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April 17, 2009
Loanshark cases up
Government signals strongly that borrowers too may face action
By Sujin Thomas & Teh Joo Lin
WHEN times are bad, loansharks start surfacing.
In just the first three months of the year, police had to deal with nearly 4,000 cases over their harassment tactics. That is double the number in the same period last year.
VIDEO
Loanshark offences up
(0:57)
i-witness
(0:53)
It has become so bad that police are considering nailing those who borrow from loansharks as well.
Said Deputy Prime Minister and Home Affairs Minister Wong Kan Seng yesterday: 'This will hold borrowers accountable if their reckless borrowing or gambling habits endanger the safety and security of the community.'
Another reason he gave for making such borrowing an offence: Many borrowers end up working as syndicate runners to pay off their debts, extending the circle of crime even further.
This is the second time that the issue of making borrowers pay, so to speak, has been raised. In February last year, the ministry said it would study a proposal to punish those who go to loansharks to feed their gambling vices; and who abet loansharking activities.
If the ministry goes ahead, it will be yet another step to curb illegal lending made over the years. Stiffer penalties were put in place in 2005, to double the maximum punishments for first-time loansharks to a $200,000 fine and a two-year jail term.
A rise in certain crimes like loansharking activities and cheating usually accompanies economic downturns as more desperate people turn to illegal ways to get money. During the 1998 Asian financial crisis, the number of crime cases rose 8 per cent over the previous year's. During the 2003 Sars-induced recession, it rose by 5 per cent.
To help people obtain cheap credit from legitimate sources, the Moneylenders Act was changed just last November to ease some existing restrictions on advertising, methods of loan disbursements and collection of payments, as well as interest rates.
Mr Wong, who was speaking at a seminar at Republic Polytechnic to discuss the work plan for the police force for the coming year, also said that new tools are being employed to arrest loansharks.
April 17, 2009
Loanshark cases up
Government signals strongly that borrowers too may face action
By Sujin Thomas & Teh Joo Lin
WHEN times are bad, loansharks start surfacing.
In just the first three months of the year, police had to deal with nearly 4,000 cases over their harassment tactics. That is double the number in the same period last year.
VIDEO
Loanshark offences up
(0:57)
i-witness
(0:53)
It has become so bad that police are considering nailing those who borrow from loansharks as well.
Said Deputy Prime Minister and Home Affairs Minister Wong Kan Seng yesterday: 'This will hold borrowers accountable if their reckless borrowing or gambling habits endanger the safety and security of the community.'
Another reason he gave for making such borrowing an offence: Many borrowers end up working as syndicate runners to pay off their debts, extending the circle of crime even further.
This is the second time that the issue of making borrowers pay, so to speak, has been raised. In February last year, the ministry said it would study a proposal to punish those who go to loansharks to feed their gambling vices; and who abet loansharking activities.
If the ministry goes ahead, it will be yet another step to curb illegal lending made over the years. Stiffer penalties were put in place in 2005, to double the maximum punishments for first-time loansharks to a $200,000 fine and a two-year jail term.
A rise in certain crimes like loansharking activities and cheating usually accompanies economic downturns as more desperate people turn to illegal ways to get money. During the 1998 Asian financial crisis, the number of crime cases rose 8 per cent over the previous year's. During the 2003 Sars-induced recession, it rose by 5 per cent.
To help people obtain cheap credit from legitimate sources, the Moneylenders Act was changed just last November to ease some existing restrictions on advertising, methods of loan disbursements and collection of payments, as well as interest rates.
Mr Wong, who was speaking at a seminar at Republic Polytechnic to discuss the work plan for the police force for the coming year, also said that new tools are being employed to arrest loansharks.
