Getting instant cash loans in Singapore is easy with the help of numerous money lenders. However, aside from legitimate money lenders, there are also plenty of loan sharks in the country who have a bad reputation for many reasons. Loan sharks are illegal money lenders who usually target individuals with a dire need to borrow money but cannot access it from legitimate sources.
Distinguishing between legal and illegal money lenders is crucial; loan sharks are predatory because they charge incredibly high interest rates and often use harassment and threatening tactics to force borrowers to repay their debt. While they do not always look as harmful as those famously depicted in local movies, such as Money No Enough, avoiding services from loan sharks is still the best option.
If you happen to have been in dire need of cash loans with fast loan approval in Singapore and have borrowed from loan sharks, do not fret. Here are three essential steps to solve your loan shark problem.
1. Report the loan sharks to the proper authorities
If you are experiencing harassment or intimidation tactics from loan sharks, avoid panicking or feeling powerless. The vital thing you should do is contact the police right away, even if you are not sure your creditors have committed any unlawful acts. If you genuinely feel harassed or threatened, it would be best to trust your instincts. The authorities will then answer your queries and inform you of the proper steps.
Aside from dialling 999 for the police, another hotline you can contact is X-Ah Long at 1800-924-5664. Although its name sounds amusing, it is a legitimate hotline operated by the Singapore Police Force. If you can describe how you have been harassed or threatened by loan sharks, they will do their best to solve your case.
The sooner you reach out to the authorities about your case, the sooner the legal procedure and necessary recordings can start. On the other hand, if you do not contact the authorities right away, there is a possibility for some evidence to be lost or compromised. This can then impact the legal proceedings along the line.
2. Stop making payments to the loan sharks
A simple way to solve your loan shark problem is to stop paying loan sharks. Keep in mind that the objective of the loan sharks is to trap you in an endless debt cycle by attaching exorbitant interest rates to the principal amount of your loan. You do not have to continuously become a victim of this. Remember that if you have taken out a loan from a loan shark, you are not obligated to repay them.
However, since they are experts at intimidating people through harassment and threats, not paying loan sharks can be a tough challenge. Apart from lewd means of harassment, such as spraying paint around your front door, loan sharks may sometimes resort to humiliation tactics like insulting you and your family. It is important that you do not give in. Furthermore, avoid repeating the mistake of continuously paying loan sharks after filing your police report. Keep in mind that what they do is illegal, and the law is on your side.
3. Change your personal information
A common strategy that loan sharks employ to force people to repay their easy cash loans is to capitalise on the borrowers’ personal information, such as their home address, business address, contact number, and Singpass login details. For example, they may make numerous calls to your mobile phone while you are at the office or even threaten to come to your office to make you feel humiliated. This will then pressure you to repay the loan.
If they got a hold of your Singpass login details, they may even sign legal documents and transfer specific assets without your consent or knowledge. Even with the operation of two-factor authentication, it is still possible for loan sharks to do this. Therefore, it is necessary that you immediately change your personal information upon knowing that they have been compromised. After doing so, go straight to the police to file a report.
It is crucial to avoid falling victim to loan sharks because these illegal lenders have the reputation of harassing and threatening borrowers who cannot repay their debt due to the extremely high interest rates they charge. That said, if you have already borrowed money from loan sharks due to an urgent financial need, the essential steps you should take to avoid or stop getting harassed or threatened are to report your case to the authorities immediately, stop paying the loan sharks, and change your personal details.
Furthermore, moving forward, you should only borrow money from reliable and legitimate money lenders like Orange Credit. We are a reputable licenced money lender that offers a wide variety of reasonable loans for various financial needs, such as fast cash loans, personal loans, business loans, payday loans, and more. If you currently have more than one debt to repay, we also provide the best debt consolidation loans in Singapore. Feel free to contact us now to learn more.