Is this a Licensed Moneylender?

ScamAlert Advisor | 14 May 2019

How to spot loan scam - no. 1

Some of us have experienced what it’s like to be in a tight financial spot, and some have considered borrowing from friends or taking a loan out from our banks to solve our financial problem.

Some may even be tempted to respond to “moneylending companies” that advertise their services via suspicious phone calls, messaging platforms or social media. These “companies” offer very attractive interest rates, no contract requirements and no credit checks. All they need is down payment upfront… sounds like something too good to be true? Yes, it is.

Actual scam msg_revised

Actual advertising message

In the cases that we come across, scam victims who responded to advertisements like these were asked to put down a deposit to secure the loan - an amount which will disappear, along with the promised loan money. In other cases, the scammers will request for IC or bank account details from the victims to "review loan eligibility". Victims who fall for this trick often end up with huge debts when these scammers deposit money into the victim's account without the victims’ consent and demand interest rates.

If you require a loan, always remember that licensed moneylenders are NOT allowed to advertise their services via WhatsApp, SMSes, and social media. If you receive such an advertisement, do NOT respond as it’s most likely to be from a scammer or an unlicensed moneylender (loan shark).

Please note that a licensed moneylender should be registered with the Ministry of Law. Check the list out here: List of Licensed Moneylenders

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