Things licensed money lenders are forbidden to do when collecting debts

Debt collectors have a well-deserved public image for being arrogant, nasty, and sometimes frightening when trying to convince debtors to pay up. The federal Fair Debt Collection Practices Act (FDCPA) was designed to prevent these irritating and abusive practices from happening. Credit Empire is a well-reputed licensed money lender which is good at money lending in Chinatown. They follow all the rules and regulations and know what buttons should not be pushed.

Here’s what a licensed moneylender is forbidden to do when collecting debts.

Make threats, Bully, or Harass

According to the Protection From Harassment Act, no licensed money lender is allowed to threaten their clients, use abusive language, insult or engage in abusive or disrespectful behavior with their clients. They cannot publish information about the client’s identification – harass, scare, or upset the client in any way, shape or form. Essentially, this rule prohibits a licensed moneylender from engaging in much of the potentially harmful behavior. Nobody has the right to call you names, harass you in any way, or disrespect you in any way. Better yet, this law ensures that a licensed moneylender cannot cyberbully or shame you online.

Damage property

Some debt collectors may threaten to destroy or remove your home, car, or other valuables if you don’t pay your debts. However, a licensed money lender in Singapore cannot confiscate any of your properties. Furthermore, a money lender or debt collector is prohibited from causing damage to your property. Otherwise, he faces a year in jail, a penalty, or both under the Penal Code. This is true even if the property is not fully destroyed but has been damaged to the point that its value or utility has been diminished.

Stalking and injuring

A money lender cannot constantly monitor and track the whereabouts of a borrower because this might be deemed unwarranted stalking. An act like this is illegal, especially if the purpose is to frighten or disturb you. In Singapore, causing bodily harm to another person is a serious crime. If a moneylender harms a borrower to the point where he is injured or incapacitated, the criminal faces up to 2 years in prison a hefty fine, or both. Offenses involving grave bodily harm, such as inflicting injuries, dislocations, or permanent scarring, could result in a 10-year sentence and a fine.


Profession money lenders know what they can or cannot do. They are both reliable and credible. Unlike loan sharks, they know where to draw the line. Licensed moneylenders in Singapore have to follow the rules and regulations laid out by the respective agencies to operate legally and conduct business in the future.