Licensed Moneylender, Ho Jian Min, Fined $5,000 for Breaches of Moneylending Laws
29 Aug 2018 Posted in Press releases
The Registry of Moneylenders, a department under the Ministry of Law, brought charges in the State Courts on 11 June 2018 against Ho Jian Min, 38 years old, the sole-proprietor of the moneylending business, Empire 90 Credit.
Ho Jian Min held a moneylending licence from 13 June 2015 to 30 August 2017.
On 27 August 2018, Ho pleaded guilty in the State Courts and was convicted on two out of five charges for the offences under section 19(5) read with section 19(1) of the Moneylenders Act (Cap 188) and rules 8(f) and 8(g)(iv) of the Moneylenders Rules 2009 for having failed to inform borrowers, in writing, as to such matters relating to the terms and conditions of the loans extended to them.
Ho was sentenced in the State Courts on 27 August 2018 to a total fine of $5,000, (in default 4 weeks’ imprisonment).
Forty-seven licensed moneylenders or their officers have been convicted and fined for offences under the Moneylenders Act and Rules (“MLA/R”) since 2011 (see Annex (136KB)).
Strict compliance with the MLA/R ensures that loan agreements are entered into in a proper and transparent manner. The MLA/R requires moneylenders to spell out all terms and conditions on a loan contract so that all parties to the contract are clearly aware and assured of what they have committed in. Verbal agreements that are not recorded, do not provide for the same security and can be unfair to borrowers. Clearly written terms and conditions also reduce the chances of moneylenders having to dispute with borrowers on the terms of repayment. In essence, these practices protect the interests of both borrowers and licensed moneylenders. The Registry reminds all licensed moneylenders to adhere to these requirements at all times.
The Registry carries out regular inspections on licensed moneylenders. Where breaches of moneylending laws are found, enforcement measures are taken, including the suspension or revocation of licences, forfeiture of security deposits, warnings and prosecutions. Those convicted of breaches of the MLA/R face a fine of up to $40,000 and/or an imprisonment term of up to two years on each charge.
29 AUGUST 2018
REGISTRY OF MONEYLENDERS
MINISTRY OF LAW
Last updated on 25 Sep 2019