Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4/11

[Yip Hon]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

Licensed moneylenders doing checks on loan applicants

by Amanda Feng 04:47 AM Jun 15, 2011


SINGAPORE - Licensed moneylenders are becoming more careful about who they lend to,

now that most of them are members of DP SME Commercial Credit Bureau.

Membership in a credit bureau gives companies access to databases on a potential debtor's payment history. And with more than 200 industry players joining in the last 12 months, they are also the fastest growing group of new credit bureau members.

Licensed moneylending company Next Credit, for instance, decided to do so due to business needs.

"By allowing us to view debtors' information, we'll then know if we should reject a customer because of issues like bad debt history," said partner Willie Lin.

And with moneylenders on board, the database will also have records of people who have borrowed from these new members of the credit bureau.

"Some people keep borrowing but have no intentions to repay," noted Moneylenders Association of Singapore president David Poh.

For some moneylenders such as I-Credit, the drop in defaults across its portfolio of loans has been as much as more than half.

Some moneylenders, however, did not find much positive returns.

Mr Jimmy Kang of Win Credit told MediaCorp it did not renew its licence with the credit bureau after it expired and had no plans to do so because it felt the information on bankruptcy and bad debt was not "sufficiently updated".

But the benefits of membership could also apply to potential debtors. Mr Kent Phua of I-Credit said the ability to do a credit check benefits applicants, by denying loans to some debtors who will only sink further into the red.

The jury is out at this point, though, on whether the potential for lower risk of defaults for moneylenders will lead to a reduction of their interest rates, which have attracted criticism for some time now.

When contacted by MediaCorp, licensed moneylender A1 Credit said it was "possible", depending on factors such as the amount of bad debts.

 

[drifter]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

most of licensed moneylender boss are decent looking businessman ..only his workers look like ah beng ..im not surprise they are member of Credit Bureau. looks like money lending going to be a serious business in singapore .

 

[Narong Wongwan]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

most of licensed moneylender boss are decent looking businessman ..only his workers look like ah beng ..im not surprise they are member of Credit Bureau. looks like money lending going to be a serious business in singapore .

Define decent looking..........cannot judge a book by its cover.......anyway you say decent looking only.........that means not exactly decent is it?
Whats big deal about joining Credit Bureau? Relevant business pay money can join liao....if anything it give another false layer of legitimacy that's all.
Next step is to change the naming to 'finance companies' like HK....

Money lending is going to be BIG business no doubt about that....just see how many lives will be ruined.

 

[drifter]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

Define decent looking..........cannot judge a book by its cover.......anyway you say decent looking only.........that means not exactly decent is it?
Whats big deal about joining Credit Bureau? Relevant business pay money can join liao....if anything it give another false layer of legitimacy that's all.
Next step is to change the naming to 'finance companies' like HK....

Money lending is going to be BIG business no doubt about that....just see how many lives will be ruined.

ok..i will say that the boss got the gong gong look . of course not decent ...by the way which businessman is decent ?

what i mean is that they join credit bureau is a good way to detect those chowka ..

 

[Yip Hon]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

ok..i will say that the boss got the gong gong look . of course not decent ...by the way which businessman is decent ?

what i mean is that they join credit bureau is a good way to detect those chowka ..

LML nowadays want good , big , and nice ones ( clients ) ...


very funny ...

 

[BCR101]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

Bro Yip , heard that LML now also jilat ...

Some LML are now recycling client's name and data

( without client's knowlege ) to churn borrowing volume

and or for other laundry purpose ...

Good luck to LML ... Dont get caught ...

 

[Yip Hon]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

Bro Yip , heard that LML now also jilat ...

Some LML are now recycling client's name and data

( without client's knowlege ) to churn borrowing volume

and or for other laundry purpose ...

Good luck to LML ... Dont get caught ...

Thks for info : THESE LMLS ARE WORSE THEN

LOANSHARKS . CURRENTLY THE LML MARKET

IS LIKE A COWBOY TOWN ( FREE FOR ALL ) . NO

GOVT CONTROL ...

 

[sgloancritic]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

As you have quote my blog, and I have also update periodically.

The fact is: Loansharking is now legal as long as you have a license. It is better to give them license and tax them rather than chase after them when they splash paint and vandalize walls.

So these legal loanshark now charge double of what illegal ones are offering.

To counter illegal prostitution, they allow brothels,
To counter illegal gambling, they allow casino
To counter illegal money lending, they allow license loansharks.

Feel free to comment and share on my blog: at
http://sgloancritic.blogspot.com

We can't stop this from happening and can't eliminate them as they had multiply.
At least we can let people know what to expect and think twice before they borrow from this license loansharks.

 

[GoldenDragon]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

To counter illegal prostitution, they allow brothels,
To counter illegal gambling, they allow casino
To counter illegal money lending, they allow license loansharks.

To counter illegal soccer betting, they allow Pools to collect soccer bets;
To counter the lack of M'sian gals in licensed brothels, they facilitated the entry of PRC gals;
To counter low revenues from Pools, they open up more off-course betting centres.

 

[Yip Hon]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

As you have quote my blog, and I have also update periodically.

The fact is: Loansharking is now legal as long as you have a license. It is better to give them license and tax them rather than chase after them when they splash paint and vandalize walls.

So these legal loanshark now charge double of what illegal ones are offering.

To counter illegal prostitution, they allow brothels,
To counter illegal gambling, they allow casino
To counter illegal money lending, they allow license loansharks.

Feel free to comment and share on my blog: at
http://sgloancritic.blogspot.com

We can't stop this from happening and can't eliminate them as they had multiply.
At least we can let people know what to expect and think twice before they borrow from this license loansharks.

To Counter When Screwed Up , They Ready To Say :

Its Something That Happened In 50 Years Lets Us Learn From It ...

 

[Yip Hon]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

.

Loan sharks go online to recruit teens

July 8, 2011 - 10:46pm
By:
Gan Ling KaiMaureen Koh



FACEBOOK, in online games, coffee shops and schools.

These are the places loan sharks are striking at to get hold of teenagers to do the dirty work of distributing their name cards and fliers advertising their illegal services.

One 13-year-old student told The New Paper that she got the job after responding to an advertisement made on Facebook during the school holidays.

She dialled the number and was instructed to meet at an MRT station, where she was given a stack of name cards by a woman and made to sign a "job contract".

 

[Yip Hon]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

.


http://www.tnp.sg/content/cops-round-80-youth-loanshark-crackdown
.

Cops round up 80 youth in loanshark crackdown

July 8, 2011 - 1:18am
By:
Gan Ling Kai



THEY were looking to make a quick buck during their school holidays, but they could have wound up on the wrong side of the law instead.

About 80 youth were rounded up by police yesterday and brought to Bedok police station for investigations in a two-day operation conducted across the island that also saw the arrest of four adults.

The alleged source of trouble for the youth aged between 12 and 21? Distributing name cards and fliers which advertised loan shark activities.

One girl, a 13-year-old Normal (Academic) student, was offered the job while playing an online game.

.

 

[Yip Hon]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

To counter illegal soccer betting, they allow Pools to collect soccer bets;
To counter the lack of M'sian gals in licensed brothels, they facilitated the entry of PRC gals;
To counter low revenues from Pools, they open up more off-course betting centres.

.

http://www.straitstimes.com/STForum/Story/STIStory_692061.html

.

ST Forum

Home > ST Forum > Story


Jul 19, 2011



Moneylending: Tell us and we'll probe, replies registrar



WE REFER to Mr Anthony Lim's letter ('Tactics were similar to those of loan sharks'; last Wednesday).

The Registry of Moneylenders strictly regulates and inspects the operations of

licensed moneylenders to ensure compliance with the Moneylenders Act and Rules, and will not hesitate to take

enforcement action against moneylenders who breach the law. Errant moneylenders could face warning, suspension, non-renewal or revocation of licence and, where there are even more serious breaches of the law, prosecution.

Borrowers, on their part, should take note of the terms and conditions of a loan, and should also carefully assess their own ability to service the loan, before entering into a loan agreement.

The Registry has made available on our website a guide to borrowers listing the factors to consider when obtaining a loan. The guide is in the Moneylending section under IPTO Services at www.ipto.gov.sg

Mr Lim stated that he was informed by the moneylender about the terms and conditions of the loan, including the repayment terms and forfeiture clause.

As we are unable to assess from these facts alone whether any breach of the Moneylenders Act and Rules has occurred, we would be grateful if Mr Lim can contact the Registry of Moneylenders at [email protected] so that the Registry may obtain further details.

Alice Tan (Ms)
for Registrar of Moneylenders
Insolvency and Public Trustee's Office
Singapore



.

 

[Yip Hon]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

Jul 19, 2011
Distributing fliers: Police acted properly

MS NG Wee Chew ('Police methods'; last Tuesday) criticised the manner in which young part-timers, some barely teenagers, were handled by the police in a mass arrest for the distribution of fliers for loan sharks.

The police have done an excellent job since the loan-shark menace emerged years ago and went into overdrive.

Some parents are overly protective of their children or rely on maids and teachers to groom their children, when it is squarely the parents' responsibility.

As a father of two young adults, I have never failed to discipline my children, even with the cane when they got out of line during their school years. If we, as parents, fail to discharge our responsibilities, eventually society and the law will take over when our youngsters stray.

While I can understand that a 12-year-old is young and underage, the sad fact is that today's criminals are getting younger and bolder.

The police have done an excellent job in nipping the loan-shark problem in the bud.

Arthur Lim

 

[Yip Hon]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

.

NO.0000 THE MONEYLENDERS ACT (CHAPTER 188)
List of all existing moneylenders registered in the Republic of
Singapore, as at 30th June, 2011, published in accordance with the
provisions of subsection (1) of Section 7 of the Moneylenders Act :‐
(A) MONEYLENDER'S LICENCE​

.



.

 

[GoldenDragon]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

[QUOTE Moneylending: Tell us and we'll probe, replies registrar

They have about 5 staff, no investigators or investigative arm. Probe what? Backside?

 

[Yip Hon]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

[QUOTE Moneylending: Tell us and we'll probe, replies registrar

They have about 5 staff, no investigators or investigative arm. Probe what? Backside?

Bro G D,


Got action already . see here :



http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_694793.html



Singapore
Home > Breaking News > Singapore > Story
Jul 26, 2011
First licensed moneylender charged
Clampdown by the authorities comes amid rising concern over how these lenders operate
By Mavis Toh



A LICENSED moneylender yesterday became the first to be hauled to court under rules designed to stamp out abuses in the industry.

Singaporean George Phua Chye Hee, the founder of Capital Alliance Credit, faces about 90 charges, including giving false information to the Registry of Moneylenders (ROM) and failing to properly inform borrowers of the terms of loan.

Read the full story in Tuesday's edition of The Strait's Times.





George Phua Chye Hee, founder of Capital Alliance Credit, allegedly:
•Gave false information to the Registry of Moneylenders


•Handed out loans without proper documentation


•Lent excessively to low-income earners


•Failed to inform borrowers in writing about the terms of their loans


•Made contracts in which the interest rates were not clearly stated

 

[inhaler]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

Even bank also resort to debt collection co to collect debts.
you can't pay your credit card bill , they will engage debt collector go your office , send legal letter to your office , threaten to send legal letter to yr boss , freeze your salary , WTF .....bloodly CB bank . shouldn't MAS be controlling all this shit !!!
IF not money pay bank ...sue bankrupt lah , then bank can engage debt collector to harras the customer ? !!
Bank and money lender no different....
the government should put all this to an end , rules to stop bank and money lender harras those debtors at their work place . Only causing them lose their job .
Is there an agency to lodge complain bout this bank

 

[sleaguepunter]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

No such thing exists.

Even debt collectors have no right to harrass. Some people even believe there are licensed debt collectors. In reality, there is no such thing as a licensed debt collector. You just need to register a company. Debt collectors have no extra powers to collect debts. They employ psychological pressure. For instance, standing outside your door and talking to you in a manner which attracts the attention of your neighbours. Some even wear a jacket with the wordings, 'debt collector' behind.

hehe... u r right. i encounter debt collectors wearing those jacket banging on my upstair neighbour door. They knocked on my door first, then found out they got off the lift on the wrong level. door number correct by wrong floor. They purposely show off their "ang gong" with their short sleeve t shirt and put up the gangster look. They look like ex con to me (i plenty of experience of contacting ex cons as my kampong neighbour was an AST bigshot, many of his underlyings were ex con) but they apologies for their mistake and when upstair to raise hell.

As much as LML or LS are in overcharging interest, the borrower went into the transaction with his/her eye open. Take money beri fast, repay then many excuses. mata shd haul both parties to changi resort. LS charge for operating without license while borrower for fraud.

u claim SPool lack money so open more off course betting centre but why turfclub who also facing falling revenue close OBCs or restrict entry numbers in operating OBCs. And why SPools which accept horse betting refuse to accept bets after 5pm on weekend. KNN, i prefer to bet at OBCs so that can have physical betting slip as a record rather than betting over the phone. (sorry to sidetrack)

 

[Yip Hon]

Re: Licensed MoneyLenders + Police Report = Licensed Loan Shark ? ;Straits Times 22/4

Bro G D,


Got action already . see here :



http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_694793.html



Singapore
Home > Breaking News > Singapore > Story
Jul 26, 2011
First licensed moneylender charged
Clampdown by the authorities comes amid rising concern over how these lenders operate
By Mavis Toh



A LICENSED moneylender yesterday became the first to be hauled to court under rules designed to stamp out abuses in the industry.

Singaporean George Phua Chye Hee, the founder of Capital Alliance Credit, faces about 90 charges, including giving false information to the Registry of Moneylenders (ROM) and failing to properly inform borrowers of the terms of loan.

Read the full story in Tuesday's edition of The Strait's Times.





George Phua Chye Hee, founder of Capital Alliance Credit, allegedly:
•Gave false information to the Registry of Moneylenders


•Handed out loans without proper documentation


•Lent excessively to low-income earners


•Failed to inform borrowers in writing about the terms of their loans


•Made contracts in which the interest rates were not clearly stated

....................



Jul 26, 2011
First licensed moneylender charged
Clampdown by the authorities comes amid rising concern over how these lenders operate
By Mavis Toh


A licensed moneylender yesterday became the first to be hauled to court under rules designed to stamp out abuses in the industry.

Singaporean George Phua Chye Hee, the founder of Capital Alliance Credit, faces about 90 charges, including giving false information to the Registry of Moneylenders (ROM) and failing to properly inform borrowers of the terms of loan.

The case comes as the authorities clamp down on licensed moneylenders with suspect business practices, amid growing concern over how some lenders have been operating.

Black sheep in the industry have been in the news for charging exorbitant interest rates similar to those of loan sharks, not explaining loan terms clearly to borrowers, and for unprofessional service.

Last year, eight licences were revoked and four not renewed, because the holders had breached the Moneylenders Act or rules.

The Act was amended in November 2008 to give borrowers additional safeguards, while allowing moneylenders to grow their operations.

But this is the first time a moneylender has been charged with contravening it.

Phua is said to have handed out loans without proper documentation and lent excessively to people on low incomes, court documents show.

For example, he allegedly gave a borrower earning less than $20,000 a year an unsecured $4,400 loan. Under the law, loans to low-income earners are capped at $3,000.

He is also accused of failing to inform borrowers in writing about the terms of their loans and making contracts in which the interest rates were not clearly stated.

In one case, he is said to have made a contract with a borrower for a $6,500 loan at 1.5 per cent-a-month interest, when the actual loan was $5,000 at a monthly rate of 10 per cent.

The 41-year-old also allegedly lied to the ROM and provided it with false information in his quarterly statements.

The prosecution will be proceeding with 30 charges, and taking the rest into consideration.

His licence was granted in May 2009 but the registry decided not to renew it a year later amid concerns over his firm’s operations.

It is believed that the ROM launched an investigation into Phua’s firm after receiving complaints about it.

Licensed moneylenders contacted yesterday said they were surprised at the tough stance the ROM is taking.

Mr David Poh, president of the Moneylenders’ Association of Singapore, said: “It shows that the registry is going all out to tell moneylenders they can’t abuse their licences any more.”

Mr Alvin Sie, the association’s coordinating officer, said the court case will “wake up” errant moneylenders who are failing to make sure borrowers understand the terms of loans.

Another moneylender, who declined to be named, said he will now be extra careful to make sure borrowers are aware of what they are signing up for, to avoid the risk of complaints.

When the Act was amended in 2008, the moneylending industry was also modernised to allow licensed lenders to set up branches and to advertise more freely.

The industry grew from 169 operators in 2007 to the current 267. But the lenders also attracted plenty of criticism.

Last year, the ROM received 64 complaints against them, up from 18 in 2009.

The complaints included failing to explain the terms of loans to borrowers and not issuing receipts for cash payments.

Licensed moneylenders are required by law to tell borrowers upfront the terms and conditions of loans, and a written contact must be drawn up in a language that the borrower understands.

To raise professionalism, applicants for a licence or anyone responsible for the management of the business must now also pass a written test on the Moneylenders Act and its rules.

Mr Poh said: “Moneylenders must be more professional and aware of the harsh consequences that could be against them if they do not conduct their businesses properly.”

George Phua Chye Hee, founder of Capital Alliance Credit, allegedly gave false information to the Registry of Moneylenders, handed out loans without proper documentation, lent excessively to low-income earners, failed to inform borrowers in writing about the terms of their loans, and made contracts in which the interest rates were not clearly stated.