In Singapore, private money lenders are doing good business, mainly because they are favored by the general public more and also because the government itself encourages people to avail of different credit systems. The government of Singapore has a list of approved debt consolidation plan. Now, these private money lenders under the ministry of law list are all verified and approved of. They have licensed money lenders.
These unlicensed money lenders are working illegally, and they also make use of shady tactics to make victims pay back the money. This is the main difference between licensed and unlicensed money lenders in Singapore.
But many citizens are not aware of the list provided by the ministry of law. They tend to be at a greater risk of getting duped or even harassed by these private money lenders.
There are millions of licensed money lenders in Singapore; among them, the Visite crawfort website is one. They are legit and safe.
How Do The Unlicensed Money Lenders Operate In The Singapore Circle?
Like any criminal, they work illegally. The government does not approve of them, and hence if the government catches them, they have the risk of going to jail for illegal transactions. But these criminals have adopted creative ways to full the police of Singapore as well as the public. They forge documents, use applications like Photoshop, etc. to create original looking documents to make them seem legit.
They then target innocent people and send them a text like, “Do you need money?” “You can avail low-interest-rate loans now!” and the innocent people take the bait. Once they ask for a loan, they send them a document bearing the ministry of law sign. As soon as the loan is disbursed, they keep asking for their money back. The borrowers are constantly harassed until they pay back the whole amount.
Recently in September, the Singapore government caught hold of a criminal team that was targeting millions of Singaporeans. Thousands were duped of their money. They all claimed that they thought they were dealing with legitimate money lenders as they all received a document with the ministry of law sign on it. They shared their bank accounts and other confidential information with them, which put them at a major risk.
How Do You Know If You Are Dealing With An Unlicensed Money Lender?
Some major red flags should tell you to stay away from dealing with them. Whenever money is involved, you have to be extra vigilant to make sure nothing goes wrong. Here are some of the signs that you should look for.
Are They Mentioned On The Ministry Of Law List Or Not?
The first thing to check is the ministry of law list that gives you all the names that are verified by the government officials. If you cannot find the name of the moneylender on it, then clearly he is operating without a license.
Licensed Money Lenders Will Never Send You Texts Or Call You To Ask If You Need Money
Does it not sound weird that a stranger would know if you need money at the moment or not? How can he or she know that you need money and text you or call you to ask if you need a financial help? No legit money lender will get out and try and find customers because they know that when you need money, you will reach out to them and not the other way around. It is only the unlicensed money lenders that adopt such tactics to lure in individuals who are desperate for cash.
Always Be Wary Of Really Low-Interest Rates And Other Deals That Seem Too Good To Be True
Super-low interest rates should not be making you jump up in joy, but it should make all the alarms in your head go off. Every borrower looks for low-interest rates to reduce the principal amount, but if you come across a deal that has super-low interest rates, do not just jump in to sign the papers. You may not know, but it may have several hidden costs and terms.
Check out the crawfort website; they are a licensed money lender that offers excellent interest rates so that anyone can apply for loans.
Check Their Website
All money lenders should have a website of their own, that customers can check to see the services they offer and other information like contact information etc. It should also state their office address. If the website looks ancient and only has a bunch of HTML text, that is a red flag right there.
If possible, you should head to their office to verify their identity. Talking to then face to face and get all your queries cleared out is better than calling them and talking to them on the phone. Verifying their identity is a must to make sure you are not giving away your personal information to someone who might misuse it.
Read The Fine Prints On The Contract
Legit money lenders will send you a contract as soon as you apply for a loan, and then they will wait for you to sign it before disbursing the loan. If they do not send you a contract specifying the repayment time and terms, interest rates, and the principal amount, you should cancel the loan application immediately. Insist on a written contract, once you receive the contract, read all the fine prints, and then provide your signature. Do not skip them.
Did You Get Verbally Abused For Defaulting A Payment?
Licensed private money lenders do not use blackmail or any vulgar language with their customers if they default a payment. If you are have been at the end of receiving some colorful language and lots of harassment, then you are most probably dealing with an unlicensed moneylender. They may also blackmail you or use other scary methods to extract money from you.