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Debt Relief – Insolvency – Bankruptcy Information » Insolvency » Tougher regulations on moneylenders – 13Oct2011

Tougher regulations on moneylenders – 13Oct2011

SINGAPORE: From November 1, moneylenders in Singapore will face tougher regulations and stiffer advertising guidelines. The Ministry of Law said the new measures are aimed at safeguarding the interest of borrowers. Licensed moneylenders will not be allowed to obtain confidential passwords from borrowers, including their SingPass and Internet banking passwords. To obtain a licence, every moneylending business outlet must be managed by a different person who has passed a written test, and whose appointment as manager has been approved by the Registrar of Moneylenders. Moneylenders will also face stricter advertising rules. For instance, they are only allowed to advertise through specific channels, such as bus business directories in print or online media. Furthermore, they will only be allowed to place advertisements within the approved place of business. Print advertisements and pamphlets will not be allowed. Advertisements also cannot contain information which cannot be verified, such as “instant approval” and “highest loan approval rate.” The change comes just two years after advertising rules were relaxed for legal moneylenders. The aim then, was to allow borrowers to make more informed decisions. Sim Ann, Senior Parliamentary Secretary for the Ministry of Law, said: “In 2009, we lifted the restrictions on advertising with the intention of allowing borrowers to have a basis to obtain information about licensed moneylenders as well as the loan packages that they offer so

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One Response to "Tougher regulations on moneylenders – 13Oct2011"

  1. rojakman says:
    Instead of a totally banning advertistment on newspapers, there can be more stringent guidelines on advertisements (e.g. no more than one advertisment per company & and the requirements for operators such as their qualifications etc. Moves like this will make legal moneylending not profitable, disconnect borrowers from legal moneylenders and find it easier and more convenient to borrow from illegal loansharks!

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