Loan sharks masquerading as licensed moneylenders

[Sun Ce]

Jul 4, 2011

Loan sharks masquerading as licensed moneylenders

They tout services via fliers, online ads, but are not on approved list

By Mavis Toh

Don't fall prey
HOW ILLEGAL MONEYLENDERS OPERATE

They ask for the borrower's identity card number, address, SingPass ID and password.

With all that, they can get details of the borrower's income and confirm his address.

Some also ask whether the borrower has outstanding debts with others.

Loans and repayments are through bank transfers. Cheques are more the norm for legal moneylenders.

HOW TO AVOID BEING TRICKED

Check the Insolvency and Public Trustee's Office website (app2.ipto.gov.sg) to see if the moneylender is licensed.

Do not sign an empty contract. Licensed moneylenders must draw up a written contract in a language that the borrower understands.

Do not allow the moneylender to keep your identity card, passport, work permit, employment pass, ATM card or other documents.

A flier for an illegal moneylender at the grille gate of a Bishan flat. Such moneylenders offer quick, hassle-free loans at exorbitant interest rates, and ask for borrowers' confidential SingPass information and passwords so they can get personal and financial data. -- ST PHOTO: LAU FOOK KONG

ILLEGAL moneylenders pretending to be licensed operators are becoming brazen, dropping fliers and name cards at the doorsteps of flats and on car windshields across the island.

Some are also advertising their services on classified websites such as 88DB.com and gumtree.sg

Touting themselves as licensed operators to unsuspecting borrowers, they offer quick, hassle-free loans at exorbitant interest rates through bank transfers - not unlike the way loan sharks operate.

A check by The Straits Times found at least 10 such operators advertising on various sites online. None of them is on the Insolvency and Public Trustee's Office's list of licensed moneylenders. Some list company names such as Jenny Finance and Javier Credit. Others simply leave a number and go by names such as Apple and Ivan.

Several of them returned calls made to them last week using overseas numbers, and said they were based abroad but had workers in Singapore. One even said he had an office on Jurong Island.

All eight contacted asked for the caller's confidential SingPass information and passwords to access his Central Provident Fund accounts and get personal and financial data.

Read the full story in Monday's edition of The Straits Times.

[email protected]