When people are faced with financial crisis, they would look to a moneylender for help. However, there are many unlicensed and untrustworthy moneylenders out there who are only looking to exploit people. As such, it is important for people to know about legal moneylender before they choose one.
Moneylenders are the lifeblood of industrial-technological society, making possible entire industries such as steel, railroads, automobiles, air travel, and medical devices. Without the capital, often provided through usury, such life-enhancing industries would not exist. But why do moneylenders and their practices get such a bad rap? For millennia they have been the main scapegoats for practically every economic problem, derided by philosophers and condemned to hell by religious authorities; their property has been confiscated to compensate “victims”; and they have been abused and even killed.
To protect borrowers, the Ministry of Law sets limits on how much interest and fees a licensed moneylender can charge for unsecured loans. The total charges, including interest, upfront administrative fee and late interest, cannot exceed 4% of the principal amount borrowed. Moreover, moneylenders are also not allowed to advertise interest rates below or above 4%. In addition, a licensed moneylender should have a physical office and not conduct business through text messages or phone calls.
If you encounter a moneylender who violates the terms of their license, you can lodge a complaint with the Registry of Moneylenders. The Registry staff will investigate the case and take strict action against any errant moneylender found to be engaging in unfair practices or breaching their contract with a borrower.