The actions of this licensed moneylender disgusted me (Woman took only $128k of $1.55m 'loan'; July 8).
The company's tactics are not very different from that of illegal loan sharks.
The legalisation of moneylenders is to facilitate those in need of cash but are unable to obtain credit from traditional sources, such as banks and finance companies, to secure loans without going to loan sharks.
However, in this case, the moneylender had clearly infringed the Moneylenders Act by imposing excessive interest "under the guise of administrative fees for loan refinancing". The borrower's situation was exacerbated with the filing of a bankruptcy suit against her for not being able to pay.
Will action be taken against the moneylender for infringing theMoneylenders Act?
Will the authorities be taking steps to prevent the owner of that moneylending company from participating in the industry, or would he be able to set up another moneylending company and continue to operate?
Are there more of such cases?
Clearly, a strong and clear message must be sent to assure the public on the credibility of the licensed moneylenders in the industry.