Money Lender Singapore

Things A Licensed Money Lender In Singapore Can’t Do When Collecting Debts

Reaching out to a licensed moneylender can make you feel nervous. That’s understandable; people in financial difficulties go through an array of feelings, from fear to self-blame.

Plus, there’s the terror from horror stories where debt collectors harass you or become violent.

Here’s the deal: Licensed moneylenders would never do that. Only loan sharks and those illegal lenders will resort to threats and harassment.

You should be afraid of the ah long. These people can send expensive delivery to your home, pictures of burning houses, and even photos of your kids.

But licensed moneylenders are highly different. You can find one of the best licensed moneylenders in Singapore here.

Before you fall into any traps, it’s best to know what you’re going into. Learn what authorised financial institutions can’t do when collecting debts so that you can protect your rights. Be vigilant and identify the signs.

What Can A Licensed Moneylender Do?

The Ministry of Law in Singapore has arranged and regulated licensed moneylenders’ activity. They have rules to follow, if not they risk losing their moneylending license.

Side-note: You can read more about that in the Moneylenders Act, as well as on the Registry of Moneylenders’ website. In fact, RoM has a handy FAQ page with everything you need, including the list of licensed moneylenders operating today in Singapore.

Pro tip: Check your licensed moneylender’s name on that list to ensure you’re not dealing with a loan shark. The list is updated every month.

So, since MinLaw regulates licensed moneylender’s activity, you know these agencies follow strict laws. These laws make sure:

– Your data stays confidential – Your privacy is respected – You’re not being assaulted, harassed or threatened in any way by the moneylender – If you can’t repay the loan, the moneylender can only follow legal procedures to recuperate that money.

So why do even licensed moneylenders get such a lousy street rep?

Here’s what caused it all: These lending agencies employ debt collector companies to retrieve the money from people who can’t reimburse their loans. MinLaw allows them to do that, so there’s nothing illegal here.

The problem was that some of these debt collectors employed massive scare tactics or even used violence when people couldn’t fork out the money.

Thankfully, a lot of that problem has been resolved.

In 2013, debt collectors formed a new association called the Credit Collection Association of Singapore (CCAS). MinLaw doesn’t regulate CCAS, but this association has a Code of Ethics that abolishes unreasonable tactics. Luckily, debt collectors in Singapore follow CCAS standards.

Also, you can read that Code of Ethics to learn which practices you should report in case you’re dealing with someone who breaks the law.

And there’s even better news: Most debt collectors in Singapore are passionate about helping people, and that’s why they took this job. So if you can’t repay your loan, a good debt collector can help you renegotiate your terms: – You can propose a new plan, and the debt collector will negotiate the new terms with your lender, or: – You can discuss your situation with them, and the debt collector will propose alternatives to your current repayment scheme.

Unfortunately, some parts of the problem remain.

For example, debt collectors in Singapore are still allowed to: – Contact your friends and family – Call you

– Drop by your house or office – Contact you on social media Pro tip: Debt collectors that GS Credit works with don’t use exaggerated scare tactics. GS Credit respects all of our borrowers and we have never had a complaint about our debt collection methods. You can read our customers’ reviews here. We ensure that all procedures are done professionally!