When faced with the predicament of falling behind on loan repayments, you may be concerned about what your rights are and the legal protections you are entitled to. Licensed money lender harassment might also be a point of concern for you.
Well fret not, this article will address those concerns with private money lenders and debunk some common misconceptions around the topic. Read on to find out the answers to questions such as “is the money lender threatening me?”, “what does licensed money lender harassment entail?”, “where can I get help for money lender harassment?” and more.
What does illegal money lender harassment look like?
Harassment by illegal money lenders usually entails violence, extreme vandalism, menacing threats made to the debtor and their loved ones, drastic measures like publicly shaming and naming the debtor, setting fire to the debtor’s home, locking the debtor’s gate with bicycle locks and chains, splashing red paint on the gate and door of the debtor, etc.
Can you get help for illegal money lender harassment in Singapore?
Yes, there are avenues where you can get help for illegal money lender harassment. You may contact the police at 999 or call the X-Ah Long hotline at 1800-924-5664 to report on the illegal money lender.
What does licensed money lender harassment entail?
Let’s define what constitutes harassment from a money lender. The preferred method of money lenders to get what is owed to them is intimidation and scare tactics such as verbally threatening the safety of you and those close to you, and potentially vandalising or damaging your property.
They are likely to try to convince you that you cannot go to the police or feed you false information on what your legal protections are to prevent getting implicated with the law.
What else are licensed lenders not allowed to do?
- Cause injury: In Singapore, it is forbidden for anyone to inflict injury on you, and committing such an act carries a harsh penalty. If a money lender injures you to the extent of rendering you unconscious, the perpetrator may face imprisonment for a maximum of two years, a monetary fine of $5,000, or both.
- Unlawful stalking: Money lenders are not allowed to loiter around your home or workplace, or send you threats.
If you can’t help but wonder about questions like “is the money lender threatening me in these scenarios?”, know that these are not methods that a reputable licensed lender would freely use and are definitely acts of harassment.
What can a licensed lender legally do?
So then this begs the question, what are licensed lenders allowed to do?
To begin with, licensed lenders are obliged to follow the Moneylenders Act, which protects your data privacy and guarantees fair treatment. This means they can only take specific actions to recover debts.
They can initially contact you through phone calls, emails, or SMS during reasonable hours to discuss repayment options. They may also send an official letter of demand and visit you personally to deliver it.
Additionally, licensed lenders can also engage professional debt collectors to do all of the above on their behalf. These debt collectors are bound by a code of ethics set by the Credit Collection Associations of Singapore and are trained in mediation and conflict resolution, so do not hesitate to cooperate with a debt collector as they are invested in ensuring an amicable resolution for both you and your licensed money lender.
If these initial steps are unsuccessful, they might attempt to reach out to your friends, family, colleagues, or employer to inform them about the outstanding debt. Additionally, they could try contacting you through social media platforms.
As a last resort, they can pursue legal avenues like filing a lawsuit, obtaining a court order to garnish your wages, or, in extreme cases, initiating bankruptcy proceedings.
Are you protected from licensed money lender harassment?
Yes, so long as you’ve borrowed from a licensed lender, you are eligible for protection from licensed money lender harassment.
You are also protected by the law from unfair loan terms and conditions, unfair treatments, etc. The same cannot be said for those who’ve borrowed via illegal means.
A victim of licensed money lender harassment? Report the money lender
If you find yourself experiencing harassment by a money lender, you are absolutely within your rights to reach out for help from the authorities and seek support from the relevant organisations.
To report the money lender, your first step should be to contact the police at 999 or text them at the emergency SMS line 71999 if you feel you are in danger, or a severely compromised situation.
It’s important to document all instances of harassment, including dates, times, and details of what happened, before filing a police report. The more information and proof you can share with the police, the better they can serve and protect you.
Another measure is to contact the Registry of Moneylenders at 1800-2255-529, they can initiate an investigation into the matter and take action if necessary. Harassment from money lenders should never be tolerated in silence!
ComCare: 1800-222-0000
Ensure you know your rights and available resources
You are not alone. Understanding your rights and utilising available resources empowers you to navigate financial difficulties effectively and protect yourself from illegal practices. So, your best defence against this is doing thorough research on money lenders that you are interested in working with and choosing reputable licensed lenders like 1-Cash.
At 1-Cash, a legal loan company in Singapore with over 17 years of experience, your financial concerns are our utmost priority. We are committed to collaborating with you on your financial journey and providing the support you need to make that next big leap. We do not condone licensed money lender harassment of any sort at all.
Apply for your loan easily online or feel free to get in touch with us. We are more than happy to assist you.
