Personal Finance

How To Ban Someone From Taking A Loan With A Money Lender

November 16, 2022

You have a relative who has developed a compulsive borrowing habit that is hurting both himself and his loved ones – in plain language, a serious addiction.

This person needs to be protected from getting any more loans and guided towards recovery.

The problem is that such compulsive behaviour leads many addicts into such a state of desperation that they will do almost anything to continue the cycle, much like how it is with gambling and alcohol.

In this case, that means approaching a money lender for the umpteenth time.

This article will discuss how to ban someone from money lender for their own good.

When To Ban Your Loved One From Taking A Loan

Addiction has been defined as “living in response to one’s history” and is something that happens to one when one needs a crutch to fill a void in one’s life.

The addiction provides temporary relief from whatever trauma the person is dealing with. However, over time, it may worsen to the point where it starts to destroy the person’s life and the lives of their loved ones.

In fact, you may even be an addict yourself, and are trying to prevent yourself from repeating the mistakes that have already damaged you so much, in this case – uncontrolled and excessive borrowing.

So what’s the best course of action? You need to stop the addict from accessing the funds that they need to fuel the addiction.

Addicts are likely to approach their relatives, friends, banks, pawnshops, licensed money lenders, and even loan sharks – if they are desperate enough.

If you have such a family member, you must act fast to cut off access to the money that will allow the cycle to be repeated.

Banning such a person from taking a loan is the best thing to do.

As licensed money lenders in Singapore are fairly easy to find, you need to know how to ban someone from money lender.

How MLAS Offers Protection From Loans

The Moneylender’s Association of Singapore (MLAS) has recently rebranded itself as the Credit Association of Singapore (CAS).

One of CAS’ main objectives, as stated on its website, is to promote moneylending practices in Singapore that are completely ethical. This is reflected in its motto “Integrity Above All”.

Keeping true to these core values, the CAS takes its role of encouraging socially responsible practices in the moneylending industry in Singapore very seriously.

It has created an option on its website for a database that allows a person to register a relative who has a compulsive borrowing problem.

This database is called the Do Not Lend (DNL) directory, and is available to all licensed money lenders in Singapore who are members of the CAS.

For a complete understanding of how to ban someone from money lender  in Singapore, you should note that the DNL directory is not available to unlicensed or blacklisted money lenders in Singapore.

The registration process starts with an online application on the CAS website, followed by the submission of supporting documents through the post or via email.

Documents Required To Ban Someone From Taking A Loan

The next step of how to ban someone from money lender is to prepare the documents required.

You will need to provide the following:

  • Front and back photocopies of the requesting person’s NRIC
  • Proof of a close family relationship, such as a marriage certificate (for a spouse) or a birth certificate (for a child)
  • A crossed cheque of $50 made out to “Moneylender’s Association of Singapore”.
  • A personal explanation in the form of a cover letter (that includes your full name and contact details) describing why the named individual should be added to the DNL directory

Once you’ve prepared the above documents and submitted your online request, you can send the supporting documents by post to this address:

Moneylender’s Association of Singapore

501 Balestier Road #02-03A Wai Wing Center

Singapore 328844

What The MLCB Self-Exclusion Listing Is About And Who Can Apply

In addition to the DNL directory created by the CAS, the Moneylenders Credit Bureau (MLCB) also provides an option for self-exclusion from loans.

The MLCB is an organisation in Singapore that functions as a data repository of the activities of legal money lenders in Singapore with regard to applications for loans and records of repayment.

The MLCB self-exclusion listing is a service that provides a person with an opportunity to remove his or her eligibility of receiving unsecured personal loans (with the exception of loans for debt-consolidation) from licensed money lenders in Singapore.

The authorisation form must be filled up by an individual on a completely voluntary basis. If an application is later found to have been completed without voluntary consent, it is likely to be voided.

You can submit a self-exclusion request to the MLCB website using your Singpass.

If you don’t have Singpass but know someone who does, you can ask that person to register with the MLCB on your behalf.

Before authorising someone to submit something online, make sure he or she has the necessary documents to upload.

You have to submit a signed Self-Exclusion Listing registration or withdrawal authorisation form, as well as proof that you are the excluded individual.

In the case of third-party registrations, the exclusion will not take effect until the MLCB has verified the supporting documents.

It will then notify you and the authorised person via email about the status of the registration.

The Moneylenders Credit Bureau self-exclusion listing service is a useful tool for those determined to recover from the habit of compulsive borrowing.

How To Register For A Self-Exclusion Listing

For those who are advising a friend or relative on how to ban someone from money lender, or making the effort on their own, there are two ways to register for the MLCB self-exclusion listing:

  • Visit the MLCB website and use your Singpass to register for self-exclusion. A $3 fee applies (also applicable for withdrawal).
  • For those without a Singpass, including foreigners, visit the MLCB Bureau office and register in person with the help of an authorised representative. A $5 fee applies (also applicable for withdrawal).

Effective Period Of Self-Exclusion

The minimum period of self-exclusion for those who opted for the MLCB self-exclusion listing is either one or two years for Singaporeans and permanent residents. For non-citizens, the minimum period of self-exclusion is two years.

Once the relevant minimum period of self-exclusion has been chosen, the self-exclusion will remain valid until withdrawal.

How To Verify If You Have Been Excluded

It’s fairly straightforward to verify if the MLCB self-exclusion listing was done successfully. You just need to request for your MLCB Loan Information Report.

This MLCB report will clearly show your self-exclusion listing status and the minimum period of self-exclusion.

This report will almost certainly be visible by a licensed money lender in Singapore when checking your credit history.

If you try to borrow again, your self-exclusion listing will be flagged and you will be stopped from accessing a loan.

Borrow Responsibly From The Right Lender

Professional and experienced, GS Credit is a reputable licensed and legal money lender in Singapore.

We are a fully accredited member of the Registry of Moneylenders.

Now that you know how to ban someone from money lender, you can protect a family member from compulsive borrowing. You have also learnt about MLCB’s Self-Exclusion Listing function.

But if you should ever require a loan for any reason, including debt consolidation or marriage, feel free to reach out to us.

We pride ourselves on the speed and professionalism of our interaction with our customers. We can process your loan application within an hour and offer same-day disbursement.

Contact GS Credit now or apply for a loan with us today.

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