When you apply for a loan from a licensed money lender in Singapore, you can be assured that strict regulations are in place to protect you.
Importantly, once you secure a loan, the last thing you want to face is illegal or unethical debt collection practices.
Therefore, while licensed money lenders can collect their dues, there are things that they cannot do to get back what they owe.
6 Things a Licensed Money Lender in Singapore Cannot Do
1. Harass the Borrowers
One of the things that licensed money lenders in Singapore are not allowed to do is harass people. Debt collectors mustn’t threaten, intimidate, or pressure you for payment. For instance, they can’t call you incessantly all day and night or show up at your door uninvited.
Notably, if you feel that their method is discomforting at any time, you can always complain to the Ministry of Law.
2. A Licensed Money Lender in Singapore Cannot Charge exorbitant or usury fees
The money lenders cannot overcharge you since the law with regard to the fees does not permit that.
For instance, they can only be allowed to charge late fees on condition that there is a failure of payment, and this is controlled by the government in terms of the amount being charged.
Collection fees and excess interest rates are illegal, among many other charges. Therefore, it is essential to know the terms of the loan agreement before acquiring one so that you may point out the breach of the contract if the money lender tries to impose some unjust charges on you.
3. Seize Your Property Without Court Orders
Another thing you need to know is that a licensed money lender can’t take your property. Your car or house can’t be taken because you cannot pay on time.
Usually, the money lender ought to seek the interference of the courts so they can attach any of your property. This means there should be a court judgment and an enforcement order against you before taking anything that belongs to you. Such being the case, you have nothing to fear if they threaten to take stuff from you without the court’s ruling.
4. Physical Violence
There should not be any physical violence. A licensed money lender shall not employ or threaten to employ physical force to compel you to pay your dues.
Violence entails everything from harassment to the infliction of physical injury, and it is illegal. In case a money lender employs any form of violence, you should report them right away to the proper authorities in case this happens.
5. Public Shaming or Slander
The licensed money lender should not make your debt a public affair. For instance, they should not release information concerning your debt to your family members, friends, or colleagues or embarrass you in public areas.
Your personal financial matters are yours to handle alone, and the lender cannot use your reputation against you. Therefore, if any lender does this, it is already a breach of privacy laws.
6. False Claims or Misrepresentation
A licensed money lender should not misrepresent anything to you. For instance, they should not lie about their authority, what they owe, or even the consequences for failing to pay.
When a lender misrepresents some information to hoodwink or scare you into paying them something, that is illegal, and you need to see an attorney.
Conclusion
By understanding your rights as a borrower, you can avoid problematic situations with money lenders. You know that your rights are protected by law, and you are prepared to take action if you encounter any unethical practices by always reporting any violations and asserting your rights.
Lastly, stay informed, and don’t allow any money lender to take advantage of you. At JeffLee Credit, we help our clients understand their rights for guaranteed peace of mind, even when facing financial challenges. Contact us for advice on everything to do with loans from a moneylender.