Errant Licensed Moneylender, CYS Credit Pte Ltd, Fined $22,500

10 Apr 2018 Posted in Press releases

1. The Registry of Moneylenders (“Registry”), a department under the Ministry of Law, brought charges in the State Courts on 8 January 2018 against CYS Credit Pte Ltd, a moneylending company.

2. CYS Credit Pte Ltd held a moneylending licence since 2 December 2009. The licence will not be renewed after it expires on 30 April 2018.

3. On 9 April 2018, the company pleaded guilty in the State Courts and was convicted on nine out of twenty- seven charges for offences under Rule 9(4)(b) read with Rule 9(3) of the Moneylenders Rules 2009 for having failed to extend a copy of the duly completed loan application form to borrowers at the time the loans were granted.

4. CYS Credit Pte Ltd was sentenced in the State Courts to a total fine of $22,500.

5. Forty-five licensed moneylenders or their officers have been convicted and fined for offences under the Moneylenders Act since 2011 (see Annex).

6. Conduct that is consistent with the Moneylenders Act and Rules (“MLA/R”) ensures that loan agreements are entered into in a proper and transparent manner. This protects the interest of both borrowers and licensed moneylenders. The duties to extend the duly completed application form, note of contract containing all terms and conditions, official receipt for cash payment, etc., are prescribed in the MLA/R to achieve this. The Registry reminds all licensed moneylenders to adhere to these requirements at all times.

7. The Registry carries out regular inspections on licensed moneylenders. Where breaches of moneylending laws are found, enforcement measures are taken, including the suspension or revocation of licences, forfeiture of security deposits, warnings and prosecutions. Those convicted of breaches of the MLA/R face a fine of up to $40,000 and/or an imprisonment term of up to two years on each charge.

Annex

List of past convictions since 2011

Last updated on 24 May 2018