Protect Yourself from Scams by Unlicensed Money Lenders in Singapore

Spurred by digital technology, unlicensed money lenders or loan scammers have become very smart. Loan sharks bait people and look for the ones in urgent need of money. They start the scam with a lucrative text message or email offering huge amount of loan.

In order to protect yourself from such scams, it is important that you stay alert and look for a licensed money lender that can really help you. This article aims to arm you with the knowledge of spotting unlicensed money lenders and avoiding their scams.

How to Avoid Scams from Loan Sharks

1. Beware of lenders that don’t check credit scores
   

Your credit score is an essential factor that financial institutions check during the loan application process. An impressive credit score will qualify you for just about any authorized loans out there, yet some online money lenders would guarantee loans without checking your credit score. Don’t fall for money lenders with taglines like, “Bad credit? No problem.” as these are most likely scams.

2. Ignore unsolicited calls, emails, texts, and visits from strangers

If someone hands you a brochure or a poster of a loan advertisement, dispose of them in trash bins to keep others from seeing the advertisements and being tempted by such borrowings. Likewise, if you receive any unsolicited calls, emails, and texts from anonymous contacts offering loans, ignore these, as they are most likely unlicensed money lenders.

3. Check the official list of licensed money lenders in Singapore

If you come across a money lender claiming to be authentic and licensed, take note of the company’s name, business address, and license number. Also, check with the Ministry of Law if the company is included in Singapore’s latest list of licensed money lenders.

4. Do not proceed if they ask you to pay “upfront” fees

You might encounter a money lender asking you to pay upfront or advance fees to secure your loan. In other cases, these money lenders will require you to set up automatic payments to cover their fees for several months before they approve your loan. These companies are already considered suspicious and must not be entertained. Such schemes are risky and operate on a large scale. This is a common method done in other countries as well.

5. Never give out personal and sensitive information to money lenders

Refrain from easily giving out any personal and sensitive information like details in your National Registration Identity Card (NRIC), passport, and work permit; bank accounts and Singpass; residential address; and information about friends and relatives. Money lenders can take advantage of this information and devise schemes to use your identity for illegal purposes.

Be Informed and Vigilant

If you have doubts about a certain money lender you encountered, don’t hesitate to report the company to any of the following authorities:

• Ministry of Law: 1800-2255-529 or their website
• Singapore Police Force (SPF): 1800-255-0000

You can also check Scam Alert to learn more about safeguarding your personal and financial information against scammers.

Only consult and borrow loans from licensed money lenders in Singapore, like Capital Funds Investments. We have the means and resources you need to ease your debt and various loan plans that cater to your goals and budget to start building a better life ahead. Consult with us today and let us know how we can lend a helping hand.

by the lenders.