This tutorial is about How to Spot an Illegal Money Lender in Singapore. We will try our best so that you understand this guide. I hope you like this blog, How to Spot an Illegal Money Lender in Singapore, If your answer is yes, please do share after reading this.
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Check How to Spot an Illegal Money Lender in Singapore
Singapore’s economy continues to grow and attracts investors from around the world. The lending business has grown tremendously, especially in recent years. Unfortunately, some exploitative individuals take advantage of borrowers’ ignorance and defraud them. UML is the term for “unlicensed money lending.” This refers to a person who is illegally in the lending business and is often known in Singapore as “Ah Long” or “loan loan shark” who lends money to other people.
UML is totally unacceptable and very dangerous practice as it is based 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’re 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 they are portrayed in movies. While violent threats are still possible and cause for concern, most try to get borrowers to sign contracts through fraud. Even unlicensed lenders, or loan sharks, have moved with the times, extending their shady dealings to the Internet. All the more reason for people to be careful with their money online. Unapproved money lenders can operate in a variety of 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 any lender:
No physical address? must be a user
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 tries to steer the conversation away from his business location, he may be dealing with an unlicensed lender.
Licensed lenders in Singapore are required by law to have a physical location for their business that you must visit to verify the loan agreement in person.
If you’re also contacting lenders online, it’s 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 questionable lenders are unlikely to have.
Remote loan application? That could be the behavior of the loan shark
More and more licensed money lenders in Singapore are going digital. Borrowing money online and getting approved is more convenient and safer in light of recent events.
However, licensed 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 out of their money.
Approved lenders insist on personal verification before approving your loan. However, loan sharks will approve your application via text, phone call or email without a physical contract just to finish, and they will probably 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 that they are licensed or not.
SMS texts and calls for advertising? That’s an illegal money lender
It is the digital age and there are new ways to advertise. You have probably received SMS about loans before, but this is not really an activity that a licensed lender should do and it is a good sign that you are receiving requests from loan sharks.
The Singapore Ministry of Justice requires authorized lenders to use the proper channels, such as:
- Directories of companies or consumers in print media.
- Advertisements placed outside or inside the place of business approved by the lender.
- Websites belonging to the lender.
This means that SMS, phone calls, Whatsapp, emails or even flyers outside your company building were the places where you heard about the lender; it is a sign that they are probably not licensed to practice methods that are not legal in Singapore.
So if you are in the middle of the loan process with a money lender who contacted you via SMS, block the number immediately and borrow cash elsewhere. Instead, browse business or consumer directories to find approved lenders to get your loan from a reputable dealer in Singapore.
Website not secure? sounds like users
The digital nature of a modern loan application requires the borrower to disclose sensitive personal information. For this reason, it is important to be careful about the websites you are asked to use during the process.
One sign that 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 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 due to proper web hosting. Unapproved lenders and loan sharks often don’t have enough money to maintain their website, and this can affect the overall function.
Final words: How to Spot an Illegal Money Lender in Singapore
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