Your rights, even after you sign

For many borrowers, the moment they sign feels like the moment control passes to the lender. It’s understandable — you’ve committed to a legal obligation, the money is in your hands, and the repayment clock has started. But your rights don’t end at the point of signing. The Moneylenders Act continues to govern how your lender must treat you, what they must provide, and what they are prohibited from doing for the entire duration of your loan.

• Issue a receipt for every repayment. Every time you make a payment — whether in cash or by transfer — your lender is legally required to issue you a receipt. Check each one for accuracy: your name, the amount paid, and the date should all be correct. Keep every receipt for your records.
• Provide a statement of account twice a year. Your lender must send you a statement of account at least once every January and once every July. This should reflect your outstanding balance, payments made, and any charges applied. Check it against your receipts and flag any discrepancies immediately.
• Charge late interest only on what is overdue. If you miss a repayment, late interest can only be applied to the amount that is actually overdue — not your full outstanding balance. For example, if your monthly instalment is $500 and you miss it, late interest applies to $500 only, not the remaining loan amount. This is a legal requirement, not a courtesy.

Good recordkeeping is one of the most practical things you can do as a borrower. Keep the following for the entire duration of your loan:

• Your copy of the Note of Contract
• Every receipt issued for each repayment
• Every statement of account received in January and July

If a dispute ever arises over payments made, charges applied, or outstanding balances, your documentation is what protects you. Without it, it becomes your word against the lender’s. With it, you have a paper trail.

If you miss payments, your lender can take steps to recover the debt. Understanding what is and isn’t permitted helps you recognise when a line is being crossed.

• What is permitted: Contacting you to request repayment, sending reminders, and taking legal action to enforce the loan contract. A lender or debt collector may also approach you at your home or workplace — this can be uncomfortable, but it does not by itself constitute an offence.
• What is strictly prohibited: Violence, threats, abusive language, and vandalism are all illegal regardless of the debt situation. No licensed lender or debt collector can resort to these tactics.
• If it crosses the line: Lodge a police report immediately, and inform the Registry of Moneylenders. Harassment during debt collection is a criminal matter, not just a civil one.

The worst thing you can do is go silent. If you’re struggling to meet your repayments, here’s what to do.

• Talk to your lender early. Negotiating a revised repayment arrangement is possible — it’s a private contractual matter between you and the lender, and many lenders would rather work something out than pursue legal action. An intermediary such as a lawyer or social service agency can help facilitate this if needed.
• Consider self-exclusion via MLCB. If you’re concerned about your borrowing getting out of hand, you can voluntarily apply for self-exclusion through the Moneylenders Credit Bureau. Once registered, licensed moneylenders cannot grant you any new unsecured loans for one or two years. The process is voluntary and requires your own consent — no one else can do it on your behalf.
• Reach out to a welfare organisation. These organisations can provide guidance and, in some cases, help you negotiate with lenders:
  • Adullam Life Counselling — 9423 8832
  • Credit Counselling Singapore — 6225 5227 (handles cases that also involve bank debts)
  • One Hope Centre — 6547 1011
  • Arise2Care Community Services — 6909 0628
  • Silver Lining Community Services — 6749 0400

The full list of approved organisations is available on the Ministry of Law’s website.

If your lender has acted improperly, you are not without options.

Lodge a complaint with the Registry of Moneylenders at go.gov.sg/rompefir or call 1800-2255-529. The Registry investigates all complaints and will not disclose your identity to the lender without your consent. Note that the Registry cannot negotiate loan terms on your behalf — that remains a private matter between you and the lender.

Bring unfair contract terms to the Small Claims Tribunal or Court under the Consumer Protection (Fair Trading) Act. Courts also have the power to set aside loan transactions that are exorbitant or substantially unfair — a meaningful protection that exists specifically for borrowers.

Lodge a police report if you experience any harassment, threats, or violence during the debt collection process.