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How To Avoid Getting Scammed By A Fake Money Lender In Singapore

It’s widespread today to encounter a loan scam and an unauthorised money lender in Singapore. Swindling people out of their money and promising they will be debt-free and get approval is raising concerns.

A licensed money lender in Singapore must adhere to the Ministry of Law’s stringent requirements. In this case, borrowers should use extreme caution to avoid falling prey.

How can con artists trick vulnerable borrowers into giving them money?

What Does A Loan Scam Mean?

A loan scam occurs when the money you borrow is under invented conditions. Scammers commonly bait their victims by making grand claims they can’t keep or failing to disclose important details about the loan.

Scammers in the loan industry will resort to everything to mislead their victims into giving them money. Their motives for extending credit to you typically occur when they collect sensitive data, add on hefty interest rates and other charges, verify your identity and take legal possession of your assets.

A licensed money lender in Singapore provides an alternative, secure option to banking institutions to obtain short-term loans. Private, legitimate money lenders typically have more lenient terms and can accept loans more rapidly.

How To Know If Your Money Lender Is A Scammer?

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1.  You feel uneasy

Con artists frequently demand a quick response from their victims. Scammers and predatory lenders sometimes use a sense of urgency to encourage their victims to ignore warning signs.

Find a money lender in Singapore that will thoroughly walk you through the lending process without asking for immediate signatures.

2.  Guarantee becoming debt-free

Fraudsters frequently make claims about being able to wipe out your debt instantly. They often offer private debt settlements that exploit their clients by taking their funds and applying them to the client’s debts.

Make sure you look for a licensed company that offers a legit debt consolidation loan in Singapore that you will see. However, if you have been paying and notice no change, it’s time to take the appropriate action.

3.  Quick and easy approval

Scammers who offer loans often promise applicants that their loan is guaranteed to be approved. Any consumer should see this as a red flag, as a licensed money lender in Singapore checks borrowers’ credit and asks various questions before making a loan. Moreover, they will have all the required documents for the loan in order.

4.  No financing agreement

Licensed moneylenders will draw up formal contracts outlining the specifics of the loan, including the APR, rate of interest, and repayment schedule. If you plan to take a home renovation loan in Singapore, double-check if they can provide a legal agreement valid in court in case of any problem.

Borrowing sum, interest rate, payback term, and any additional fees, such as those for late payments, should all be in the contract. The government restricts interest rates to 4% per month of the outstanding balance. To charge more than this predetermined sum is prohibited.

5.  No licence to operate

A lender will not be allowed to operate or offer unless recognised by the Registrar of Moneylenders or the Ministry of Law. They implement these regulations to safeguard borrowers from being taken advantage of.

6.  No actual place of business

Scammers run their business entirely via cell phones, making it impossible for customers to track down a fixed address. An actual money lender in Singapore must advertise a physical location and contact information, including a phone number.

7.  Lack of clarity on the costs

Con artists won’t put their prices front and centre on their sites and won’t tell you what they charge unless you specifically ask. Although you can meet a licensed money lender in Singapore that publishes their rates and fees online, they should be clear before you sign any paperwork.

How To Avoid Being A Victim Of Loan Scams

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1.  Reject unregistered calls

If you are not expecting any call from a credit company in Singapore, you should ignore and reject them. Once they determine that you are interested, they will use any means at their disposal to get you to take them up on their offer. Some of them may even sound professional and may know terms about loans to make you feel intimidated.

2.  Maintain the confidentiality of your data

To get their hands on your money, some loan scammers seek sensitive information like your bank account data, driver’s licence or SingPass account information. A licensed money lender in Singapore will call you without asking you for personal details.

3.  Do some research

It won’t hurt you to do some verification and research their name. The Ministry of Law of Singapore maintains an up-to-date list of licenced moneylenders, which you can consult to see if the lender is legitimate.

4.  Avoid sending money

If you are in the position of applying for a debt consolidation loan in Singapore and the lender asked for a deposit to get it approved, then you are being scammed. Once you’ve sent the money, you’ll get cut off. No loan is guaranteed, as it all depends on your requirements and your credit score.

Fees for applications, appraisals, and credit reports are not unheard of, but they are typically part of the total cost of your loan.

What Are The Next Steps To Take If You Suspect A Scam?

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1.  Reach out to your bank

If you have recently made a payment using any digital mode of payment, make sure to contact them immediately. This way, they can find a way to cancel it as soon as possible. If they are using the name of a credit company in Singapore, you may inform them too.

2.  Call the police

You should report this to the police, so call your local precinct to find out what to do. Requesting a copy of your report, and keeping all the text messages, emails and call logs is a good idea in case you need it as evidence. The sooner you report a scam, the sooner you can stop the scammer from victimising others.

Choose a transparent and licensed money lender!

Monetium Credit understands the importance of having access to a trustworthy money lender in Singapore during a financial crisis. Are you in need of a lender with a valid licence? Schedule an appointment with them today!

About David Curry

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