This tutorial explains how to spot an illegal moneylender in Singapore. We will do our best for you to understand this guide. I hope you will like this blog, How to Spot an Illegal Money Lender in Singapore. If your answer is yes, please share after reading this.
Check how to spot an illegal money lender in Singapore
Singapore’s economy continues to grow and attracts investors from around the world. Lending activity has increased significantly, especially in recent years. Unfortunately, some exploiters take advantage of borrowers’ ignorance and defraud them. UML is the term for “unlicensed money lending”. This is a person who is illegally in the lending business and is often known in Singapore as “Ah Long” or “usurer” who lends money to other people.
UML is a completely unacceptable and very dangerous practice because it relies on unregulated methods. Loan sharks often approach desperate borrowers to defraud them. Their actions and methods are harmful and unacceptable to society, as they may even resort to violence to get what they want. Most of them go to great lengths to steal and make it look like they are legal. In this article, we will show you how to spot an illegal money lender in Singapore.
How to Spot an Illegal Money Lender in Singapore
Loan sharks are generally not as brutal and violent as portrayed in the movies. Although violent threats are always possible and a concern, most try to trick borrowers into signing contracts. Even unlicensed lenders, or loan sharks, have evolved over time, extending their shady dealings to the internet. All the more reason for people to be careful with their money online. Unlicensed lenders can operate in different ways, so it’s best to check for any activity that indicates they might be loan sharks.
Here are some things to keep in mind before signing a loan agreement with a lender:
No physical address? must be a loan shark
Are you trying to borrow money from a lender? Let him know that you prefer a personal visit to sign a contract and confirm the address. If the lender is trying to divert the conversation away from their place of business, they may be dealing with an unlicensed lender.
Approved lenders in Singapore are required by law to have a physical location for their business which you must visit to verify the loan agreement in person.
If you also contact online lenders, it is best to pay attention to contact information, especially a landline number. An email address, social media page, and website are easy to find, but a landline phone requires more detailed documentation that dodgy lenders are unlikely to have.
Remote loan request? This could be loan shark behavior
More licensed lenders in Singapore are going digital. Borrowing money online and getting approved is more convenient and safer in light of recent events.
However, Approved Lenders also include questionable lenders who are in the process of adapting their business model. The growing number of remote loan applications gives them more opportunities to cheat people with their money.
Approved lenders insist on personal verification before approving your loan. However, loan sharks will approve your request via text, phone call or email without a physical contract just to complete, and they will likely transfer the loan amount directly to your bank account.
Therefore, if you receive a loan from a lender without going through the proper legal process and verification, you need to make sure whether it is approved or not.
SMS and advertising calls? He is an illegal money lender
It’s the digital age and there are new ways to advertise. You’ve probably received text messages about loans before, but that’s not really something an approved lender should be doing, and it’s a good sign that you’re getting loan shark inquiries.
The Singapore Ministry of Justice requires approved lenders to use appropriate channels, such as:
- Business or consumer directories in the written press.
- Advertisements placed outside or inside the lender’s approved place of business.
- Websites belonging to the lender.
This means that text messages, phone calls, Whatsapp, emails or even flyers outside your business building were where you heard about the lender; this is a sign that they are probably not allowed to practice methods that are not legal in Singapore.
So if you are in the middle of the loan process with a lender who has contacted you via text message, immediately block the number and borrow money elsewhere. Instead, scour business or consumer directories for approved lenders to secure your loan from a reputable dealer in Singapore.
Unsecured site? they look like moneylenders
The digital nature of a modern loan application requires the borrower to disclose sensitive personal information. For this reason, it is important to pay attention to the websites you are asked to use during the process.
One sign Singaporean borrowers should be aware of is the padlock symbol next to the web URL. This means that the website is secure and borrowers’ personal information is protected.
Another clue is the quality. If you look at the loan application websites of banks in Singapore, you will notice that the user interface is clean and clear and the speed is good thanks to proper web hosting. Unapproved lenders and loan sharks often don’t have enough money to maintain their website, which can affect overall operation.
Final Words: How to Spot an Illegal Moneylender in Singapore
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