32 licensed moneylenders breach new advertising guidelines
By Imelda Saad | Posted: 21 November 2011 1507 hrs
SINGAPORE: Thirty-two licensed moneylenders have been found to have breached new and stricter advertising rules under the Moneylenders Act.
Since November 1, moneylenders are allowed to advertise only through specific channels such as in business directories, on their business website or at their business premises.
They are no longer allowed to advertise through other channels, in particular newspapers and Short Message Services.
Giving an update in Parliament on Monday, Law Minister K Shanmugam said all those who have breached the law have been warned.
They have since complied with instructions to rectify the breaches.
If they repeat the breaches, their licences may be revoked and they may face prosecution in court.
Mr Shanmugam added that the Registry of Moneylenders does not impose a quota on moneylending licences. What it has done is to impose rigorous requirements on licence applicants and licensees.
For example, as part of the application process, the registry conducts robust checks on the applicant and all other persons involved in his business to ensure that they are fit and proper persons.
The registry also requires all moneylending business outlets to be managed by a qualified manager.
Mr Shanmugam said: "Where advertisements were found to be by unlicensed moneylenders, they have been referred to the police for investigation. As mentioned in this House before, we will keep a close watch on the moneylending industry.
"We are reviewing other aspects of the industry and will take further steps to tighten regulation and protect the interests of borrowers, whenever necessary."
- CNA/al
