How to Avoid Illegal Moneylenders in Singapore
With the ever rising economy in Singapore, recently there have been many illegal moneylenders taking over the trade. This cause even the legal moneylenders to go through many issues due to the scams done by illegal lenders. Most of the people go to moneylenders for their immediate cash needs. Therefore, getting it done by a trustworthy moneylender is important in many ways. Whilst there is no foolproof way to completely avoid illegal moneylenders, we can give you a few tips on how to recognize and stay away from them.
1. Physical presence of the company
In this largely virtual driven world, we always go for things which can be done online. However, when it comes to money matters, it is strongly recommended that you visit the office. Always request to meet a representative of the money lending company in person before you go ahead with the procedures. There are many money lending scams which have happened through illegal lenders who promise immediate online transfers of the money. Therefore, make sure that your moneylender has a physical presence before you chose them for your financial needs. It ensures the credibility and the stability of the company.
2. Do a thorough research on their past clients and referrals
The internet has made space for many scams to be present. But it has also been a good place to uncover scammers as well. There are many unbiased product and service reviews which you can go through to get an idea about the company. A well put together website and an easy to access customer service method are a few things you should look for when analyzing the online presence of the company. Moreover, it always helps to ask your friends and people in your circles about their own experiences in money lending as well.
Check the documents or references they ask for
It is true that moneylenders usually do not go too deep into getting documents of proof before they approve your loan. But there should be some level of screening before they offer you the money. The less reckless they seem to be when approving your loan, the more security you will have. Beware of the lenders who promise to give large amounts of money with no income related documents from you. An established company will always ask for some kind of identification and proof to safeguard their own interest as well. In addition, it is a must by Ministry of Law that we provide a borrower’s proof of income.
3. Never give your financial details online or over the phone
Last but not least, always be careful to not give out sensitive information. For example, your account details or NRIC. Be it through email or over the phone when you directly contact them. Like it is mention above, make sure you are satisfied with the stability and security offered by the moneylender before you go ahead with the procedure of getting a loan.
Always approach a licensed moneylender when you need a loan. Never take a loan from loansharks as they will create a lot of trouble for you.
ALWAYS REMEMBER THAT IF SOMEONE OFFERS YOU A “LEGAL” LOAN THRU CALL/SMS, THEY ARE ALL LOANSHARKS.