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Licensed moneylenders see rise in business
SINGAPORE - More people have been approaching licensed moneylenders since the opening of Singapore's two casinos about a year ago.
The Moneylenders' Association of Singapore has seen about a 40 per cent jump in the number of loans offered.
Punters hoping to make a quick buck are turning to them to fund their gambling habit.
Figures from the Law Ministry's Insolvency and Public Trustee's Office showed an 8 per cent increase in the number of licensed money lenders in 2010 compared to the year before.
As of the end of December, there were 239 licensed moneylenders compared to 221 in 2009.
The number of such companies joining the association has also gone up three times in just one year. There were 50 in 2009 and 160 currently.
But dealing with problem gamblers is a somewhat risky business for these agencies - especially when borrowers struggle to pay off interest rates which can amount to 18 per cent per annum.
Mr David Poh, president of the Moneylenders Association of Singapore, said: "Gamblers, you know, are harder to collect from (compared to) normal lenders. They use the money, they borrow, they go gamble again."
Debt recovery companies MediaCorp spoke with said they were also getting busier.
Mr Alex Toh, the co-owner of debt recovery company, Tri-Credits, said: "The good point is sales has increased, the bad point is that our recovery cases are getting more difficult. Because everybody is giving excuses like they lost money at the IR, they can't afford to repay back such a big amount."
To address this problem, Mr Poh's association has put up a blacklist of people deemed risky borrowers on its website.
For a nominal fee, members of the public can access the site and key in their relative's name on the list.
Mr Poh said about 20 to 30 spouses have been banned since last year and the numbers are increasing.
The number of mediation cases the association handles is also on the rise, with about three to five cases daily.
Moneylending companies also spoke of another worrying trend -- younger borrowers, those in their 20s, struggling to pay off debts.
SINGAPORE - More people have been approaching licensed moneylenders since the opening of Singapore's two casinos about a year ago.
The Moneylenders' Association of Singapore has seen about a 40 per cent jump in the number of loans offered.
Punters hoping to make a quick buck are turning to them to fund their gambling habit.
Figures from the Law Ministry's Insolvency and Public Trustee's Office showed an 8 per cent increase in the number of licensed money lenders in 2010 compared to the year before.
As of the end of December, there were 239 licensed moneylenders compared to 221 in 2009.
The number of such companies joining the association has also gone up three times in just one year. There were 50 in 2009 and 160 currently.
But dealing with problem gamblers is a somewhat risky business for these agencies - especially when borrowers struggle to pay off interest rates which can amount to 18 per cent per annum.
Mr David Poh, president of the Moneylenders Association of Singapore, said: "Gamblers, you know, are harder to collect from (compared to) normal lenders. They use the money, they borrow, they go gamble again."
Debt recovery companies MediaCorp spoke with said they were also getting busier.
Mr Alex Toh, the co-owner of debt recovery company, Tri-Credits, said: "The good point is sales has increased, the bad point is that our recovery cases are getting more difficult. Because everybody is giving excuses like they lost money at the IR, they can't afford to repay back such a big amount."
To address this problem, Mr Poh's association has put up a blacklist of people deemed risky borrowers on its website.
For a nominal fee, members of the public can access the site and key in their relative's name on the list.
Mr Poh said about 20 to 30 spouses have been banned since last year and the numbers are increasing.
The number of mediation cases the association handles is also on the rise, with about three to five cases daily.
Moneylending companies also spoke of another worrying trend -- younger borrowers, those in their 20s, struggling to pay off debts.
