Singapore’s high cost of living has left some individuals, including Singaporeans and foreign workers, vulnerable to the clutches of loan sharks. Despite the implementation of the Moneylender Act in 2008, loan shark activities persist, with numerous arrests and cases of loan shark-affiliated suspects opening bank accounts. In this article, we shed light on the dangers of working with loan sharks and provide guidance on how to avoid falling victim to their deceptive tactics. If you find yourself in need of financial assistance, it’s crucial to seek the support of reputable lenders like Oasis Credit, who prioritize your well-being and offer legal and responsible lending solutions.
Why You Should Avoid Loan Sharks:
Loan sharks may seem appealing with their instant loan offers, but the risks associated with dealing with them far outweigh any short-term benefits. Here are compelling reasons to steer clear of loan sharks:
Completely Out-of-Contract Loans:
Unlike banks and licensed moneylenders that prioritize risk assessment and establish legally binding contracts, loan sharks operate outside the boundaries of the law. They lure borrowers with quick loan approvals but fail to provide legitimate documentation. By signing a contract that is not in circulation, borrowers become vulnerable to the loan shark’s manipulations and find it difficult to seek legal protection or recourse.
Zero Cash Recovery Possibility:
While Singapore’s police force can help prevent loan shark harassment and ensure your safety, they are unable to recover the cash payments made to loan sharks. Any amount you have paid to loan sharks is lost forever, leaving you in a dire financial situation.
Ties to Criminal Organizations:
Loan sharks are often linked to local and international criminal organizations. This association allows them to provide significant loan amounts to victims, ensnaring them in unpayable loans with ever-changing terms and conditions. Loan sharks resort to threats, abusive behavior, and violence to coerce borrowers into making payments and avoid seeking help from law enforcement.
Red Flags to Identify Loan Sharks:
To protect yourself from loan sharks, it’s crucial to be aware of the warning signs. Here are seven red flags to help you avoid falling prey to their deceptive practices:
Not Registered to the Registry of Moneylenders:
Loan sharks operate illegally and are not registered with Singapore’s Ministry of Law’s Registry of Moneylenders. Before considering a loan offer, verify the lender’s operating license number against the list of licensed moneylenders available for download from The Registry’s website. Working with unlicensed moneylenders provides no legal recourse if issues arise.
Guerilla Advertising and Unsolicited Outreach:
Unsolicited SMS or calls offering high loan amounts with unbelievable interest rates are clear indicators of loan shark activities. Such outreach methods are illegal, and licensed moneylenders are only permitted to advertise through static websites and within their physical branch premises.
Offering an Excessive Loan Amount:
Loan sharks entice borrowers by providing loan amounts beyond their actual needs. Banks and licensed moneylenders assess loan applications based on risk profiles and borrowers’ income and employment stability, while loan sharks disregard such considerations and trap borrowers in high-risk loans.
Skyrocketing and Abnormal Interest Rates:
Unlike regulated lenders, loan sharks set interest rates as high as they desire, with no regard for market valuation or rules and regulations. Borrowers who question the derivation of these rates receive no satisfactory response, as loan sharks rely on coercion and abuse to enforce their demands.
Random Loan Processing Fees:
Loan sharks charge processing fees that far exceed the loan amount, significantly increasing the borrower’s overall debt burden. Banks and licensed moneylenders, on the other hand, adhere to processing fee limits that are a fraction of the loan amount.
Blank Contract Signing:
Legitimate lenders, including banks and licensed moneylenders, ensure that borrowers understand the terms and conditions of their loans. They read out the details, provide explanations, and have borrowers sign waivers to acknowledge comprehension. Loan sharks, however, may present blank contracts or manipulate contract terms to their advantage, leaving borrowers vulnerable and unprotected.
Crudely Abusive Behavior:
Loan sharks resort to harassment, threats, and violence to intimidate borrowers into submission. They disregard legal processes and can change contract terms and conditions arbitrarily, preventing borrowers from fully repaying their debts. Seek immediate protection from the authorities if you encounter such abusive behavior.
How to Fight Against Loan Shark Harassment:
If you find yourself entangled with loan sharks, take these steps to protect yourself and seek assistance:
Do Not Respond to Unsolicited Messages:
Avoid engaging with loan sharks by refraining from responding to unsolicited SMS, chat messages, or calls offering loans. These actions are illegal and only serve to empower loan sharks.
Report Loan Sharks to the Authorities:
Contact the X-Ah Long hotline at 1800-924-5664 or file a complaint with the Registry of Moneylenders at 1800-2255-529 to report loan shark activities. Singapore’s authorities have dedicated departments to help individuals combat loan shark harassment and can provide you with the necessary protection.
Learn How to Deal With Threats:
Loan sharks may resort to threats and violence, but Singapore’s police force can assist in ensuring your safety. File cases against loan shark assistants involved in criminal activities, and rely on the law to deliver appropriate punishments.
Stop Making Payments:
Once you have identified a lender as a loan shark, cease all payments immediately. Report the situation to the authorities and refrain from giving them any further funds.
Seek Help from Social Service Agencies:
If you require immediate assistance, organizations such as Credit Counselling Singapore, MSF ComCare, and One Hope Centre can provide support and represent you legally. Reach out to them to receive the help you need.
Protecting yourself from loan sharks is crucial to your financial well-being and personal safety. By understanding the red flags associated with loan shark activities and following the recommended steps to combat harassment, you can safeguard yourself from falling victim to their deceitful tactics. Remember, reliable lenders like Oasis Credit are committed to providing legal and responsible lending solutions, prioritizing your best interests. If you find yourself in need of financial assistance, opt for reputable lenders that comply with regulations and ensure your protection.