sources of information, too.
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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 lenders should not advertise their business via SMS, social media, instant messaging services, or email. In fact, they’re only allowed to advertise through three platforms: websites owned by the lender; consumer or business directories (either online or print media is fine); advertisements put up within or on the exterior of a money lender’s office premises.
However, if you find that a licensed lender has sent you an advertisement on a prohibited channel, steer clear of it. It might just result in money lender harassment should you end up applying for a loan with the said company. Licensed 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.
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Do now allow them to retain any of your personal documents
Licensed 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. It’s likely you’re dealing with an illegitimate lender, hence susceptible to harassment by a money lender later down the road.
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. If this continues, you might need to report the money lender.
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Report the money lender to the Registry of Moneylenders 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 money lender, report them to the Registry of Moneylenders at 1800-2255-529 immediately. This will most likely result in the lender undergoing a strict investigation, which could very well result in them losing their licence.
Ensure you work with a legal lender like Dio Credit
Harassment from a money lender can be avoided as long as you take the necessary precautions. Start by verifying if a lender is under the list of licensed lenders by MinLaw. But if the lender begins to show unlawful behaviour or threatens you, make sure you report the money lender.
Choosing a trusted licensed lender is crucial when you’re in great need of emergency funds. Dio Credit is a reputable loan company in Singapore that is fully licensed, and has been in business 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 loan quote.
