New rules for licenced moneylenders starting this Nov 1

Advertisments by licenced moneylenders promising "fast and easy cash", "instant approval" and "low interest rates" will be prohibited from Nov 1, as a result of new measures introduced by the Registry of Moneylenders and Pawnbrokers.

Senior Parliamentary Secretary for Education and Law Sim Ann, who announced this yesterday, said the new measures are aimed at tightening the regulation of licenced moneylenders and safeguarding the interests of borrowers.

A spokesman for the registry said: "Based on our monitoring of the conduct of the business, we felt that more needed to be done to ensure professional conduct among industry players."

Under the new directive, licenced moneylenders are allowed only three advertising channels:

1. business and consumer directories in print or online media
2. their business website and;
3. on the premises of their approved place of business.

Any other forms of advertising, such as on fliers, in text messages and even newspaper classified ads, will be illegal.

Look ma! No teeth!

Besides regulating where licenced moneylenders can place ads, the registry also laid out directives on the ad content.

For example, licenced moneylenders are required to state a fixed telephone line - if they wish to include a contact number - instead of a cellphone number.

The ads must not have misrepresentations, omissions of material fact, and information which cannot be verified. They must also not create unjustified expectations or have graphics that convey inaccurate impressions.

Licenced moneylenders who advertise beyond the three allowed channels may be fined up to $20,000, have their licences revoked or suspended, and have their security deposit of $20,000 forfeited.

Those who breach the rules on ad content may be fined up to $20,000 and face a jail term of up to six months.

For more information on the new measures, visit www.ipto. gov.sg

ORIGINAL SOURCE

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