When someone takes a loan from a money lender, it can affect them and his or her loved ones.

If things go awry, the family may have to chip in to clear the debts. Unfortunately, some relatives have bad borrowing habits that leave their loved ones in huge debts.

How do you deal with such a person?

This article will teach you how to ban someone from a money lender, the documents you require, and the charges.

How MLAS Offers Protection From Loans 

The Moneylender’s Association of Singapore (MLAS) has a social responsibility to protect the public from unhealthy borrowing behaviours.

It provides a feature on its official website for members of the public to make applications to money lenders to turn down a loan request made by their relatives or loved ones.

So if your parent or sibling has an irresponsible borrowing habit, you can visit MLAS’ official website and submit such a request.

Doing so can protect your family from debts that can leave you bankrupt.

It is essential to note that the Do Not Lend (DNL) feature acts as a point of reference for MLAS members when considering loan applications.

Therefore, licensed money lenders are not bound to it and can grant a loan to a person even if they are in the DNL Directory.

However, MLAS encourages its members not to lend to anyone on this registry.

Also, the DNL is accessible to registered members of the MLAS only. Therefore, any legal money lender that is not a member cannot access it.

When To Ban Your Loved One From Taking A Loan 

Before you know how to ban someone from a money lender, you need to know when to do so. It may become necessary to take action in these instances.

Bad Borrowing Behaviour

Taking out a loan from a licensed money lender in Singapore is a perfect solution when you want to renovate your house or pay a medical bill.

Therefore, when you take a loan, you must have a goal you want to achieve. This is because a loan is not free money – you should repay the loan as agreed with the lender.

However, you may sometimes find that those around you are borrowing right, left, and centre without any plan.

And to make it worse, their income is quite comfortable, so there is no need to borrow.

In such a situation, you can take the step of banning them from borrowing from money lenders. It will prevent more damage from happening.

Unable To Repay Their Loans

When someone takes out a loan from licensed money lenders, it is his or her responsibility to settle the debt.

The person should make their monthly instalment as agreed with the lender without defaulting.

However, if the person borrows and the burden of debt is left to the family to settle, it would be good to block him or her from taking other loans.

This is because it can damage relationships among relatives.

The situation becomes more challenging to the family if the person is dealing with blacklisted money lenders in Singapore.

The interest and fees are higher than that of licensed money lenders, resulting in lump sum debts.

The family may even face harassment from debt collectors because illegal money lenders are not regulated in Singapore.

They Are Addicted To Gambling 

Gambling is meant for fun, and one should know when to stop.

A gambler can set a daily, weekly, or monthly amount to use at a casino to avoid bankruptcy.

Unfortunately, some of your family members can be overtaken by gambling. They may use all their income and take loans to support their addiction.

Some may even resort to borrowing from blacklisted money lenders in Singapore to get money for spinning the wheels.

In such a scenario, you can ban your family members from taking a loan from a licensed money lender.

This is because they can keep borrowing and losing at the casino. As a result, they will not be able to settle their debts.

Documents Required To Ban Someone From Taking A Loan

Providing the required documents is one of the steps of how to ban someone from a money lender. You will need to provide:

The Individual’s Identification Card

You should provide a photocopied letter requesting your loved one to provide his or her NRIC. Clarify that you need the front and back of the NRIC.

Proof Of Relationship

Another document required is proof of the relationship between you and the person you want to ban from borrowing.

For example, if you’re going to block your parent or child, you can give a birth certificate; or a marriage certificate if it is your spouse.

Payment Proof

The MLAS charges for the banning process. Send a crossed cheque worth $50 to the MLAS.

Cover Letter

The last document required is a cover letter explaining why you want your loved one in the DNL Directory.

You should include their full name and contact details (email and mobile number).

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

The Moneylenders Credit Bureau (MLCB) self-exclusion is a service offered to borrowers in Singapore to voluntarily excuse themselves from taking unsecured loans from legal money lenders.

However, they can apply for debt consolidation loans.

When you apply for self-exclusion, you can still borrow secured loans from legal money lenders. For example, you can apply for an auto or mortgage loan.

The service became effective on 15 Jul 2019, allowing individuals and third parties to apply through the MLCB.

Once you apply for this listing, you cannot borrow money from licensed money lenders for a period.

Third parties such as employers can apply for self-exclusion listing on behalf of their foreign domestic workers (FDWs) . However, according to the Ministry of Law, they should do so with the individual’s consent.

So who can apply for the self-exclusion listing in Singapore?

The service is available to Singapore citizens, Singapore permanent residents, foreign workers, and FDWs.

How To Apply For The Self-Exclusion Listing 

The application process is fast and straightforward.

If you are a Singaporean, Singapore permanent resident, or a foreigner with a valid Singpass, log in to MLCB’s website.

Then select the period you want to exclude yourself from borrowing from money lenders.

Also, you have to provide the relevant documents. These include:

• The MLCB application –You must fill all the sections in this form. It requires details of the registrant (full name, contact, mobile number, and email address) and the authorised person (this should be the same person who is applying)
• Identity proof – You can provide your NRIC or passport
• A fee of $3 if you are doing self-registration
• A fee of $5 if you are a third party (employer or employment agency)

The worker, or an employer or employment agency can pay the registration fee. There are no other processing costs required for the success of the self-exclusion listing.

Foreigners without a Singpass can walk into the MLCB office to apply in person with their identification documents.

They can also authorise someone with a valid Singpass to register on their behalf. The following will be required during the online registration process:

• Application form: Fill up all the sections, including the “Authorisation to apply on behalf” section.
• Document to prove the relationship between the foreigner and the authorised party
• Registration fee of $3 or $5

After uploading the required documents, the MLCB will go through them for verification purposes.

Effective Period Of Self-Exclusion

When applying for a self-exclusion listing, Singapore citizens and permanent residents can choose a minimum period of one or two years.

If you are a foreigner, the minimum period is two years.

During this period, the person excluded cannot borrow unsecured loans from licensed money lenders.

This includes wedding loans, renovation loans, medical loans, and education loans.

However, if you have several loans from licensed money lenders, you can get a debt consolidation loan.

Costs Of The Self-Exclusion Listing

If you want to apply or withdraw from the self-exclusion listing in Singapore, the cost is $1.50 when you have a valid Singpass.

If you are a foreigner without a Singpass, you will pay $2.60.

Both fees are inclusive of GST. A third party applying on your behalf shouldn’t collect any other fee.

How To Verify If You Have Been Excluded

If you applied to be excluded from borrowing in Singapore, you can verify if the process was successful.

The verification process is smooth with the help of the Moneylenders Credit Bureau.

All you need to do is to get a copy of your MLCB report, which will show your status on the self-exclusion listing. It will also reveal the period you have been excluded.

The MLCB report summarises all your active loans as reported by licensed money lenders in Singapore.

Apart from your self-exclusion listing status, it also shows your repayment history and outstanding loan balances.

You can purchase a copy of your report online via the MLCB’s official website. You can also visit its office at Shenton Way for direct purchase. Walk-in purchases are made via cash only.

How To Withdraw From The Self-Exclusion Listing 

You can withdraw from the self-exclusion listing.

However, this is only possible after your minimum period of exclusion expires. The Moneylenders Credit Bureau does not allow earlier withdrawal.

To cancel the registration, you need to visit the MLCB official website if you have a valid Singpass.

Also, you will need to provide the documents you provided during the registration. These include;

• The application form
• Proof of identity
• A fee of $3 for self-registration or $5 for an employer or employment agency registration

Foreigners without Singpass can visit the MLCB office with their identification documents to withdraw from the self-exclusion listing.

They can also authorise another person with a valid Singpass to withdraw on their behalf. The following will be required:

• Application form: Fill up all the sections, including the “Authorisation to apply on behalf” section.
• Document to prove the relationship between the foreigner and the authorised party
• Fee of $3 or $5

There Are Measures To Protect Borrowers 

Borrowing from licensed money lenders in Singapore is safe as the Ministry of Law regulates them.

But remember that when you take out a loan, it also affects your family.

If your loved one is an addicted gambler, has bad borrowing habits, or unable to settle his or her debts, ban him or her from taking up more loans.

You can find out how to ban someone from a money lender through the MLAS’ DNL Directory.

If you need to, you can choose to apply for the self-exclusion listing provided by the MLCB using your Singpass.

Once you’re on the list, you cannot apply for unsecured loans for a minimum of one to two years. If you don’t have a Singpass, you can authorise someone to register on your behalf.

If you have a problematic relative who keeps borrowing and it is affecting your family, you can visit BST Credit.

We are a licensed money lender that provides debt consolidation loans and other loan types that can help to ease the burden of repaying.

Contact us now or apply for a loan today.