Changes to Moneylenders Act?

Posted by admin
on February 17, 2015

After the recent case of harassment from debt collectors at a food court, there has been much talk about the governing of licensed moneylenders in Singapore. Now, rules are being reviewed and tightened, so as to better protect borrowers, especially those who come from lower income backgrounds.

The Moneylenders Act is now amended so that the Registry of Moneylenders have greater enforcement powers, which in turn helps in safeguarding borrower’s information from unlicensed moneylenders. Now, the registry can engage any person to help conduct frequent and stringent enforcement checks on moneylenders. Sharing information on borrowers with unlicensed moneylenders is now against the law.

Some other changes to the act includes mandating the use of Effective Interest Rate instead of the current Nominal Interest Rate for loans. Effective Interest Rate takes into account the compounding effect of the frequency of instalments. This means that the actual cost of borrowing is made more transparent and easy to see.

The last amendment to the Act was in 2008 but ever since, the moneylending landscape has changed and grown so much. These changes is timely and some may perhaps even find it overdue.

Changes to the Act affects about 243 licensed moneylenders in Singapore and will take effect from June onwards, giving the industry some leeway to adjust to the amendments.

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Choose a licensed moneylender, loansharks are nightmares.

Posted by admin
on February 8, 2015

We spoke to Alison, a 56 year-old mother of two who once borrowed a sum of money from loansharks and she called it a nightmare. Thinking that a small sum is okay and that she will be able to repay it soon or if not, since it was just a small sum of $2000, they would be lenient and give her time to repay her debt. Alison was not prepared for the nightmare that she was about to face. Always choose a licensed moneylender, loansharks are nightmares, she says.

From being a low-profile person to becoming someone the entire neighbourhood was talking about, Alison still feels traumatised by it. The loanshark runners did not even start small. They wrote her name all over the walls on the common corridor and splashed paint in every colour on her front door. One day, Alison woke up to her gate being padlocked and she was not even able to leave her house. People starting to talk about her. Whenever she went to the market or the food centre, all eyes were on her and she was embarrassed by all the attention.

Alison was almost forced to become a runner herself as she could not repay her debts. Luckily, a group of friends decided to help her out and she got out of her debt. From a small sum of just $2000, she ended up paying $8000 to the loansharks before they let her off the hook.

Alison’s story serves as a reminder that borrowing from loansharks should not even cross your mind. If you really need money, go to a licensed moneylender. There are many licensed moneylenders in Singapore who are regulated and who will not threaten and harass you like how loansharks do. Give us a call or drop us a visit! Quick Credit is your reliable Singapore moneylender.

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