As the pandemic continues and cases of harassment by loan sharks increase, it`s good to keep the latest modus operandi to stay on top of what we all need to pay attention to as debtors to protect ourselves from the heinous acts of unauthorized lenders. You can also email them to loanshark@scdf.gov.sg. All information is kept confidential, allowing members of the public to report cases of harassment with loan sharks anonymously. Approved lenders are bound by professional standards of conduct and do not use abuse, threats or harassment. You`ll also be willing to renegotiate your loan if you`re having trouble paying off your debt. The individual was allegedly charged with harassment by loan sharks, theft, dangerous driving and other drug-related offences. If you or someone you know is being harassed or unsavory antics by loan sharks, follow these tips. The COVID-19 pandemic in Singapore has not stopped loan sharks and their runners from harassing their debtors. Despite the implementation of circuit breaks that restrict travel in Singapore to essential activities, loan sharks have begun using food delivery services to harass people who owe them money. These loan sharks placed food orders with the debtor or their relatives and demanded reimbursement from them. You can call 999 or call the X-Ah Long hotline on 1800 924 5664 to report harassment of loan sharks in Singapore or if you suspect someone is involved in such activities. However, this is easier said than done. Loan sharks are aware of their illegal status and will be careful not to reveal their identity.
First-time offenders who support loan sharks can be sentenced to up to four years in jail with a fine of $30,000 to $300,000 and up to six strokes of the cane for men. On the other hand, loan sharks offer to deposit the money into your bank account remotely under the guise of convenience. Make no mistake; This is probably because they don`t want to maintain a registered business address that can link them to their illegal activities. In case you accidentally borrow from a loan shark, it`s best to follow these steps: Loan sharks also charge an additional upfront fee to make more profit. As a result, banks may require borrowers to deposit collateral to secure their loans or limit the loan-to-value ratio. You might be less likely to lend to someone with a low credit score. It is difficult to understand why a global financial centre like Singapore still has a relatively widespread presence of loan sharks. According to a 2017 World Bank survey, there is no shortage of more than 97 percent of Singaporeans aged 15 and over have their own bank account, and there is no shortage of laws and support programs that promote monetary security, regulate borrowing, provide credit counseling, and financially support people.
Since loan sharks usually present themselves as reputable licensed lenders who are willing to help comfortably and easily, desperate people fall into these traps without realizing it until they are caught. Others choose loan sharks simply because they cannot obtain credit from banks or financial institutions due to bad credit. One of the country`s main goals is to ensure that debt is properly regulated by numerous laws that ensure that people cannot get a loan that they cannot repay. Loan sharks often send threatening messages to their victims to scare them into paying. You can send these messages via SMS, WhatsApp, emails, or even flyers. Loan sharks often include their contact information and a request for payment. On the other hand, it is not illegal to run debt collection agencies, and there is no specific law governing what debt collection agencies can and cannot do. It is not uncommon for debt collectors to use tactics of intimidation, violence, vandalism and harassment. However, Singaporeans should note that these agencies are subject to Singapore`s criminal laws, even if their activities are legitimate. The Loan Shark Helpline is a service set up by the Singapore government to help people who have borrowed money from loan sharks.
The helpline advises and supports victims of loan sharking and allows them to report loan shark activities. For those who want to provide information on loan sharking activities, they can call the police helpline at 1800-255-000 or 999 for urgent cases. Members of the public can also call the National Crime Prevention Council`s “X Ah-Long” helpline at 1800-924-5664 if they have information about loan sharks. That said, borrowing loan sharks in Singapore is always a bad idea. Here are some ways to spot a loan shark. If loan sharks harass you, the first thing you should do is contact the police. The police will be able to investigate the case and take appropriate action against loan sharks. While licensed money lenders are another option, they may not meet the requirements of a person who desperately needs a lot of money. The Lenders Act limits the amount of unsecured loans that can be loaned. In Singapore, loan sharks are known to use harassment methods to collect their debts.
One of the recent results of Singapore`s police crackdown on loan sharks and other illegal establishments was a raid in which 36 people between the ages of 26 and 63 were arrested for their crimes. The Loan Shark Singapore helpline is a valuable resource for anyone who has been touched by loan sharks or wants to avoid becoming a victim in the future. Licensed money lenders can be a source of relief, even temporarily. However, what happens when you borrow loan sharks here in Singapore? The average illegal lender in Singapore charges between 20% and 60% per month. This means that if you borrow S$100 from a loan shark, you will have to pay back S$120 to S$160 within a month. A loan shark will often provide an empty contract to blind you with his unfair terms. However, money lenders are required to disclose the terms of the loan in simplified language that the borrower can understand. Lenders who cannot provide a physical address are likely to engage in illegal practices. Loan sharks can be found anywhere – in your neighborhood, on the Internet, or even through your personal network. There are thousands of them in Singapore alone. As you might expect, loan sharks or unlicensed lenders will not offer or only an incomplete loan agreement that contains vague terms or is even completely empty, which they then fulfill at their own discretion.
Be careful when asked about loan processing fees, also known as administration fees, before your loan is approved. Although the Monetary Authority of Singapore (MAS) introduced provisions allowing individuals to defer payment of principal and interest on student, auto and property loans earlier this year as part of COVID-19 measures, Singapore workers who have been furloughed or laid off need loans to fill them until their next job. In this void, there is room for unauthorized lenders such as loan sharks. FinTech companies like MoneyBank in Vietnam and Lendr in the Philippines finance small amounts that banks don`t normally lend to those without a credit history, using big data to assess risk. When these borrowers have problems, they are also reluctant to contact the authorities for help in resolving the dispute if it is illegal money-lending activities. These are harsh penalties, but harassment by loan sharks continues to occur in Singapore. They even started using new tactics, such as bombing victims with food deliveries home and following them on social media. Unlike loan sharks, licensed lenders will never require payments before you approve your personal loan. Money is a crucial part of our lives, and sometimes we find ourselves in a situation where we have to borrow money from a loan shark. Therefore, as a debtor, it is important to know whether the options available to you are legal or illegal.