Tougher rules ahead for moneylenders in Singapore

New measures will take effect from November 1 to protect the interests of borrowers.

The new regulations come just 2 years after advertising rules were relaxed for licensed moneylenders. However, the Ministry of Law observed high levels of advertising and became concerned that the advertisements would encourage reckless borrowing.

Advertising & Marketing Activities
Moneylenders can only advertise on their website, in print/online directories like Yellow Pages, or advertisements within their approved place of business. They must also comply with rules on what the advertisement can or cannot contain.

Print advertisements and pamphlets will no longer be allowed. Non-compliance may result in the loss of licence, a fine of up to S$20,000 or imprisonment of up to 6 months.

Moneylender's Licence
Each moneylending outlet must be managed by a different person who has at least 4 "O" Level passes and has passed a written test. His/her appointment as manager must be approved by the Registrar of Moneylenders.
Moneylenders must computerise their operations and submit electronic reports to the Registry every quarter for audits. They must subscribe to land line as their business contact number instead of using mobile phones.
There are also changes to the fees that moneylenders can and cannot collect.

For more information, click here.