Licensed Money Lender Harassment in Singapore: What You Need to Know

Key Takeaways

• Licensed lenders cannot harass: Threats, intimidation, stalking, property damage, or physical harm are strictly prohibited.
• Professional communication is permitted: Lenders may contact borrowers or close contacts to discuss repayment, but must remain polite and lawful.
• Report misconduct immediately: Contact the police or Registry of Moneylenders (RoM) if you experience licensed money lender harassment.
• Document all interactions: Keep records of calls, messages, or emails to support complaints or legal action.
• Seek safe borrowing alternatives: Licensed lenders like Prosper Credit follow ethical practices, ensuring transparent and permissible loan management.

Borrowing money can be stressful, and the fear of harassment often makes it worse. Stories of borrowers being threatened, stalked, or intimidated by illegal lenders, usually called loan sharks, are common in Singapore. However, licensed money lender harassment is strictly prohibited under the law. Licensed money lenders operate under the Moneylenders Act, which sets clear boundaries for their conduct and ensures borrowers are protected.

Many borrowers wonder what happens if they cannot repay a loan. Questions such as “What if a money lender is threatening me?” or “Am I at risk of harassment from a money lender?” are natural concerns. Understanding what legal lenders can and cannot do will help you feel safer and better prepared.

What Licensed Money Lenders Are Allowed to Do

Licensed lenders and their debt collectors can take specific legal and ethical actions. These include:

1. Contacting You Directly
   Licensed money lenders can reach out through phone calls, emails, or social media to discuss repayment options. These communications must remain professional and non-threatening.
2. Contacting Family or Friends
   If you default on a loan, a licensed lender or its debt collector may contact close family members or friends to inform them about your debt. They cannot, however, threaten, intimidate, or insult anyone.
3. Visiting Your Workplace
   Licensed debt collectors may visit your office to request a meeting about your loan. Such visits must be polite, professional, and focused on discussing repayment, not intimidation.
4. Negotiating Repayment Plans
   Licensed lenders often work with debt collectors to propose repayment solutions that suit your financial situation. This includes adjusting repayment schedules, suggesting structured repayment schemes, or mediating through the voluntary welfare organisations such as the Credit Counselling Singapore (CCS) to find mutually agreeable terms.

Prohibited Practices for Licensed Money Lenders

Even licensed lenders have strict boundaries, and any form of harassment by a money lender is illegal. They cannot:

1. Threaten, Intimidate, or Insult
   No one can threaten or abuse you or your family. The Protection from Harassment Act explicitly prohibits such behaviour, including verbal threats, online insults, or intimidation tactics.
2. Engage in Unlawful Stalking
   Following you, monitoring your movements, or repeatedly visiting your home or workplace with the intent to intimidate constitutes stalking, which is illegal.
3. Cause Physical Injury
   Causing harm, from minor injuries to serious disfigurement, carries severe penalties under Singapore law. Licensed lenders and their debt collectors are prohibited from any form of physical violence.
4. Vandalise Property
   Writing, painting, or damaging your property is an offence under the Vandalism Act. Licensed lenders or debt collectors cannot take such actions to pressure borrowers.
5. Damage or Take Your Assets Without Legal Authority
   No lender can seize your home, car, jewellery, or other property without a Writ of Seizure and Sale issued by a Singapore court. Threatening to do so is a criminal offence.
6. Organise Unlawful Assemblies
   Gathering people to pressure you in a mob-like fashion is illegal. Any attempt at intimidation through numbers, even outside your home, can result in legal action.

Questionable Practices Some Debt Collectors May Use

Licensed lenders often employ licensed debt collectors to manage repayments. While most debt collection agencies operate professionally, a few may use scare tactics. Recognising these illegal actions as harassment from a money lender is crucial.

Debt collectors can contact you or your family professionally to remind you of debts, visit your office, or communicate repayment options. However, any threats, insults, or intimidation fall under money lender harassment and should be reported immediately. Consumers can reach out to the Credit Collection Association of Singapore (CCAS) to lodge a complaint against an errant member debt collection agency in this regard.

Where to Get Help for Licensed Money Lender Harassment

Even with regulations in place, harassment can occur. If you experience harassment by a money lender, the first step is to protect yourself.

Contact the Police

If a money lender is threatening you with force and/or violence, or you experience severe harassment from a money lender such that you no longer feel safe, contact the police immediately. Singapore provides multiple channels for making police reports:

• Emergency hotline: 999 – for immediate threats or danger
• Emergency SMS (if you cannot speak): 70999
• Police hotline (crime reporting & information): 1800 255 0000

Promptly contacting the authorities allows them to advise on protective measures, including applying for a Protection Order, and ensures that any illegal actions by the lender or debt collector are addressed.

Contact the Registry of Moneylenders (RoM)

The RoM handles complaints about licensed lenders who breach the law, including harassment or charging unlawful interest. Verified complaints may result in fines or penalties for the offending lender.

You can file a report with the Moneylenders Registry or contact them at 1800-2255-529.

A Money Lender Is Threatening Me: What Should I Do

If you face licensed money lender harassment, it is crucial to act quickly. Document all communications, including calls, emails, or messages, and report any money lender misconduct to the authorities. Licensed debt collectors and lenders must follow ethical practices, so any behaviour outside lawful negotiation is actionable.

Proactively managing debt is another key strategy. Communicating with your lender, renegotiating repayment plans, or exploring structured schemes like the Moneylender Debt Management Programme (MDMP) or credit counselling services can provide safe, legal ways to manage repayment woes.

Conclusion

Dealing with debt can be stressful, but understanding your rights against licensed money lender harassment ensures safety and peace of mind. Licensed lenders in Singapore are bound by law to operate ethically, without threats, intimidation, or violence.

If you experience money lender harassment, report money lender misconduct immediately to the police or RoM. Working with licensed lenders guarantees a secure and straightforward borrowing process. It helps you manage debts legally while safeguarding your personal safety and privacy. Remember, harassment from a money lender is illegal, and the law is on your side.

For borrowers seeking a safe, trustworthy solution, highly rated Prosper Credit offers professional, licensed lending services that strictly adhere to Singapore’s Moneylenders Act. With Prosper Credit, you can access loans confidently, knowing your privacy, integrity, and rights are fully respected. Speak to our team or apply today for a transparent and hassle-free borrowing experience.