Key Takeaways
- Borrowers in Singapore have the right to file complaints against a licensed money lender if loan terms, fees, or collection practices breach the Moneylenders Act.
- Licensed money lender harassment is illegal. Threats, intimidation, or unfair treatment can be reported through proper legal channels.
- The Registry of Moneylenders under the Ministry of Law is the official authority for handling complaints against licensed lenders and offering clear, structured investigation processes.
- Proper documentation matters—maintaining loan agreements, receipts, and communication records strengthens your case when you report money lender misconduct.
- Choose licensed lenders like MM Credit for legal protection, transparency, and access to proper recourse—unlike unlicensed lenders who may use threats or charge excessive interest rates.
Dealing with loan issues can be stressful—especially if you suspect a lender has crossed the line. That’s why it’s crucial for borrowers in Singapore to know their rights and understand how to file a complaint against a licensed money lender through proper legal channels.
Licensed lenders in Singapore are bound by strict money lender rules under the Moneylenders Act. When a lender fails to comply with these regulations, borrowers have the right to lodge an official complaint and seek assistance from the relevant authorities.
This is also why choosing to work only with licensed money lenders like MM Credit is so important. Knowing who you’re dealing with—and understanding the legal protections available—gives you the confidence to act decisively and protect yourself if something doesn’t feel right.
Understanding Your Rights as a Borrower in Singapore
A licensed money lender is a lender approved and regulated by Singapore’s Ministry of Law and officially listed in the Registry of Moneylenders. These lenders must comply with strict legal requirements designed to protect borrowers from unfair practices, harassment, and financial harm.
Under Singapore law, licensed money lenders are required to:
- Clearly explain all loan terms before you sign any agreement
- Charge interest rates and fees only within legal limits
- Follow regulated and lawful debt collection practices
- Treat borrowers fairly, professionally, and with respect
Despite these safeguards, some borrowers may still wind up lodging complaints against licensed lenders due to the following reasons:
- Unclear or misleading contract terms
- Unexpected or excessive fees
- Aggressive, improper, or harassing collection behaviour
- Feeling pressured to sign loan agreements they did not fully understand
When it comes to licensed money lender harassment, Singapore law provides clear protections. Borrowers are legally protected against threats, intimidation, or public shaming, and have access to proper legal channels to report misconduct and seek assistance when needed.
When Should You Make a Complaint Against a Money Lender?
Not every disagreement with a money lender needs to escalate into a formal complaint—but some situations clearly do. You should consider making a complaint against a money lender if you experience any of the following:
Harassment or Intimidation
Licensed money lenders are not allowed to threaten, shame, or harass borrowers. Repeated phone calls, aggressive or threatening language, and improper contact with your workplace, family members, or friends count as harassment under the Moneylenders Act and the Protection from Harassment Act.
Violation of Loan Terms
If a lender changes your repayment schedule, interest rate, or other loan terms without your consent and acknowledgement, this constitutes a breach of contract and is a valid reason to report misconduct.
Incorrect Charges or Undisclosed Fees
All applicable fees and interest must be clearly disclosed upfront and kept within legal limits. Hidden charges or unexpected fees are not permitted under Singapore law.
Failure to Explain Contract Terms
You have the right to a clear explanation of your repayment schedule, interest, and penalties. Being pressured to sign without a proper explanation is a serious issue.
Legitimate Collection vs Harassment
While lenders may remind borrowers about repayments, all collection activities must remain professional and respectful. Any form of intimidation, threats, or public embarrassment crosses the legal line.
The Moneylenders Act exists to protect borrowers from these situations and provides clear, legal pathways to report money lender misconduct.
Who Handles Money Lender Complaints in Singapore?
Complaints involving licensed money lenders in Singapore are handled by the Registry of Moneylenders, which operates under the Ministry of Law. The Registry is the official authority responsible for regulating licensed lenders, investigating complaints, and enforcing compliance with the relevant legislation. If you need to make a complaint against a licensed money lender — for example, due to unfair practices, violations of loan terms, or harassment — you can:
- Call the Registry of Moneylenders hotline at 1800-2255-529
- Submit your complaint online through the MinLaw’s portal
It is important to note that this complaint process applies only to licensed lenders. Complaints involving unlicensed or illegal lenders should be reported to the Singapore Police Force instead.
How to Report a Money Lender: Step-by-Step Guide
Making a formal complaint can feel daunting, but breaking the process into clear steps makes it much more manageable.
Step 1: Gather Evidence
Start by collecting all relevant documents and records, such as your:
- Loan agreement
- Repayment schedules and receipts
- Messages, emails, or letters
- Call logs or any other communication with the lender
Having complete evidence can speed up the investigation process.
Step 2: Contact the Registry of Moneylenders
Call 1800-2255-529 or submit your complaint through the Ministry of Law’s online platform. This officially kickstarts the complaint process.
Step 3: Provide Full Details
Clearly describe the issue, including dates of transactions or events, amounts involved, names of staff members (if known), and the lender’s licence number. The more specific you are, the easier it is for investigators to assess your case.
Step 4: Follow Up & Investigation
After you submit your complaint, the Registry may contact you for clarification or to schedule an interview. They will review the evidence and investigate whether the lender has violated any regulations.
What Happens After You File Your Complaint?
Once your complaint is lodged, the Registry of Moneylenders will assess the case and determine the next course of action. Their responsibilities include investigating allegations, reviewing all evidence, interviewing the parties involved, and ensuring compliance.
Possible outcomes include:
- The lender is being instructed to correct unfair practices
- Administrative penalties or new licence conditions imposed
- Referral to the Small Claims Tribunal or civil courts for further action
For instance, if a lender charged illegal fees, they may be ordered to refund the excess. In cases of licensed money lender harassment, disciplinary action may be taken to prevent further misconduct.
Additional Support and Resources
Sometimes, lodging a complaint against a money lender alone may not be sufficient, and you might need to explore other avenues of support.
If you ever feel threatened, harassed, or unsafe at any point, it is important to contact the Singapore Police Force immediately. Illegal or unlicensed lenders can be reported through the X-Ah Long hotline at 1800-924-5664 or via the I-Witness portal.
For those facing genuine financial difficulties, help is available. Social services and financial counselling can provide guidance and support, especially when loan repayments are becoming unmanageable. If you’re unsure about next steps, this guide on what to do when you’re unable to repay a money lender can offer practical advice and options to help you regain control of your finances.
Tips to Protect Yourself Before Taking a Loan
Before taking out a loan, a few simple precautions can go a long way in protecting yourself:
- Always check the official list of registered money lenders to ensure you’re dealing with a licensed lender
- Be clear on legal interest rates, late fees, and the total repayment amount, so there are no surprises
- Retain copies of all loan documents, receipts, and communication records with the lender
By following these steps, you can significantly reduce the risk of disputes and avoid the stress of having to report money lender issues later on.
Why Choosing the Right Licensed Lender Matters
Complaints against licensed money lenders are handled through established legal channels, providing borrowers with adequate protection and a way to seek assistance when issues arise.
In contrast, illegal or unlicensed lenders operate outside the law. They often charge excessive interest and may resort to threats, harassment, or even violence. Borrowers who deal with unlicensed lenders often find themselves trapped in spiralling debt and fear due to exorbitant interest rates and aggressive debt collection tactics.
These real-life cases underscore why choosing a regulated lender like MM Credit matters. Reliable money lenders follow transparent practices, are accountable to authorities, and provide borrowers with legal protections and recourse if something goes wrong.
Conclusion
Knowing how to file a complaint against a licensed money lender empowers you to protect your rights and act with confidence. By recognising misconduct and understanding the proper reporting process, borrowers can avoid unfair treatment and make informed financial decisions.
If you believe a lender has acted unfairly, don’t hesitate to report money lender misconduct through the appropriate official channels. Speaking up not only protects you, but also helps keep the borrowing environment safer and fairer for others.
At the same time, make informed choices from the start by working only with licensed and reputable lenders. For clear guidance and responsible lending support, contact our team to learn more or explore our blog for practical articles to help you stay informed and protected. Whenever you’re ready, apply with MM Credit for a transparent, regulated, and borrower-focused experience.
