Record fine of $314,000 imposed on errant moneylender
AsiaOne
Wednesday, Jun 05, 2013
SINGAPORE - The Registry of Moneylenders, a division of the Insolvency and Public Trustee's Office, brought charges in the Subordinate Courts on Jun 25, 2012 against licensed moneylender Lee Pit Chin, the sole proprietor of moneylending business, James Lee Credit.
Lee held a moneylending licence from Jul 1, 2009 and Jun 30, 2010, which was not renewed after it expired as he was then under investigation for offences which possibly warranted prosecution.
On May 31, 2013, Lee pleaded guilty and was convicted on 30 out of 90 charges.
Seven charges related to granting an unsecured loan exceeding the prescribed limit of $3,000 to a Singapore borrower with an annual income below $20,000.
Four charges related to granting an unsecured loan to a Singapore borrower with annual income of at least $20,000 but less than $30,000, and thereby causing the outstanding loan amount to exceed the prescribed limit of two months of the borrower's income.
Three charges related to granting an unsecured loan to a Singapore borrower with an annual income of at least $30,000 but less than $120,000, and thereby causing the outstanding loan amount to exceed the prescribed limit of four months of the borrower's income.
The remaining 16 charges related to recklessly furnishing false information to the Registrar.
The other 60 similar charges were taken into consideration by the Court for the purposes of sentencing.
Lee was sentenced to a fine of $314,000 (in default 46 weeks' imprisonment).
This is the highest fine imposed on an errant moneylender since 2011.
Eleven licensed moneylenders have been convicted and fined since 2011.
The Registry carries out regular inspections of licensed moneylenders. Where breaches of moneylending laws are found, enforcement measures are taken, including the suspension or revocation of licences, forfeiture of security deposits, warnings and prosecutions. Those convicted of breaches of the Moneylenders Act and Rules face a fine of up to $40,000 and/or an imprisonment term of up to two years on each charge.
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