Getting Tough on HDB Resale Exploiters

Hahaha! finally. I guess more of these advertisement will start to disappear from the Newpaper.

As brought up by 1 commenter, Mypaper report on 28 April 2010 that MND is keeping a close watch on these legal loanshark exploiting this as a means of money lending. thank mypaper.sg for publishing such a important news.

Good Luck to these Legal Loansharks!

More Site Visits....

Seeing so many legal loansharks appearing and competing for advertisement on the newpaper, I decide to drop by a couple to check.

True enough, they waive the admin fee of $30 but i gather some interesting details.

As I browse through the paper, I saw an ad that is eye catching. 2x month income and flexible repayment.
So I dropped by to a moneylender based at Lavender MRT at French Road, it does give me the ah beng loanshark feeling. There were many mid age ah beng looking guy inside and I ask for 1K loan. They offer only weekly and bi weekly loan. They charge up to 5% for loan approval fee and 5.71% weeekly and 15% of the principal sum for late payment. So...... I decline the deal.

However I manage to catch hold of another interesting information from a borrower. Earlier 1 mentioned a lender at peninsula plaza, the place where the staff look more white collar and professional. You won't feel intimidated inside. He revealed he took a loan of 1k with a repayment of weekly interest 3.33% sound good?

Here the catch, Although there is no admin fee, he have to forfeit 5% for the loan approval fee which is $50 and $200 as first repayment. In the end he get only $750. The funny thing is the 1st repayment is on the day itself and the actual repayment start just the next week. He was issued a repayment tracking card to track his repayment and the person to liase with. He was told to make his repayment by 6pm on the repayment date and call the liasing person once he did a bank transfer. If he can't make it by 6pm, he just need to inform the person by sms or call. He even got photographed on a webcam. LOL! Impressive by the professionalism using technology.

Stay tuned for more Field Report..

No Admin Fee but more licenced moneylender poping up

Since the last time i blog, you see more and more of these moneylenders advertising nowadays and operating closer our heartland. In addition With Competition toughen up, have waived the $30 admin to stay competitive. They got no choice, No borrower = no profit

This saga remind me of Bubble tea craze burst... Lol

Or Maybe it time for them to realise it is also time to lower the interest to stay in competition.


Perhaps I should goes to Review this Article:

THE NEWPAPER ( 5 April 2010 , Monday )
Mr Mohamad, who is married with no children, said he initially needed $5,000 for bills and groceries but then became "greedy" and borrowed more.But that $17,000 "loan" ballooned when hidden costs and interest were added.When his flat was sold a few months later, he should have got more than $50,000, but got less than $8,000.Other home owners who have taken such loans said they too were hit after they sold their flats.Here's how it works - a homeowner approaches the licensed moneylenders who advertise their business openly.The HDB homeowner is given a loan upfront with the promise that the flat will be sold at a hefty profit.In high-risk cases, the licensed moneylenders get the homeowner to sign documents that allow them to lodge a caveat on the flat.The loan sounds attractive. The advertised interest may be just 1 per cent per month.But the actual repayment will be much higher, said problem consultancy firm Bilal Consultants.

Sound Very familiar? Everyday you see on the advertisement stating 1% interest loan for HBD seller... This is a secure loan but looking at it... Well I shall touch more on this next time. :p