Loans are considered the go-to option to get some extra money when you need it the most.
But not everyone is comfortable with the idea of getting loans from financial institutions.
This is primarily because of the issues caused by certain unscrupulous lenders, commonly referred to as loan sharks.
Are you currently dealing with a loan shark or wish you knew how to avoid one? The first step is knowing how to identify a loan shark.
Here are some things you should know about how to run away from loan shark in Singapore.
Loan sharks are illegal money lenders that often charge extremely high interest rates on the loans they offer. They also use aggressive and threatening tactics to collect payments from borrowers.
This can often lead to harassment, intimidation, and even violence.
Loan sharks mostly operate in poor or underdeveloped areas where there are no legal protections in place for those who take out loans. It can be very difficult to know if you are dealing with loan sharks since they often operate in a clandestine manner.
However, there are some tell-tale signs that can help you avoid them.
If you are dealing with someone who meets all of the above criteria, chances are you’re dealing with a loan shark.
Loan sharks provide instant cash with terms that seem so tempting at that point in time. However, if you are unable to repay the loan as per the terms, loan sharks will resort to illegal and violent methods to get their money back.
All of these tactics are illegal and no one should have to go through them as it can be very stressful.
Have you been contacted by loan sharks or gotten a loan from one? If you are not sure how to run away from loan shark in Singapore, here are some ways you can deal with loan shark harassment.
You can check with the Ministry of Law to see if the lender is licensed. If the lender is not licensed, then it is likely that it is a loan shark.
It is important to know your rights when dealing with loan sharks and how to fight loan shark harassment.
Under the Moneylenders Act, loan sharks are not allowed to harass or intimidate borrowers.
They are also not allowed to use or threaten violence against borrowers or their family members.
If you are being harassed by a loan shark, it is important to keep calm and collected. Do not engage with the loan shark in any way and do not sign any documents that they give you.
Keep a record of any harassment that you receive from a loan shark. This can be helpful if you decide to make a police report or take legal action against the loan shark.
Be sure to include details such as the date, time, and location of the incident, as well as any witnesses who may have seen or heard what happened.
One other way to evade a loan shark is to block its number. This way, the loan shark will not be able to contact you and you will not have to worry about it anymore.
There are many ways to block a phone number these days, so make sure you do your research and find the best method for your needs.
If you are being harassed by loan sharks, the most important thing you should do is file a police report. This will help stop the harassment as the loan sharks will be aware that the authorities are now involved.
Call the loan shark helpline or the police hotline for crime-related info at 1800 255 0000.
The police will be able to take action against the loan sharks and also put a stop to their illegal activities.
If you are being harassed by a loan shark, you should seek legal advice from a qualified lawyer.
A lawyer will be able to advise you on your legal rights and options, and can help you take action against the loan shark if necessary.
It can be tempting to give in to the loan shark’s demands and pay back the loan, especially if the loan shark is threatening you or your family.
However, this is not a good idea as it will only encourage the loan shark to keep harassing you. It will also make it difficult to take legal action.
Loan sharks in Singapore face strict punishments if they are caught and convicted.
Under the Moneylenders Act, loan sharks can be fined up to $300,000 and/or jailed for up to four years and caned up to six strokes.
Those who assist loan sharks in their illegal activities can also be fined, caned, or jailed based on the severity of their offence.
Violence of any means by loan sharks or even licensed money lender harassment has severe punishments including fines and imprisonment.
So if you want to run away from loan shark in Singapore or are wondering how to solve loan shark problems in Singapore, then it is better to call the loan shark helpline and get the loan shark punished by law.
Handling loan sharks in Singapore can be difficult – but not impossible.
If you are being harassed by loan sharks or need help dealing with them, there are many organisations and helplines that can assist you.
Some of these organisations include:
The best way to deal with a loan shark is to avoid dealing with one in the first place.
Katong Credit is one of the most trusted licensed money lenders in Singapore, offering some of the most affordable interest rates and fees.
If you are being harassed by loan sharks, the most important thing you should do is file a police report.
This will stop the harassment as the loan sharks will be aware that the authorities are now involved. The police will be able to take action against the loan sharks and also put a stop to their illegal activities.
If you need money, it is better to approach a bank or licensed money lender instead of loan sharks.
This is because they are regulated by law and will not engage in any illegal activities.
Loan sharks are not registered under the Ministry of Law’s Registry of Moneylenders, which means they are operating illegally.
So in a way, it is also illegal to deal with loan sharks. Whether it is an offence or not, you could save yourself a lot of trouble by not dealing with a loan shark.