Licensed Money Lender is worst than AH LONG !!

let me try to share my friend's story when he tried to borrow from licensed money lender....

My friend was unable to get a loan banks, and after seeing the attractive ads on papers, he tried to borrow from 2 licensed lender. He is drawing a monthly salary of about 3k, normal working man. Unable to get anymore loan from banks because he has bad debts before, but not a bankrupt.

This is what he told me... after he approach the licensed lender. I was shocked when I hear the offer and interest rates !!!

Licensed Money Lender #1 - offer him $1500 loan, weekly repayment scheme.
after all the interest and "admin fee" , he only able to take back $1080 on the spot, as he is has been approved.
but the repayment is shocking !!!

he has to pay 3X6 weekly of $300 !!!
any late payment, there will be $130 penalty !!

meaning, he take $1080, and got to return $1800 in 6 weeks !! Unbelieveable !!

Licensed Money Lender #2 offer him $2000 loan, monthly repayment scheme
after all the interest and "admin fee" , he only able to take back $1420 on the spot, as he is has been approved.
but one month later, he has to pay $2400, otherwise, he has to pay a monthly interest of $400 + late payment if $130 (meaning total $530). And next month, he still has to pay $2400 in order to clear the debts !!

Anyone has any experience with licensed money lender ?
Isnt it worst than Ah Long ??

And guess what when he was trying to negotiate for a lower interest rate. The Manager actually ask him...
"Do you buy 4D ?
"Do you buy 4D from govt or from Pte ?"
"Buying from govt is more expensive than buying from private? right ??"

What the manager is trying to say is... licensed Money Lender is more expensive than unlicensed AH LONG, because the govt tax them alot !!

Unbelievable !! I could not believe it !! Fortunately, my friend did not take up the loans....

That is why i share with you guys here.... any comments ??

Ask your friend take from all then declare bankrupt.

Narong Wongwan said:

Ask your friend take from all then declare bankrupt.

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Licensed Money Lender cannot pour paint and lock door only some embarassment tricks.

In the first place, the loan amount is too small and not worth it. Surprise even LML is allow to practise Lay Bai Siao (Weekly Account) legally.

chonburifc said:

Licensed Money Lender cannot pour paint and lock door only some embarassment tricks.

In the first place, the loan amount is too small and not worth it. Surprise even LML is allow to practise Lay Bai Siao (Weekly Account) legally.

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Yes.. they do Lay Bai Siao (Weekly Account) !!! Unbelievable !!
And according to my frd.... the loan consultants are mainly young ah bengs.... is like the legalised Ah Longs !!
And the office has a few SYT Ah Lians type... all wear mini skirts !!!

What surprised me.. is CASE allowed them to advertise all their bull shit !!
WTF is CASE doing ???

chonburifc said:

Licensed Money Lender cannot pour paint and lock door only some embarassment tricks.

In the first place, the loan amount is too small and not worth it. Surprise even LML is allow to practise Lay Bai Siao (Weekly Account) legally.

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Yes law is on their side so need more desperados to showhand with them play by law play bankrupt....more money losing cases then these legal ah longs will close ups

This not under CASE. If the business itself is legal, there is not under CASE unless, the seller is not delivering the product/service as agreed. In this case, the borrower knows the repayments, the loaner indicate their repayment conditions. Both side willing parties.

It's just a job. These ah bengs and ah lians like your friend also need to feed their families. Blame it on the policy.

Legal $lenders or ah long$....all are bloody blood suckers to me!

Narong Wongwan said:

Yes law is on their side so need more desperados to showhand with them play by law play bankrupt....more money losing cases then these legal ah longs will close ups

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Don't think they will close ups. A sucker is born every minute. Only way is to regulate these LML with fair market rate as with the bank. Don't think this will happen as this will make it not profitable and LML have to close shops and so we are back with the illegal Ah Longs.

chonburifc said:

Don't think they will close ups. A sucker is born every minute. Only way is to regulate these LML with fair market rate as with the bank. Don't think this will happen as this will make it not profitable and LML have to close shops and so we are back with the illegal Ah Longs.

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this is the scenerio now.... when a person need a loan, he 1st go to banks, after that credit cards.... after that he goes to Ah Long, and once he cannot pay Ah Long, he goes to LML !!

Because LML interest is actually higher than Ah Long !! Unbelievable !!

There are people who actually think that LML will actually counter the Ah Long !!

Yes a friend of mine also made inquiries about a loan once. The guy ask him his singpass to verify his income. That's fucking crazy..

alvin36 said:

any comments ??

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Should be "Licensed Money Lender is WORSE than AH LONG.".

"Worse" is comparative.

"Worst" is a superlative.

Chains of pawn shops and LML being supply to meet demands from gamblers who lost money at MBS & RW Casino. that y few year ago, our police 'actively' caught illegal ahlong and heavy sentence given for illegal ahlong' activities. this is clearing path for all thesw LML to come into biz in first plc. More of these BIz owners being given liscence are pple who have closed links or related to our garments lah

Same things for G land, kanna raided randomly many years when liscence given for expensive legal brothel supplied 'expensive china gals', who's those bosses n operators behind can get those liscense

don't forget, we r the 'least corrupted nation'

Technically the legal loansharks can charge whatever rate they want as long as the agreement is signed by both lender and borrower. The sky high rates cover the credit risk these legal ah longs have to undertake. That's business and the contract is binding in court.

Your friend is still sensible so he found the terms insensible. If it is a desperate gambler, he will take any loan on any terms.. That's why these legal ah longs are still in business.

Don't understand what is a licensed moneylender.
Didn't they used to be called banks, finance companies or pawnshops?
3 things are going to happen:
1. The govt is going to make the regulation very tight such that lenders and borrowers will find it difficult to operate.
2. There are going to be a lot of default cases, many more people will go into financial distress, some will be hounded by the debt collectors.
3. Some of the moneylenders will go bust as well. They may borrow from others in anticipation of getting their debts collected, fail to collect and then default on their own debts. The rollover effect will be immense and not only the borrowers, but also the lenders will become distressed.

all the attractive interest rates they advertised in papers are all Bull Shit.

When you call LML, they will tell you they offeer good rates and low interest, and ask you to go their office. You only need to bring your orginal IC and Singpass. Once you are there, the plans they offer is worse than Ah Longs, and they will tell you the good interest that they advertise is only for regular customers....

My friend if going to call Sin Min one day to complain, and hope Sin Min send reporters as under-cover to get a real picture of this fucking biz that LML is in

Leongsam said:

Should be "Licensed Money Lender is WORSE than AH LONG.".

"Worse" is comparative.

"Worst" is a superlative.

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Great advise from auntie Sam as usual.

When you need money, you borrow money. When it comes to repayment with interests and charges of course, you complain against the lenders. That's real sinkified. Banks and moneylenders are not charities. Next time you want to get money without needing repayments, interests and charges, look for MCYS or charities.

mako65 said:

Legal $lenders or ah long$....all are bloody blood suckers to me!

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How about the biggest LEEgalized Ah LOong? P$P ? Pay And Pay?? One party that binds them all?

Having LML doesn't solve the real problem. Makes it worse. Why? Because the high interest rates can now be legal as long as both parties agree. Find me just 1 LML who is prepared to charge below 12-15% interest monthly. LML is supposed to give borrowers more legal choices but in actual fact, it doesn't as all LML charge 'market rates".

The only plus for the authorities is that they can now claim they have eradicated the ah longs. In reality, they have not. They can now trace vandalism cases easier than before. Sweeping problems under the carpet remains a key pillar in options taken by the authorities as they are clueless as to the real issues or being wrongly briefed, they will forever come out with unworkable solutions.

Ramseth said:

When you need money, you borrow money. When it comes to repayment with interests and charges of course, you complain against the lenders. That's real sinkified. Banks and moneylenders are not charities. Next time you want to get money without needing repayments, interests and charges, look for MCYS or charities.

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Agreed ..no one force them to borrow from those LML .