Alwin Goh
Have you ever felt trapped in a debt cycle? If so, you already know that it can take its toll on your life and relationships.
Borrowing can be an addiction that causes harm not just to your finances, but also to your well-being. If you need a way to break free from this compulsive behaviour and regain control of your finances, you need to know about MLCB self-exclusion.
About The MLCB
The Moneylenders Credit Bureau (MLCB) acts as a central repository hub for borrowers’ credit data in the Lion City, specifically concerning licensed money lenders.
The bureau only gathers information related to borrowers’ information with licensed money lenders and doesn’t include details about bank loans or deposits. Additionally, the MLCB doesn’t make lending decisions on behalf of money lenders.
Singaporean licensed money lenders are all mandated to consistently report borrowers’ repayment statuses to the MLCB. This regular reporting ensures the information remains current and updated.
The MLCB generates a detailed loan information report for each borrower, including various aspects such as current loans, loan types and durations, outstanding principal amounts, the total amount owed including interest, and repayment statuses for all current loans. These credit reports enable borrowers to keep track of their credit to help them with debt management.
Additionally, licensed money lenders use these MLCB reports to assess a borrower’s credit history before approving new loans. This is crucial to evaluate the credit risk associated with potential borrowers and decline loans for those borrowing beyond their means.
What Is MLCB Self-Exclusion?
The MLCB self-exclusion allows individuals in Singapore to voluntarily ban themselves from taking loans from licensed moneylenders.
The MLCB Self-Exclusion is vital for those who need a safety net to avoid excessive borrowing or break the cycle of debt. It’s like setting a boundary. When you opt for the MLCB self-exclusion, it means you don’t want any loans from licensed moneylenders for a specific time. You can use this period to control your finances and steer clear of getting into more debt than you can handle.
Once you’re on the said list, any licensed moneylender checking the MLCB before approving a loan will see that you’re on it. If you apply for a loan during this time, the moneylender will automatically decline your loan request.
How To Enrol In MLCB Self-Exclusion
If you have Singpass, you can easily apply for self-exclusion through the Moneylenders Credit Bureau website.
For those without Singpass, if you have a friend willing to help, they can assist in registering you with the Moneylenders Credit Bureau.
Before allowing someone to submit your documents online, ensure you have all the necessary paperwork ready to upload. Here’s what you need to do:
- Complete and sign an authorization form for registration or withdrawal from the Self-Exclusion Listing.
- Provide evidence verifying your identity for the exclusion request. If someone else is registering you, the exclusion won’t become active until the MLCB has reviewed and validated the submitted documents.
- Both you and the authorised individual will receive email updates on the progress of the registration process.
So how much is it?
Prepare to pay S$3 to add or remove information from the MLCB self-exclusion. Meanwhile, you must settle S$5 for a representative to register or withdraw on behalf of a foreign national without Singpass.
If someone adds you to the credit bureau’s Self-Exclusion Listing, the time he or she did so and the ability to remove yourself from the list is available in your MLCB report. You can access the report by purchasing it from the bureau.
Self-exclusion is strictly voluntary so it must be requested by the individual. Any third-party application for exclusion without explicit consent is considered void by the MLCB.
What To Do If A Money Lender Grants You A Loan Even With Your MLCB Self-Exclusion
If a moneylender grants you a loan even with the knowledge that you are on the MLCB Self-Exclusion list, the establishment is probably not registered with the Moneylenders Credit Bureau or is acting against regulations.
In such cases, you have the right to report the moneylender to the relevant authorities for further investigation and potential penalties.
Licensed moneylenders are held to certain standards and regulations. For example, here are the maximum fees they can charge:
- $60 for a late payment fee
- Up to 4% interest per month
- Up to 4% late interest fee per month
- 10% administrative fee from the loan amount
Moreover, Under the Moneylenders Act (Chapter 188, Part III), advertising money lending services are limited to the following:
- Print-based business or consumer directories
- The licensed money lender’s official website
- Banners and other physical ads displayed within or outside the authorised office location of the money lender
Licensed money lenders are also not allowed to use any other advertising channels aside from the ones mentioned above. This means they cannot advertise on commercials, radio advertisements, billboards, emails, or SMS.
These regulations extend to online loans as well. When advertising loans online, money lenders must present information in a straightforward and factual manner without misleading customers.
Furthermore, licensed money lenders are prohibited from engaging in unfair business practices, including making false claims or misrepresenting information to customers. Compliance with these regulations ensures transparency and fairness in promoting money lending services in Singapore.
How To Ban Someone From Taking Out A Loan
If someone you care about is continuously borrowing money from lenders and facing difficulties, it might be time to take action and prevent them from further borrowing money.
Knowing how to stop someone from accessing loans is important in such situations, especially to steer them away from ah longs.
Discover the difference between licensed moneylender and unlicensed lenders here.
The Moneylender’s Association of Singapore (MLAS) has a Do Not Lend (DNL) directory that is accessible through its website. To request someone’s ban from taking loans, here’s what you need to do:
- Visit the MLAS website to initiate the ban request.
- Provide verification documents either via mail or email to support your request.
- Pay the S$50 fee for each request.
- Ensure you prepare the necessary documents:
- A photocopy of the individual’s NRIC (both sides).
- Evidence confirming your relationship with the person, such as a marriage certificate or birth certificate.
- Include a $50 cheque to the “Moneylender’s Association of Singapore”
- A cover letter outlining the reasons for adding the individual to the DNL directory, along with your complete name and contact details.
Final Thoughts
Sometimes, tough decisions are essential to protect yourself or a loved one from dangerous financial habits. The MLCB Self-Exclusion is a necessary step to safeguard your financial well-being. By taking control of your own exclusion from moneylenders, you can ensure that you maintain a sense of control over your financial decisions.
However, are you currently falling into a debt trap and having a hard time repaying multiple debts? You may consider getting a debt consolidation loan.
