Licensed moneylenders are regulated by the government to ensure that borrowers are treated fairly. They have a set of rules they must follow, and this includes not using threats, intimidation or harassment when collecting on a debt. If a debt collector does any of these things, it is illegal and you should report them to the police immediately.

In addition, they must always provide you with a full copy of the loan agreement before signing it. If a lender does not do this, you should find another moneylender that is more transparent about their terms and conditions. This will help you avoid any surprises down the line.

Moneylenders must also make sure that they do not charge you more than the interest and charges allowed by law. They must give you a clear breakdown of all the charges and interest rates on the loan. The total amount of these charges must not exceed the principal sum of the loan. Moneylenders are also prohibited from offering top-up loans, which would further increase your debt.

Unlike loan sharks, legal moneylenders will never display any threatening words or images on your property. They cannot splash “O$P$” on your door, hang banners with bills and slogans, or write profanities on your car. This is considered illegal and can land them up to a fine of $1,000. If you do encounter this type of behaviour, you should report it to the police as they take this seriously.

The same goes for any threatening letters or emails that you receive from a legal moneylender This includes any that suggest that you should commit suicide or that you will be arrested for not repaying the loan. You should report these to the police as soon as possible, and you should also seek professional assistance if necessary.

You should only work with a licensed moneylender, and you can verify their license on RoM’s website. You should also be aware of the fact that they can only send agents to your home to collect repayments, not to start new loans. If they try to do so, you should report them to RoM immediately.

It is important to choose a legal moneylender that specializes in the area that you need help with. For example, some lenders specialize in providing personal loans for low-income individuals, while others offer long-term mortgages to high-income families. Before you choose a lender, make sure to read reviews and testimonials to find out which one is the best for your situation.

In addition, a legal moneylender will always prioritize the security of your identification documents. They will never retain original documents like your passport or NRIC and will return them to you promptly after obtaining copies for their records. They will also be careful to retrieve your details through secure means such as Singpass so that they are not at risk of losing them. They will not keep any of your documents for more than necessary and will never use them to identify you outside their business premises.

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