Borrowing from a licensed money lender Singapore can be a convenient and legal way to manage urgent financial needs. Whether you need quick cash for medical bills, tuition fees, or other personal reasons, taking a personal loan in Singapore from a licensed lender can provide short-term relief. However, borrowers sometimes face problems when lenders fail to follow the rules set by the Ministry of Law.
If you ever feel mistreated, overcharged, or harassed by a lender, you have the right to file a complaint. This guide explains how to do that step by step and helps you understand your rights as a borrower in Singapore.
Understanding Your Rights Under the Moneylenders Act
Singapore’s Moneylenders Act and Moneylenders Rules are designed to regulate how moneylenders operate and to protect borrowers from unfair practices. The Ministry of Law oversees the Registry of Moneylenders, which is responsible for issuing licences, monitoring compliance, and investigating complaints.
As a borrower, you have the right to:
- Borrow from a licensed lender only. All legal moneylenders must hold a valid licence issued by the Registry of Moneylenders.
- Be treated fairly and respectfully. A lender must not use abusive language, threats, or physical force when collecting debts.
- Be charged only legal fees and interest rates. The law sets strict limits on interest rates, late fees, and administrative charges.
- Receive a clear and complete loan contract. The contract must specify the loan amount, repayment terms, and total cost of borrowing.
- Get a receipt for every payment. Each instalment you make should be documented to ensure transparency.
If any of these rights are violated, you have valid grounds to raise a complaint.
What Counts as Misconduct by a Licensed Money Lender Singapore
Even though licensed money lenders are regulated, some may still behave improperly or engage in illegal conduct. It is important to recognise what counts as misconduct. Common violations include:
- Harassment or intimidation
A licensed lender must never threaten, insult, or embarrass you during debt collection. Harassment includes repeated late-night calls, verbal abuse, or contacting your employer without consent. - Overcharging interest or fees
The law caps the interest rate at 4 per cent per month, regardless of income or loan type. If you are charged more than this rate or face hidden fees, the lender is breaking the rules. - Unauthorised deductions or unfair terms
The lender cannot deduct upfront fees from the principal loan amount unless stated clearly in the contract. Any clause that contradicts the Moneylenders Rules is invalid. - Failure to provide proper documentation
Every borrower must receive a loan agreement and repayment schedule before any money is disbursed. If you are asked to sign blank forms or not given copies, this is misconduct. - Unlicensed lending disguised as legal
Some illegal moneylenders claim to be licensed but are not listed in the Registry of Moneylenders. Always verify a lender’s licence number on the Ministry of Law’s official website before borrowing.
Recognising these warning signs can help you take action early and avoid further harm.
Step-by-Step Guide: How to File a Complaint Against a Licensed Money Lender
If you believe a licensed money lender Singapore has violated your rights, you can file a formal complaint. The process is straightforward and confidential. Follow these steps:
Step 1: Gather All Evidence
Before making a complaint, collect all relevant documents and records. These may include:
- Loan agreements and contracts
- Receipts for payments
- Screenshots or recordings of messages or calls (if harassment occurred)
- Copies of emails or letters from the lender
- Notes detailing when and how the misconduct occurred
Keep everything organised. The more evidence you have, the stronger your case will be.
Step 2: Verify the Lender’s Licence
Check whether the lender is indeed a licensed money lender Singapore. You can do this by visiting the Registry of Moneylenders website under the Ministry of Law. The site lists all approved lenders and their licence numbers.
If the lender’s name does not appear on the list, it may be an unlicensed or illegal operator. In that case, report it to the Police immediately.
Step 3: Contact the Registry of Moneylenders
You can file your complaint directly with the Registry of Moneylenders. They handle all matters concerning misconduct and non-compliance among licensed lenders.
You may contact them through the following channels:
- Email: minlaw_romp@mlaw.gov.sg
- Hotline: 1800 2255 529
- Address: Ministry of Law, 45 Maxwell Road, The URA Centre East Wing, Singapore
Provide a detailed description of your issue, attach supporting evidence, and include your contact information. The Registry will keep your details private.
Step 4: Submit an Online Complaint Form
The Ministry of Law also provides an online feedback form where you can report issues against moneylenders. It can be accessed via their website under the “Registry of Moneylenders” section.
When submitting your complaint, include:
- The name of the lender
- Licence number (if available)
- The nature of the complaint
- Dates and details of incidents
- Any attachments or documents that support your claim
Once submitted, you will receive an acknowledgement confirming receipt of your complaint.
Step 5: Cooperate with Investigators
After reviewing your complaint, the Registry may contact you for more information or clarification. Be prepared to provide additional evidence or statements if necessary.
The investigation process may take some time, depending on the complexity of your case. However, the Registry will update you on progress where possible.
What Happens After a Complaint is Filed
Once the Registry receives your complaint, it will assess whether the issue falls under its authority. If it does, an investigation will begin. Here is what you can expect:
- Initial Review
The Registry examines the evidence and determines whether the lender may have breached the Moneylenders Act. - Follow-Up Communication
You may be asked for further details, such as the timeline of events or additional documents. - Investigation of the Lender
The Registry may contact the lender to obtain their version of events. Site visits or audits may also be conducted. - Outcome or Enforcement Action
If the lender is found guilty of misconduct, possible actions include suspension or revocation of their licence, monetary penalties, or prosecution.
Borrowers are not required to attend court unless the case escalates to criminal proceedings or a civil dispute. You will be informed of the outcome once the investigation concludes.
Seeking Additional Help
If you continue to face issues after making a complaint, you can approach other organisations for further support.
- Credit Counselling Singapore (CCS)
CCS offers free financial counselling and advice for those struggling with debt management. They can help you negotiate repayment plans with lenders. - Social Service Agencies
Non-profit organisations such as Arise2Care, Blessed Grace Social Services, and Adullam Life Counselling provide emotional and financial support to borrowers under stress. - Legal Aid Bureau
If you need legal advice or representation, you may contact the Legal Aid Bureau for affordable assistance based on your income level. - Singapore Police Force
In cases of severe harassment, threats, or physical harm, report the matter directly to the police. Harassment is a criminal offence under the Protection from Harassment Act.
By reaching out early, you can prevent further damage and ensure your rights are protected.
How to Protect Yourself When Borrowing
While Singapore’s regulations ensure strong borrower protection, prevention is always better than cure. Follow these practical tips to protect yourself when taking a personal loan in Singapore:
- Borrow only from licensed lenders
Always confirm a lender’s licence on the official Registry of Moneylenders website before signing any documents. - Read the contract carefully
Understand all terms before agreeing to a loan. Look out for unclear clauses or unusually high fees. - Keep records of all communication
Save text messages, emails, and payment receipts in case disputes arise later. - Avoid giving personal documents to strangers
Only share identification details or income documents directly with licensed lenders through secure channels. - Borrow responsibly
Take only what you can afford to repay. Multiple loans may lead to debt accumulation and stress. - Stay informed about your rights
The Ministry of Law frequently updates rules and guidelines. Keeping yourself informed ensures you can spot red flags early.
Common Questions About Filing Complaints
1. Will the lender know I filed a complaint?
The Registry of Moneylenders keeps all complaints confidential. Your personal details will not be shared without your consent.
2. Can I still repay my loan while the investigation is ongoing?
Yes. You must continue repaying the loan as agreed unless advised otherwise. Failing to do so may affect your credit standing.
3. What if the lender retaliates after I complain?
Retaliation is strictly prohibited. If you experience further harassment, immediately inform the Registry or the police.
4. Can I recover money lost due to illegal charges?
If the Registry confirms overcharging, you may be entitled to refunds or adjustments. You can also pursue a civil claim through the Small Claims Tribunals.
Conclusion
Filing a complaint against a licensed money lender Singapore may seem intimidating, but the system is designed to protect borrowers. The Ministry of Law takes all reports seriously and enforces strict penalties for misconduct.
When you take a personal loan in Singapore, you are entitled to fair treatment, transparent terms, and respectful communication. If a lender breaches these standards, do not hesitate to act. Gather your evidence, contact the Registry of Moneylenders, and follow the proper channels.
By knowing your rights and standing firm, you help maintain Singapore’s trusted and transparent lending environment — one that safeguards both financial stability and borrower dignity.
