If you have been thinking of borrowing money from a legal moneylender, it is important that you do your due diligence first. This means that you should consider whether it is feasible to fulfil the contractual terms of the loan, taking into account your income and financial obligations. Furthermore, you should try to seek out other alternatives such as financial assistance schemes offered by the government before deciding to take up a loan.
Besides exercising diligence, a licensed moneylender should also be transparent in their dealings with you. This includes clearly informing you of the loan’s terms and conditions, including the maximum interest rate that they can charge for late payments. You should also keep a copy of all your statements of accounts and payment receipts as they will come in handy should you ever need to dispute any charges with the moneylender in the future.
Another thing that a legal moneylender should do is not engage in aggressive debt collection tactics. For example, they should not loiter around your workplace or home, call you at non-business hours or send you hate mail. They also should not inform your friends and family members of your debt, which could be seen as harassment.
If you do encounter any of these illegal practices, it is best to report them to the Registry of Moneylenders with full details such as the moneylender’s business name, licence and contact numbers. The Registry takes complaints of harassment very seriously and handles them expeditiously.