Key Takeaways
- Licensed money lenders must follow strict laws when collecting debts.
- Harassment, threats, intimidation, or public shaming are strictly prohibited by law—no lender, licensed or otherwise, is allowed to engage in such acts.
- Repeated or excessive calls, messages, or visits that cause distress or undue pressure may be considered harassment, even if made by a licensed lender.
- Borrowers should document all evidence, including calls, messages, photos, dates, and times.
- Always verify a lender’s licence using the official Registry of Moneylenders.
- Licensed money lender harassment can be reported to the Ministry of Law (MinLaw), and serious threats or property damage should be reported to the police immediately.
Have you ever felt that financial stress was already weighing you down, only to receive constant calls or pressure from a money lender to make things even worse? For many borrowers, this experience can quickly become overwhelming.
In Singapore, licensed money lender harassment occurs when a licensed money lender uses improper or unlawful methods to recover a debt. While licensed money lenders are legally allowed to pursue outstanding repayments, they must do so responsibly and within the boundaries of the law. Those who breach these rules may face fines, suspension, or even licence revocation.
This article explains what licensed money lender harassment looks like, what licensed money lenders are permitted to do during debt recovery, and how to report money lender harassment step by step through official channels in Singapore.
If you are unsure whether a lender is legitimate, this guide provides borrowers with tips on how to identify legal money lenders so you can protect yourself from unlicensed or illegal operators.
What Constitutes Licensed Money Lender Harassment in Singapore?
Not every reminder or follow-up message amounts to harassment. However, licensed money lender harassment occurs when a lender’s actions cause fear, distress, or humiliation to the borrower.
Here are some common examples of licensed money lender harassment:
- Repeated threatening calls or messages: Constant phone calls, SMS, or WhatsApp messages—especially late at night—that contain aggressive, abusive, or threatening language.
- Intimidation or coercion: Showing up in groups, impersonating authorities, or pressuring borrowers through fear rather than lawful and professional communication.
- Public shaming or embarrassment: Licensed money lenders are not allowed to publicly disclose your debt. Posting your personal details online, contacting your employer, or placing notices on your door may constitute harassment.
- Threats of violence or property damage: Any threat to harm you, your family, or your property is illegal. Licensed money lenders are not permitted to vandalise property, stalk borrowers, or use physical force under any circumstances.
Such conduct is strictly prohibited by Singapore law. Borrowers can refer to the Ministry of Law’s official borrower guide for clarity on their rights and protections. When necessary, borrowers must report to the Ministry of Law to protect themselves.
Why Licensed Money Lenders Must Follow Strict Rules
Licensed money lenders in Singapore operate under the supervision of the Ministry of Law (MinLaw). Their licences come with strict conditions that govern how loans are issued and how debts may be collected.
These regulations are in place to protect borrowers by ensuring:
- Fair and respectful treatment
- Clear and transparent loan terms
- Lawful and professional debt recovery practices
Licensed money lenders who fail to comply with these rules may face enforcement action, including fines, suspension, or licence revocation. This is why reputable lenders place strong emphasis on compliance. You can learn more about borrower safeguards under the new money lender rules.
What Are Licensed Money Lenders Allowed to Do When Collecting Debt?
Debt collection itself is not illegal—licensed money lenders may take reasonable steps to recover unpaid loans. Licensed money lenders are, after all, running a business.
They may:
- Contact you via calls, messages, or emails during approved timings
- Issue letters of demand
- Engage licensed debt collection agencies
- Request face-to-face meetings if all other communication methods are exhausted
That said, licensed money lenders are encouraged to use less intrusive methods first. Any in-person meeting must be conducted calmly, professionally, and without intimidation. For clarity on acceptable conduct, licensed money lenders are required to follow the standards outlined in MinLaw’s service handbook.
Steps to Report Licensed Money Lender Harassment
If you are experiencing licensed money lender harassment, taking early action is important. Reporting the issue promptly can help stop licensed money lender harassment and prevent it from escalating.
Step 1: Gather and Document Evidence
Start by keeping clear records of all incidents, including:
- Call logs
- WhatsApp or SMS messages
- Emails and voicemails
- Photos of vandalism, written threats, or notices
Be sure to note the dates, times, and details of each incident. Proper documentation will strengthen your complaint.
Step 2: Verify the Lender’s Licence
Confirm whether the lender is officially licensed by checking the official list of registered money lenders. This list is updated monthly and reflects the most accurate list of approved money lenders.
If the lender does not appear on the official list, they are not licensed and may be operating illegally. Dealing with such illegal lenders—often referred to as loan sharks—can put you at serious financial and legal risk, as they are unregulated and may impose excessive interest rates, hidden fees, or use unlawful and aggressive debt collection methods.
Step 3: Report the Harassment to the Ministry of Law
The Registry of Moneylenders under MinLaw oversees licensed money lenders and investigates complaints about misconduct, unfair practices, or other offences.
To report a money lender, you may submit a complaint through the MinLaw portal or call 1800-2255-529 (standard mobile charges may apply). When making your report, be sure to provide:
- The lender’s name and licence number
- Details of the harassment or misconduct
- Any supporting evidence, such as call logs, messages, or documents
The Registry may contact you for additional information, documents, or to schedule an interview. Complaints are handled confidentially, and enforcement action will be taken against lenders found to be in violation of the law.
Step 4: File a Police Report if Threats Are Involved
If the licensed money lender harassment involves threats, stalking, or damage to property, you should file a police report immediately.
You can submit a report online via the Singapore Police Force (SPF) e-service, or call 999 if you’re in immediate danger.
Step 5: Seek Legal Advice if Necessary
If harassment by a money lender continues even after reporting it to the authorities, you may have additional legal options. Under Singapore law, borrowers can seek remedies such as protection orders under the Protection from Harassment Act.
Consulting a lawyer or legal advisory service can also help you understand your rights and explore possible legal actions.
How to Reduce the Risk of Licensed Money Lender Harassment
Before even taking a loan, there are several steps borrowers can take to reduce the risk of facing licensed money lender harassment.
Borrowers can minimise the risks by:
- Borrowing only from reputable licensed money lenders
- Carefully understanding the loan terms before signing any agreement
- Communicating early with the lender if repayment difficulties arise
- Considering debt consolidation instead of juggling multiple loans
- Learning how to choose a reliable money lender before borrowing
Saying “No” to Licensed Money Lender Harassment
Remember, harassment by a money lender is never acceptable. Singapore law protects borrowers from intimidation, threats, and unfair treatment—even when dealing with a licensed lender. Taking early action can help stop the harassment and safeguard your rights. If you are looking for a responsible and compliant lender, you can consider checking out our authentic borrower reviews, applying for a loan safely with Cash Direct, or reaching out to us for further guidance on loans tailored to your specific needs. We are conveniently located in Jurong East, just a 5-minute walk from Jurong East MRT station.
