Loan sharks force debtors to sell flats then pocket COV

Loan sharks are allegedly employing a new method to get debtors to pay up.

Insisting on debtors selling their houses, the illegal money lenders will then force debtors to hand over the cash over valuation (COV) as payment.

The COV is what buyers pay above the valuation of the flat, as determined by an HDB-approved valuer.

Illegal moneylenders would recruit real estate agents, some of whom are debtors themselves, to carry out the sales.

In return, the agents get commissions of up to 8 per cent, compared with the usual one per cent to five per cent.

Admitting he collects an eight per cent commission on each property, one such agent said the high commission is in exchange for keeping quiet.

Declining to be named, he said he knew of at least five others who were doing the same thing.

The Council for Estate Agencies said it has not received any complaints so far and can only act if gets any.

ORIGINAL SOURCE
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