Many Singaporeans find themselves seeking to borrow some money from at certain times in their lives. The cash may be for financing a car or home, medical emergency or even for furthering your education. It is at this point that taking out a personal loan comes in handy.
However, this is not always the case for some people. Due to poor credit score, some individuals fall on Singapore scams or what they call loan scams. On some occasions, some individuals are desperate to find some urgent money and are not able to do this through legal money lending institutions that usually have very stringent regulations. They instead end up borrowing from other sources.
Even under such circumstances before you choose to take out a loan from alternative sources, there are a few loan circumstances like scam Singapore that you need to be wary of. Knowing this will help you avoid getting yourself into much bigger debts than before.
A Lot Of Unsolicited Contact
On most occasions, these types of lenders who practice scamming in Singapore will often send numerous emails and even make calls to you every once in a while. On the other hand, the legal moneylenders never turn to such attempts as a way for them to source for possible customers.
This is because the legal moneylenders won’t bother you without valid reasons, legal money lenders also have other platforms to advertise their services like social media channels. It is therefore advisable that you disregard these spams or even report these types of lenders to the appropriate authorities.
Predatory Lenders – Loan Sharks
It is suggested that you be aware of this group of moneylenders, normally identified as “Ah Long” to Singaporeans. In many instances, loan sharks or scammers use deceptive, unfair, or fraudulent practices to lure borrowers who are desperately in need of quick cash. It so happens that loan sharks or scammers often target individuals who are not qualified to access loans from the legal sources which include banks. These individuals are not able to access loans because of their bad credit score.
As a way of finding a way to get in touch with potential borrowers, loan sharks usually use advertisements. They often will advertise insistently using ads on online platforms and even on public transport. The loan sharks normally try being friendly to you during your first meeting. However, as soon as you agree to borrow from these scammers, they drastically change their behaviour.
From then on, they start harassing the borrower demanding the repayment. And because loan sharks don’t adhere to the law, they many will end up charging you very high-interest rates that might leave you in even bigger debts in the end. The best suggestion at this point is that you do not deal with them and if you have encountered such scammers, its best to file a police report to the police.
Asking for Upfront Fees
Normally upfront fee scams will require that you give an upfront application payment before you can be issued a loan. These types of lenders will rationalize the fees by insinuating that it’s a compulsory processing fee charged on all their borrowers. They may even categorize it as security required because of your bad credit.
After that, they will go ahead and ask you to provide them with your account details or even ask that you transfer funds online to them and in return, they promise to give you the loan. As soon as you make the transfer, this lender will run off with your cash.
Another related form of this type of scam is e-commerce scams and internet love scams, these e-commerce scams and internet love scams are also keen in asking any upfront payment. The scammers will even ask you for bank account information of personal information to further extort money from you, leading to a more serious financial problem.
Therefore, don’t be surprised if these scammers suddenly disappear in thin air and never contact you again. Do keep this in mind – legal moneylenders do not ask borrowers for payments before giving you a loan. It is best that once you encounter this type of scams then immediately report to the police to ask for legal assistance.
Online Guarantees On Personal Loans
These types of loans are also called as bad credit loans. These loans are normally intended as short-term types of loans. And they are very convenient to access, which makes them rather attractive to most people. Beware of any guarantees that give you a loan before evaluating your credit score, income, or other personal details as they possibly could be a scam.
Also, be cautious since some online companies are just trying to get access to your private information like a bank account, debit cards and credit card for illegal purposes. To help you identify those companies that are legitimate, you probably need to keep in mind some of the basic signs:
- The lenders need to have a customer service line
- They should also have physical address for their business
- There needs to be a physical store in addition to their online platform
The easiest way to make certain that you are working with a legal lending company is that you do your research. This way you will be able to find out additional information regarding the lending company from dependable sources, it will also verify that the lending entity does not practice scams.
The intimidation and harassment might come before you get the loan, and once after you have borrowed from these types of moneylenders. Licensed money lender Singapore will never pressure you into taking their offer since they understand that it’s eventually a decision that only you can make.
Even after you’ve received the loan, these types of lenders may even resort to intimidating you by mentioning your relative’s names, whom they could harm should you fail to repay the loan or usage of your personal information to connect with your next of kin. They might also threaten you with taking legal action against you for unpaid loans. These kinds of moneylenders are generally bold and often take advantage of borrowers by creating fear in them using their scare strategies, which makes most borrowers vulnerable thus easy to exploit.
Phony “Legal” Moneylenders
These alleged “licensed” moneylenders pretend to be legal parties through the use of legitimate registration numbers given by the Singaporean Monetary Authority (MAS). They also post advertisements by using the legal business names of other lending companies. They usually will appear to you using random emails as well as social media posts.
For these reasons, before you opt to borrow from such moneylenders, make sure you validate the company details to confirm that they are truly who they say they are (you could use hotline and website). In general, the actual companies are hardly aware of these imposters who go around scamming potential borrowers.
The best way to avoid getting scammed is to find the best money lender, check if it is legitimate and build a rapport. When you stick to the same legitimate company you’ll never worry about your future lending needs.
Moreover, finding a legitimate money lender can be a crucial job. So ways to look for a reliable one is through word of mouth, legit online reviews and reference checks. Always remember that a legitimate money lender does not harass the borrower instead it even share references for fact-checking.
But, in case you’ve been a victim of the hard money scammers then its best to contact your local law enforcement or police department and report the incident as soon as it occurred. Loan Advisor team hope that you follow these tips to avoid potential scammers if you have any inquiries regarding loans then feel free to drop us a message. We are always at your service 24/7!