So as to protect Singaporeans from over borrowing and land themselves in debt, the ruling body for moneylenders, Insolvency & Public Trustee's Office (IPTO) have been tightening the regulation for legal money banks to follow. Many moneylenders in Singapore are starting to feel challenged in their line of work due to the regulation. Although many of these moneylenders are fast in adapting to the changing regulation, many local lenders voice out that business have decreased.
In the past these licensed moneylenders in Singapore can publicize in newpapers, magazines, web sites and lots of other normal forms to reach people who are searching out a personal loan. Now based on the new regulations, not only can't loan banks advertise, they cannot even call, message or e-mail prospects.
The rational is that cash banks shouldn't con folks to take up loan in any way. This means that having a fan page in Facebook, Twittering about current promotions and advertising in classified are against the law and any moneylender found to damage the laws will be dealt with. The punishment for breaking this can not just be a heafty fine, it could also mean the revocation of their license.
One can not help but ponder whether this would be the only industy whereby it's actually benefitial to publicize your rival service and sites? Typically through advertisement your competitor would get more business, but in this industry, clients would not be just the sole folks that would go knocking on the doors of your competition. They'd end up in legal difficulty when a person publicize their service.
So no only does a legal moneylenders in Singapore have to follow the regulation set up by the authorities, they would have to fend off secret sabotages made by rivals disguise as superb ad of their service. It is no wonder many are worried about running this business and finds that giving personal loans as a moneylender is getting tougher to sustain in Singapore.
In the past these licensed moneylenders in Singapore can publicize in newpapers, magazines, web sites and lots of other normal forms to reach people who are searching out a personal loan. Now based on the new regulations, not only can't loan banks advertise, they cannot even call, message or e-mail prospects.
The rational is that cash banks shouldn't con folks to take up loan in any way. This means that having a fan page in Facebook, Twittering about current promotions and advertising in classified are against the law and any moneylender found to damage the laws will be dealt with. The punishment for breaking this can not just be a heafty fine, it could also mean the revocation of their license.
One can not help but ponder whether this would be the only industy whereby it's actually benefitial to publicize your rival service and sites? Typically through advertisement your competitor would get more business, but in this industry, clients would not be just the sole folks that would go knocking on the doors of your competition. They'd end up in legal difficulty when a person publicize their service.
So no only does a legal moneylenders in Singapore have to follow the regulation set up by the authorities, they would have to fend off secret sabotages made by rivals disguise as superb ad of their service. It is no wonder many are worried about running this business and finds that giving personal loans as a moneylender is getting tougher to sustain in Singapore.
About the Author:
Andy Lim Is a loan officer in maxcredit pte ltd. If you need more information you can visit this site for personal loan
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