Resource Credit found guilty of contravening Moneylender Rules
Resource Credit was recently found guilty by Justice Tan Siong Thye of contravening the government’s Moneylender Rules and Regulations. Resource Credit attempted to charge $196,000 in administrative fees on a $128,000 principal loan amount, a clear violation of the rules which state that “moneylenders cannot recover from borrowers any interest or fees exceeding the principal amount.” Furthermore, Justice Tan Siong Thye found that Resource Credit that Resource Credit violated the Moneylenders Act by charging interest under the guise of administrative fees for loan refinancing that exceeded the limits allowed by law. Justice Tan Sion Thye stated: “The loan transactions as a whole are unconscionable and substantially unfair to the plaintiff.”
Read more about this case in the Strait’s Times. Always be wary about which moneylenders you choose to borrow from and be sure to check previous customer experiences before making a final decision.