Unlicensed moneylenders are cropping up in more and more locations as the demand for money grows. Money lending agencies operating without a license should be avoided at all costs because they will charge exorbitant rates of interest and often have hidden fees in their contracts. That’s why you should ensure that you’re dealing with a licensed money lender Singapore like QV Credit.
Here are some tips for identifying an unlicensed moneylender:
Check if They are Licensed to Operate
A moneylender will have a license to operate. The moneylender should be able to produce the money lending license number and provide contact information for the governing authority that issued their money lending permit when asked by a potential borrower. The moneylender must also carry an up-to-date list of all charges, fees and interest rates at all times while performing money loan transactions.
Look for Their Signs and Posters
A licensed money lender is required to display large signs or posters on their premises with details about their business such as the name of the company, address, telephone numbers (landline/mobile), email addresses and website; if they do not show this sign, then it’s possible they’re running an unlicensed operation. A moneylender will also be required to display a money lending license prominently on their premises.
Check if They are Registered
A moneylender that is licensed and registered with the National Credit Bureau is required to display this information prominently on their premises as well as provide it upon request. A moneylender operating without registration should be avoided because they could have outstanding loans or overdue payments in other parts of the country, which may not be so easy to find out about for someone who doesn’t know how these things work.
Look at Their Website
As an additional sign, they’re legitimate. Moneylenders must also post all charges, fees and interest rates at all times while performing money loan transactions online through their website. Their website should have links to the money lending license number, contact information for the governing authority that issued their money lending permit and history of all charges, fees and interest rates.
Check if the Agency has a Physical Office.
A moneylender will also need to have a physical office. They can be found in malls, business districts and other high traffic areas, which are accessible 24 hours every day of the week.
Check if They’re Office is Tidy
A money lending agency that goes by the books is usually clean with no clutter on their desk or floors, while an unlicensed moneylender may not keep up with anything. A money loaner has more incentive to stay tidy when working inside licensed premises because it’s possible for customers to do spot checks at any time without notice and check out how legitimate the money lender really is as well as what kind of service they offer so keeping things neat helps them make use of this opportunity.
If you find evidence suggesting someone isn’t taking care of their business, then it’s possible they are not licensed moneylenders and should be avoided.
Read Feedbacks/Reviews from other Clients
If you’re still not sure whether money lenders are licensed or unlicensed, then read other clients’ feedback and reviews. These feedbacks and reviews should be posted on their website as well as other sites where money lending agencies operate.
Always Ask Questions
If you want a moneylender who is reliable and legitimate, always ask questions before signing anything yourself. Ask if they have an office with large signboards displaying their name, address, telephone numbers, email addresses and website. Also, ask if they can produce a money lending license number when requested by someone looking for loans from them.
If all of these conditions apply but cannot offer you references about themselves, then it’s safe to say they are not money lenders and should be avoided.
Ensure there are No Hidden Costs
A moneylender must list all charges, fees, and interest rates when money loans are being processed online through their website while in a physical office. It would be wise not to sign anything without understanding what you’re getting into because some money lenders may charge hidden costs which they could include in your contract. But, don’t mention upfront or disclose any information about them when first meeting with you as well as something like insurance that isn’t always clear on contracts yet is still mandatory for money loaners performing business transactions legally.
If it’s Too Good to be True, Cancel your Appointment.
A moneylender who wants your money and is legitimate will not pressure you to sign anything during the first meeting. They’ll take their time to explain all charges, fees and interest rates without pressuring you to sign on the spot, so if it’s too good of a deal for money loans, then they might be unlicensed money lenders, which would be best avoided entirely as well as any other type of loaner who does this.