You may already be familiar with harassment by illegal money lenders and understand the importance of avoiding them. Unfortunately, even some legal money lenders in Singapore have been found to engage in harassment, particularly towards customers who are behind on payment. This highlights the issue of licensed money lender harassment.
The Ministry of Law reports that 44 licensed lenders have faced convictions for various offences since 2011. While this may not represent the entire industry, it’s important to be vigilant. Perhaps you start to wonder, what should I do if I experience harassment from a money lender or a money lender is threatening me?
Whether you’re presently repaying a loan from a licensed lender or considering obtaining one, make sure to read this article. It will provide insights into your rights and guide you on what to do if, unfortunately, you become a victim of money lender harassment.
First of all, let’s talk about what licensed lenders can and cannot do.
Singapore’s Ministry of Law oversees the moneylending industry through the Moneylenders Act. To maintain their money lender licences, all lenders need to adhere to the Ministry of Law’s rules and regulations.
What are licensed lenders authorised to do?
Licensed lenders are allowed to take steps to recover their loans.
This includes engaging the services of debt collection agencies, however, harassment by money lenders is strictly forbidden. These debt collection agencies also have to follow the Code of Ethics set by the Credit Collection Association of Singapore (CCAS). The law prohibits harassment from a money lender or debt collection agency in debt recovery processes.
They can contact you at your home or office.
Licensed lenders are permitted to send letters to your house pertaining to your loan, call and visit you at your home or office stating that their purpose of contacting you is regarding the loan.
Licensed lenders may also apply for a court order.
If their application is successful, you may need to pay for their legal fees in addition to your existing loans.
But what are licensed lenders NOT authorised to do?
Licensed lenders are not allowed to resort to harassment, threats, or intimidation.
They cannot cause physical harm to you and your loved ones, too.
You might be wondering, what if the money lender is only threatening me verbally? The answer is no, that’s not allowed either. They also can’t use abusive language, such as vulgarities and insults. They’re also not allowed to stalk their debtors.
In short, any form of harassment by money lenders is not allowed.
They’re also not allowed to damage your properties.
This includes vandalism, such as writing profanities or splashing paint on the wall. They’re also not allowed to paste a notice about your debt on your door or hang an embarrassing banner.
Licensed lenders cannot take your properties.
Without the court order, licensed lenders or the debt collection agencies they engage cannot simply turn up at your house and start confiscating your valuables.
What to do to protect yourself from licensed money lender harassment?
Foremost, keep calm and report the money lender as soon as you can. To facilitate investigations, ensure you document the harassment incidents as clearly and descriptive as you possibly can.
What should I do if I’ve become a victim of licensed money lender harassment?
Even though uncommon, instances of licensed money lender harassment do occur. If unfortunately, you’ve become a victim of a licensed money lender harassment, there are several steps you can take to protect yourself.
But first, do not panic and follow these steps to protect yourself, report money lender harassment, and seek help.
1. Get help from the police.
If you feel that your life is in danger and you need immediate assistance, call the police at ‘999’. If you’re unable to speak, you can also SMS 71999. It’s the Singapore Police Force’s SMS text messaging platform specially created for anyone who requires emergency assistance but is unable to make a call at that instant.
To assist authorities in their investigation and report money lender harassment, document the incidents and take down as many details as possible. Do include the date and time, the location, what exactly happened, and get the contact of anyone who can be a witness.
2. Contact the Registry of Moneylenders
If your licensed lender is harassing you or engaging in illegal behaviours, you can report these money lenders to the Registry of Moneylenders. Doing this would not only help yourself but also others who might become a victim.
If you’re worried about retaliation and further harassment by your money lender, rest assured your details will be kept safe and confidential by the registry.
It is safe and necessary to protect yourself from licensed money lender harassment
Protecting yourself from money lender harassment is a smart, educated choice. Don’t endure harassment in silence. Harassment from a money lender should not be tolerated under any circumstances.
For a reputable, law-abiding licensed lender in Singapore, choose Synergy Credit. We are a legal loan company in Singapore that prioritises ethical practices, negotiates fair repayment plans, and strictly adheres to a code that forbids us from engaging in any form of licensed money lender harassment. Contact us today for reliable loan offerings or if you’re ready, apply online in just a few minutes.
