In Singapore, loan sharks are unlicensed moneylenders who offer and grant loans illegally. Their loan terms are usually unfair, primarily marked by overpriced interest rates. Since they don’t abide by the law, they typically use violent and malicious strategies to get you to pay off your loan.
How Loan Sharks Operate
Loan sharks are not licensed by the Ministry of Law’s Registry of Moneylenders. They target vulnerable individuals who are desperate for funds and can’t obtain loans from traditional lending sources. Because of this, most individuals agree to their unjust practices including excessive interest rates of 20% up to 1000% per year.
Since loan sharks are not bound by law, they often resort to violent and unscrupulous activities to force their unsuspecting debtors to pay off their loan by any means necessary. They typically harass debtors by slapping paint on their front doors, sending threatening notes, writing graffiti on walls containing debtors’ personal information, and even damaging or burning debtors’ property.
These malicious people are likewise known for outsourcing their illegal activities to unsuspecting debtors or other third party individuals. These activities include forcing debtors who can’t pay off their debts to harass other debtors, offering cash to for opening bank accounts to operate their illegitimate funds transfers, and offering underage individuals money to harass debtors.
How to Know If You’re Dealing with a Loan Shark
In your search for a reliable money lender, industry professional Sgreliablemoneylender.com notes that it pays to know the things to watch out for. If you are still unsure, ask yourself these questions:
- Have you received text messages or phone calls about loans?
- Have you been offered loans without proper paperwork?
- Were you asked to provide your bank card and its PIN?
- Have you been threatened for not repaying your loan on time?
- Did you get your money from the lender personally?
- Is your loan getting bigger even if you’re paying it off as scheduled?
If you have answered YES to one or more of these questions, unfortunately, you may have dealt or are dealing with a loan shark. If you’ve been a victim by a loan shark or suspect that you may be dealing with one, it is best to report them to the Registry of Moneylenders or take your case to court.
If you are on the lookout for a loan from a money lender, you must do your own research. Look up and only deal with licensed moneylenders and read reviews online. This will ensure that you get the loan you need without falling prey to loan sharks.