Illegal Money Lender And Loan Shark Scams To Watch Out For In Singapore
Singapore has for many years, been fighting against loan sharks. These are lenders who use people’s needs. They will then pose as easy help for you. When in essence, they only want to get all they can from borrowers.
Loan sharks will normally charge 20 percent interest on their personal loans. For instance when a borrower takes a $1,000 loan. The loan shark will only provide $800 and then keep the remaining $200 as interest, when the borrower repays $600 of the loan amount. Even then, the personal loan still is unpaid.
Therefore, the lender may count the repayment to be only $400. Then they keep the $200 as the loan interest. In so doing the borrowers will end up repaying 100 percent interest. When the borrower cannot manage the repayments.
Then their debt will simply keep growing, which means when they cannot pay any longer. These borrowers might choose to become runners. Or they could end up being pawns for loan sharks.
Ways they Cover their Trails
Considering illegal lending is taken as a serious issue for Singaporean police. Loan sharks use different methods to erase their tracks. This is they normally do by victimizing their borrowers.
These lenders will use the phone numbers under the borrowers’ names. In so doing it will be difficult to track them. When the police attempt to look for who the mobile number belongs to. They only end up getting to another borrower.
Often borrowers are made to open bank accounts. Then they are to give the access code and ATM card to the illegal lender. With this, the loan shark will make withdrawals, leaving trails that only go back to the borrower.
When borrowers do not have any way to repay the loan, these lenders persuade them to gamble in ships or outside the country. When the borrowers’ loss, they only end up getting more debts to repay. By doing this, it will be hard to find the lender’s names and traces on anything.
The Risk of Social Media
Today, many people seem to be negligent about having their personal details online. Most illegal lenders will use these details placed on social media accounts. They do so in order to get your private data. As well as any other info that they could use to pressure you.
For this reason, you need to be cautious when you put anything online. This will ensure that you do not end up regretting later on. At the same time, you need to secure your online accounts. You can do so by using passwords and any other safety features.
This will often be provided by social media applications. In so doing your online accounts will not get easily hacked.
Illegal lending Scam Tactics
To retain another person’s SingPass is illegal. Even the licensed moneylenders are not allowed to retain them. When an illegal moneylender scammer takes your SingPass. It is easy for them to acquire your private information. This includes your financial information.
They could falsify your identity then use it to do other criminal transactions. Or access credit from other lenders. From this, you will be left repaying loans that you did not utilize.
When making calls, loan sharks often use offensive language. Even then they might be using another borrowers number. These lenders will threaten you and even make you repay a personal loan. A loan that you may not have taken. Normally they might threaten your family and will continue contacting you. They might do so by SMS or call you. They could even frighten you into putting money in their accounts.
When you have past or outstanding personal loans help with other illegal lenders. Other loan sharks might capitalize on the situation. They might threaten you, saying that they will share the info with the police. It happens that individuals who are mostly victimized by loan shark schemes. They are frightened to seek help from the police, as they are afraid of being embarrassed.
Facebook and other Social Media
Harassment from these lenders does not end at a victim’s doorsteps. They now are using different social media platforms such as Facebook. All with the intent to hassle their victims on the net for everyone to see. They even might send a friend requests to their friends and family. Only to tell them regarding the borrower’s loan.
Harassment and Letters
Other illegal moneylenders will opt to use letters to frighten their victims. These lenders might continue sending letters to you. Even when you have not taken out a loan with them. When for instance they cannot contact you. They might choose to put up the letter on the door for others to see.
Also keeping in mind that Singaporeans think highly of their reputation. Then embarrassment is out of the question. At times these illegal moneylenders will lock the borrowers in their homes. They will use the bicycle locks to do this. Some will set gates and fences on fire.
Time to Come forward
Ah Longs (the illegal moneylenders) in Singapore has been a serious problem. It has been fought against for a while now. It is why the regulations of money lending have become more strict. Campaigns against the ah longs are still on the increase. So is the promotion of using licensed moneylenders. Legal lenders offer flexible loans compared to loan sharks.
When you have information concerning ah long activities, you are encouraged to call 1800-9-24-5664 or 1800-X-AH-LONG. You can use the Police Emergency line (999) or contact the Moneylender’s Registry. Their phone number is 1800-2255-529. you can also use their e-mail: OneMinLaw@mlaw.gov.sg .You can be certain that your details will remain anonymous.
When you know anyone who presently is a victim of an illegal moneylender, you can help them by contacting the X-Ah-Long Service number. We need to work hand in hand and put an end to this terror. This has been brought in the lives of Singaporeans by the illegal moneylenders.