Where Can You Get Help For Licensed Money Lender Harassment?

Key Takeaways

Licensed money lender harassment in Singapore can involve persistent and unwanted contact, threatening messages, or visits that create fear or distress. If you experience such harassment, document all interactions, communicate your concerns clearly, and seek legal advice. Report harassment to the police, the Registry of Moneylenders, or the Credit Collection Association of Singapore (CCAS) to protect your rights and ensure the lender adheres to legal boundaries. Understanding these steps helps you effectively address and stop harassment.

In Singapore, where the financial sector is diverse, licensed money lenders play an essential role in providing accessible credit. However, interactions with money lenders can sometimes turn into distressing experiences of harassment. Borrowers must know where they can turn for help and the legal measures in place to protect them.

This guide offers a comprehensive overview of how to identify licensed money lender harassment, understand what actions are legally allowed by money lenders, and learn the steps to take if you become a victim. Being informed is your first defense against unethical practices and ensures you handle such situations confidently and legally.

What Constitutes Harassment From Licensed Money Lenders?

Harassment by licensed money lenders, while less frequent than unregulated loan sharking activities, can still occur. While harassment from licensed lenders might not always be overtly threatening, it can involve persistent and unwanted contact or intimidating behaviour that creates fear or distress.

Examples of Harassment

• Repeatedly calling at unreasonable hours, disregarding your requests to stop.
• Sending threatening messages via SMS or social media.
• Using abusive language or making public shaming attempts to coerce repayment.
• Consistently visiting your residence or office to demand payment

Distinction Between Licensed Money Lenders and Loan Sharks

It’s important to differentiate between licensed money lenders and unlicensed loan sharks. While both may engage in the business of lending money, their methods of operation are vastly different:

Licensed money lenders are regulated under the Moneylenders Act and must adhere to strict guidelines that respect the borrower’s privacy and safety. They are not allowed to engage in threats, intimidation, or physical harassment.

Loan sharks (unlicensed money lenders) typically use illegal practices, such as threats, violence, and public shaming, to enforce repayment. Their actions are not governed by any regulatory framework.

Legal Restrictions on Licensed Money Lenders

The Singaporean law outlines clear boundaries for licensed money lenders, especially concerning their conduct towards borrowers. They are permitted to contact you regarding repayments but must do so in a professional and non-harassing manner.

While they can use debt collectors to manage defaulters, these collectors must also adhere to the same regulations that prohibit harassment.

Legal Boundaries for Licensed Money Lenders

Permissible Actions by Licensed Money Lenders

While licensed money lenders in Singapore are governed strictly by the Moneylenders Act, they can undertake specific actions to recover debts.

Money lenders can make calls to the borrower and not a third party to demand payment for defaulted payments. The calls should be made from Monday to Friday, 8 am to 10 pm, and on weekends or public holidays, 9 am to 9 pm, unless the borrower consents to otherwise in writing.

It is also within their rights to serve a Letter of Demand (LOD) first by mail, second by visiting your residence, and, as a last resort, by coming to your office or place of work. But this should not disrupt your neighbours or colleagues.

If necessary, they are also permitted to speak with someone else in your residence. If you’re not available, they can also serve the LOD to a receptionist or colleague.

Additionally, they can propose or negotiate repayment schedules through direct contact with licensed debt collectors.

Prohibited Practices

The laws also clearly define what licensed money lenders cannot do, and breaching these can result in hefty penalties or revocation of their licenses.

Any form of threat, physical violence, or intimidation, including using words like “watch out”, is strictly prohibited. Using tactics that involve publicly shaming the borrower, such as posting details online or sending derogatory messages, isn’t allowed. Pestering your family members, friends, and colleagues about a borrower’s whereabouts is prohibited. Money lenders can not also use aliases to communicate with you anonymously. This also applies to both phone calls and messages.

Also, following you, excessive and unwanted contact, or any other form of stalking is illegal. Damaging property or engaging in any form of vandalism to coerce payment is a criminal offense that should be reported to the police.

If you’re looking for a reliable lending partner, turn to JNB Credit. We prioritise your dignity and understanding throughout the loan process. For a respectful, clear, and supportive lending experience, apply for your loan today with JNB Credit. We’re here to support you every step of the way.

Ethical Guidelines and Regulations

The Credit Collection Association of Singapore (CCAS) has established a Code of Ethics that all member agencies must adhere to. This includes:

• Respect for Privacy: Ensuring the borrower’s privacy is respected during collection.
• Prohibition of Misleading Tactics: Debt collectors must not use misleading or deceitful tactics.
• Fair Treatment: Collectors are expected to treat all debtors fairly and without discrimination.

Reporting Unethical Debt Collection

If you encounter a debt collector who violates these norms, you have several recourse options. You can direct complaints to the CCAS or the Registry of Moneylenders.

For serious breaches, legal action can be taken under the Protection from Harassment Act.

Steps to Take If You Experience Harassment

Experiencing harassment from a licensed money lender or their debt collectors can be distressing and intimidating. Here are the immediate steps you should take to address the situation and safeguard your rights:

1. Document Everything

Keep a record of all communications, including the date, time, and nature of the interaction. This documentation will be crucial if you decide to take legal action or report the harassment.

2. Communicate Clearly

If you feel harassed, inform the money lender or the debt collector explicitly that their actions are unwelcome and request them to stop. Sometimes, clear communication can resolve the issue before it escalates.

3. Seek Legal Advice

Consulting with a legal professional can provide you with guidance on how to proceed based on the specifics of your situation.

Reporting Harassment

If the harassment does not stop after taking initial steps, it is essential to report the behaviour to the relevant authorities:

1. Contact the Police

If you feel threatened or if the harassment involves any form of violence or stalking, contact the police immediately through:

• Police emergency (for immediate assistance) – 999 or send an SMS using 71999 if you cannot talk.
• Police hotline – 1800 255 0000

2. Registry of Moneylenders

For issues specifically related to the practices of licensed money lenders, the Registry of Moneylenders can be contacted. They can investigate and take action against the lender if they are found in violation of licensing rules.

3. Credit Collection Association of Singapore (CCAS)

If the harassment involves a debt collector, contacting the CCAS can help by sending an email to [email protected] or filing an online form. They can mediate and provide solutions if the collector is a member of the association.

Long-Term Solutions

In addition to addressing immediate harassment, consider these long-term strategies:

1. Debt Management

Work with credit counselling services to manage your debts more effectively and potentially restructure your repayment plans.

2. Public Awareness

Engage in or support public awareness campaigns about borrowers’ rights and the legal obligations of money lenders and debt collectors.

3. Legal Reforms

Advocate for stronger regulations and enforcement to protect borrowers from harassment and ensure fair debt collection practices.

Safeguarding Your Rights Against Harassment

While most licensed money lenders operate within the strict frameworks laid out by regulatory bodies, knowing what to do when faced with harassment is essential for protecting yourself and maintaining your financial health.

Educating yourself about the specific boundaries money lenders and their collectors must not cross helps you identify and respond to any actions that verge on harassment. Being informed is your best defence, ensuring you can advocate effectively for your rights and take swift action when necessary.

Stay vigilant about your interactions with money lenders and promptly report any misconduct. By doing so, you contribute to your safety and the broader effort to uphold ethical lending practices in Singapore.

Ready to Secure a Loan With Confidence?

At JNB Credit, we are committed to upholding the highest standards of integrity and transparency. We understand the importance of feeling secure and respected when obtaining a loan. If you’re looking for a trusted partner in your financial journey, consider applying for a loan with us. You can start your application process today by visiting here and experiencing a respectful lending service.