How To Ban Someone From Taking A Loan With A Licensed Money Lender in Singapore

Borrowing money is a common practice, and there’s nothing inherently wrong with taking out a loan when you need it. However, for some individuals, borrowing can become a compulsive behavior that spirals out of control. This leads to a cycle of debt that can have devastating consequences for both the borrower and their loved ones.

If you have a family member or friend who seems unable to stop taking out loans, despite already being in financial difficulty, it’s natural to want to help. This can be done by learning how to ban someone from money lender.

Fortunately, in Singapore, there are measures in place to help individuals who are struggling with compulsive borrowing. The Moneylenders Act provides a framework for borrowers to voluntarily exclude themselves from taking loans from licensed money lenders and also allows family members to apply to ban their loved ones from borrowing.

Before you find out how to ban someone from money lender, you need to know what the Moneylenders Credit Bureau (MLCB) is. This is a centralized data repository that stores information on borrowers’ loans and repayment records with licensed moneylenders (LMLs) in Singapore. It was established in March 2016 under the purview of the Ministry of Law (MinLaw) to help licensed moneylenders make more informed lending decisions and prevent borrowers from over-indebtedness

As of July 1, 2021, Credit Bureau Singapore (CBS) has been designated by MinLaw as the new operator of the MLCB. The MLCB collects and maintains data on loans granted by licensed moneylenders, but it does not collect information on borrowers’ bank credit facilities, bank deposit information, or make lending decisions on behalf of the moneylenders.

The primary functions of the MLCB are:

• To maintain a centralized database of borrowers’ loan information and repayment records with licensed moneylenders.
• To generate credit reports, known as Loan Information Reports, which licensed moneylenders can purchase to assess a borrower’s creditworthiness before granting a loan.
• To help borrowers better manage their loans and financial situation by providing them access to their own credit reports

The MLCB Self-Exclusion is a voluntary program that allows individuals to exclude themselves from taking loans from licensed moneylenders in Singapore for a period of one or two years. By enrolling in this program, you’re essentially telling all licensed moneylenders not to grant you any loans during the exclusion period.

This program is designed to help individuals who may be struggling with compulsive borrowing or are at risk of over-indebtedness. It serves as a circuit breaker, giving you time to reassess your financial situation and break the cycle of borrowing.

When you’re enrolled in the MLCB Self-Exclusion program, licensed moneylenders are prohibited from granting you any loans. If a moneylender does grant you a loan during your exclusion period, they may face disciplinary action from the Registry of Moneylenders.It’s important to note that the self-exclusion applies only to loans from licensed moneylenders. It does not cover loans from banks, financial institutions, or unlicensed moneylenders.

If you’ve decided that self-exclusion is the right step, here’s how to ban someone from money lender.

1. Go to the Moneylenders Credit Bureau (MLCB) website at www.mlcb.com.sg.
2. Click on the “Self-Exclusion” tab on the homepage.
3. Read through the information provided to ensure you understand the terms and conditions of the self-exclusion program.
4. If you’re ready to proceed, click on the “Apply Now” button.
5. Log in using your Singpass (for Singaporeans and Permanent Residents) or your FIN number (for foreigners).
6. Complete the online application form with your details.
7. Choose your preferred self-exclusion period (one or two years for Singaporeans and PRs, two years for foreigners).
8. Make the payment for the self-exclusion application fee (currently $1.51 including GST).
9. Once your payment is processed, your self-exclusion will take effect immediately.

Once you’ve registered for self-exclusion, you cannot revoke or cancel your application until the end of your chosen exclusion period. Therefore, be certain that you’re prepared to commit to not borrowing from licensed moneylenders for the duration of your self-exclusion.

When you learn how to ban someone from a money lender, you’ll need to choose the period for which you want to be excluded from borrowing from licensed moneylenders. This can either be one or two years.

It’s important to note that the self-exclusion period starts from the date of your application and cannot be changed once it has begun. If you wish to extend your self-exclusion period, you’ll need to submit a new application and pay the fee again when your current period is nearing its end.The fee for self-exclusion is a one-time payment that covers the administrative costs of processing your application and updating the MLCB database. This fee is non-refundable, even if you change your mind about self-exclusion after applying.

If you have enrolled in the MLCB Self-Exclusion program and a licensed money lender still grants you a loan, it is a serious breach of regulations. The money lender may be acting against the rules set by the Ministry of Law and the Moneylenders Credit Bureau. In such a situation, you should take the following steps in how to ban someone from money lender:

Collect any documentation related to the loan, such as the loan agreement, receipts, or correspondence with the money lender. This evidence will be crucial when reporting the incident to the relevant authorities.

Reach out to the Registry of Moneylenders, which is the regulatory body overseeing licensed money lenders in Singapore. Inform them about the money lender’s violation of the self-exclusion rules and provide them with the evidence you have collected.

Contact the Moneylenders Credit Bureau (MLCB) and inform them about the money lender’s breach of the self-exclusion regulations. Provide them with the necessary details and evidence. The MLCB will investigate the matter and take appropriate action against the money lender if found guilty.

If you have suffered any financial losses or distress due to the money lender’s actions, consider seeking legal advice from a qualified professional. They can guide you on the best course of action and help you protect your rights as a borrower.

Do not make any payments to the money lender or engage in further communication with them. Any interaction may be used against you or weaken your case when reporting the incident to the authorities.

Remember, licensed money lenders are obligated to check the MLCB Self-Exclusion Listing before granting any loans. If they fail to do so and grant a loan to someone who has enrolled in the program, they are violating the law and will face disciplinary action from the relevant authorities.By promptly reporting such incidents, you can help protect yourself and others from unscrupulous money lenders and contribute to a safer, more responsible lending environment in Singapore.

Learning how to ban someone from a money lender is a powerful tool to protect yourself or your loved one. The MLCB Self-Exclusion program provides individuals with the means to take control of their borrowing habits and prevent the consequences of over-indebtedness. However, if you do find yourself in need of a loan, it’s essential to borrow responsibly and only what you can afford to repay.

MoneyIQ SG can help connect you with reliable and trustworthy licensed money lenders in Singapore, ensuring that you have access to credit when you need it most. By understanding the options available and making informed decisions, you can navigate the world of money lending with confidence and empower yourself and your loved ones to achieve financial stability and security. Ready to take out a loan? Get a tailored personal loan offer here.