There are many horrible stories about harassment issues involving people who borrowed money from unlicensed moneylenders. In Singapore, there has been a long debate about making such occurrences a crime punishable by law.This is to protect the safety of the people as well as the whole community.
If you are in need of extra cash, and you are looking into getting a loan, it is best recommended to get it from a licensed money lender.
Such groups are governed by money lending laws that are strictly implemented and monitored by the government authorities. Failure to abide by the law would mean a penalty or the cancellation of the lending company’s permit to operate.
Despite the availability of numerous licensed moneylenders, there are still people who find it a lot easier to borrow cash from unauthorized lenders. Little do they know about the possible consequences.
What are the disadvantages of getting a loan from an unlicensed moneylender?
HARASSMENT
Unlicensed moneylenders can expose you to different forms of harassment especially if you are unable to meet whatever you had agreed upon.Some would start calling your landlines or mobile phones countless times or they could even go to your homes to harass you.Harassment is not very unusual as it happens all the time.It is very mind-disturbing and may even cause extreme anxiety and depression on the part of the victim.
EXTREMELY HIGH-INTEREST RATE
Moneylenders who are not authorized tend to take advantage of the borrower’s weakness. They impose extremely high-interest rates giving the borrower no choice but to accept it because of the urgent need for the cash.It’s like, ‘take it or leave it.’ The people in need would, of course, grab the offer no matter what it entails just so they would be able to cover up their short-term needs.
POSSIBLE IDENTITY THEFT
If you are dealing with an unlicensed moneylender, they will have access to your personal details, and so your personal information can be at stake too. You are not protected at all.Someone can steal your personal information or identity and use them in a wrong manner.
SMS SPAMS
Illegitimate moneylenders send various text messages to people or prospective borrowers
to lure or tempt them to get a loan. These spam messages can be very annoying and disturbing.
All of the things mentioned above can be avoided if you transact with a licensed moneylender.It will definitely give you a peace of mind.