The Registry of Moneylenders in Singapore is part of the Ministry of Law that helps to govern the stability of the moneylending sector by preventing licensed money lenders from committing unlawful acts, excessive risk-taking and ensuring loans are offered based on reasonable terms. Its primary function is to cultivate a professional, legal moneylending industry in Singapore.
What is the Registry of Moneylenders in Singapore
As a regulatory body, the Registry of Moneylenders in Singapore is tasked to uphold a trusted legal framework within the sector by regulating the lending practices of legal money lenders in Singapore. This includes setting guidelines and restrictions on interest rates, fees and loan terms to protect borrowers from exploitative and predatory lending tactics.
What are the Registry of Moneylenders’ main responsibilities?
One of the key responsibilities of the Registrar extends to managing money lending licences in accordance with the Moneylenders Act 2008. This means the Registry of Moneylenders can:
- Issue or refuse to issue moneylending licences — Legal lenders must undergo the Money Lender’s Test conducted by the Registrar to prove their knowledge of the Moneylenders Act before they will be granted a licence.
- Renew the licence of legal lenders — The Registrar has the authority to renew or not renew a money lender’s licence. As a rule of thumb, legal lenders must submit their application for licence renewal one month before their licence expires.
- Revoke money lenders’ licences — The Registrar reserves the right to revoke a money lender’s licence should any complaint against its services prove to be against the law.
- Approve places of business — Licensed lenders’ business address must be approved by the Registrar before they are eligible to operate. According to the Moneylenders Act, an approved business premise must be managed by a Test-Qualified Manager who has passed the Money Lender’s test and is able to enforce all relevant moneylending laws.
What else does the Registry of Moneylenders do to protect borrowers in Singapore
From borrowers’ point of view, the Registry of Moneylenders serves as a protective entity that shields them from predatory lending practices that are unfair or may make them incur greater debts than necessary. Several measures that are implemented by the Registrar to protect borrowers include:
- Transparent loan terms — It is mandatory for licensed lenders to explain the terms and conditions of the loan to borrowers before finalising the loan contract. Errant lenders can be fined or imprisoned if they are caught in fraudulent acts.
- Restrictions on chargeable interest rates and late interests — Licensed lenders are only permitted to implement loan terms and conditions that are within the Registrar’s guidelines. For example, licensed lenders can charge no more than 4% interest per month on a loan and both chargeable fees and late interest must be kept within legal limits.
- Regulated loan sum — The Registry of Moneylenders also enforces a cap on total loan sum that borrowers can take for unsecured loans at any time across all money lenders in Singapore. This prevents borrowers from taking on more debt than they can afford to repay and reduces the risk of borrowers becoming trapped in cycles of debt.
- Anti-harassment — Borrowers are protected by the laws of Singapore against any form of licensed money lender harassment during debt collection. As such, licensed lenders are not allowed to use aggressive, abusive or threatening methods to recover payments from borrowers.
How can the Registry of Moneylenders help borrowers?
The Registry of Moneylenders can help borrowers by investigating complaints against licensed lenders and taking errant lenders that violate regulations or engage in unethical practices to task. Suitable penalties, such as issuing warnings, fines, and revoking of licences, will be meted out accordingly.
Other than that, the Registry of Moneylenders is a great information resource on all things related to borrowing from licensed lenders.
Case in point, it provides borrowers with an updated list of licensed lenders in Singapore and their respective landline numbers, websites, registered business addresses, etc to aid borrowers in their check on whether or not a lender is indeed licensed and legitimate. You’ll also come across blacklisted money lenders at the bottom of the list, if any.
That’s not all. The Registry of Moneylenders also furnishes borrowers with a whole host of useful FAQs pertaining to borrowing from licensed lenders.
While the Registry of Moneylenders can’t help you negotiate with your money lender, you may easily find a list of social service agencies on the Registry of Moneylenders’ website that could provide you with such assistance.
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