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Legal Moneylenders Are Regulated By The Government

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Licensed money lenders play an important role in the economy, especially when people are facing financial difficulties. Unlike pawnbrokers, they offer short-term loan solutions that help you manage your debts and expenses. However, it’s important to do your research before choosing one. You should check whether a licensed money lender is legitimate and follows the law. If they do not, you can file a complaint with the Registry of Moneylenders.

Legal Moneylenders Are Regulated By The Government
In Singapore, moneylenders must be registered with the Registry of Moneylenders. They must also be a business entity and comply with all the rules and regulations set by the Ministry of Law. This includes providing information and documents to borrowers, and ensuring that the loans are secured with collateral. These requirements are meant to protect borrowers from unauthorized moneylenders and loan sharks.

Some licensed moneylenders are known to use aggressive debt collection methods, and they can even break the law by threatening or harassing borrowers. Despite this, they still have a good reputation in the community because many people in need of cash turn to them for help. Illegal moneylenders, on the other hand, are not regulated by the authorities and they often prey on vulnerable members of society. These borrowers may include those who are unable to secure a loan from a bank, those with poor credit history, and those on benefits or unemployment.

The Ministry of Law’s website has a list of registered moneylenders. The list is updated every month, so you can always check if your moneylender is listed. You should also check the license status of the moneylender and whether or not it has been suspended or revoked. In addition, you should ask the moneylender to provide you with written documentation of the loan agreement. It is important to understand the terms and conditions of the contract, including the repayment schedule and interest rate.

A licensed moneylender is not allowed to collect any fees before approving a loan application. Hence, if a moneylender requires you to pay any upfront fees, it is likely that they are not a licensed moneylender. You should also keep all receipts of your repayments to avoid being charged late payment fees or interest.

If you are looking for a trusted and reliable licensed moneylender, look no further than QV Credit. They have been servicing customers since 2000 and have the expertise to meet your needs. They will evaluate your application and get back to you within a few days. In addition, they will provide you with a copy of the loan contract and an account statement. You should read these documents carefully and only sign them after fully understanding them. Also, you should make sure that you make your monthly repayments on time to avoid accumulating late payments and interest charges.

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