There may be a loved one in your life who has developed a form of compulsive borrowing behaviour – in simple terms, an addiction.

Now, you need to help him or her on the path back to recovery.

Unfortunately, your loved one may still try to continue the addiction cycle by looking for a money lender that is willing to loan them money – licensed or not.

Before your loved one plunges further into a neverending debt cycle, you need to stop them from getting any more loans.

The best way is for you to ban him or her from doing so.

This article will talk about the best way of how to ban someone from money lender, as well as why and when you should take this step.

When To Ban Your Loved One From Taking A Loan

When should you take action to help someone suffering from compulsive borrowing? The answer is simple: When it becomes clear that the person will not – or cannot – stop whatever behaviour that is ruining his or her life.

What’s the best way to respond? Sometimes, you must be cruel to be kind.

That means stopping the borrowing addict from getting access to the money that he or she needs to keep the addiction cycle going.

In other words, the person must be prevented from dealing with a money lender. You need to ban him or her from doing so.

If you don’t, your loved one will borrow from friends, family, the banks, local pawnshops, licensed money lenders, and will even approach loan sharks when they have no other option.

So a complete ban on such a person from taking out a loan is the kindest thing to do.

Because licensed money lenders in Singapore are so easy for an addict to find, it’s important to know how to ban someone from money lender when required.

Ethical Values Of The MLAS

The Moneylender’s Association of Singapore (MLAS), rebranded itself as the Credit Association of Singapore (CAS) some time ago.

One of the primary goals of the CAS as stated on the website is their desire to make moneylending practices in Singapore ethical and responsible, as evidenced by its motto “Integrity Above All”.

In line with these core values, the CAS has assumed the responsibility of encouraging socially responsible standards in the Singapore moneylending industry.

It has implemented a feature on its website that allows individuals to register their family members who suffer from compulsive borrowing, and who should not be trusted with a loan.

How MLAS Offers Protection From Loans

The CAS has a Do Not Lend (DNL) directory, which is available to all legal money lenders in Singapore that are CAS members.

If you are wondering how to ban someone from money lender in Singapore, you should be aware that the DNL directory cannot be accessed by unlicensed or blacklisted money lenders in Singapore.

Registration begins with an application on the CAS website, which is then followed by the submission of paper documents to support the application via the post or email.

Documents Required To Ban Someone From Taking A Loan

The next stage on how to ban someone from money lender is preparing the necessary documents for submission to the DNL directory.

These include:

1. Official proof, such as a marriage certificate (for a spouse) or a birth certificate (for a child) of a genuine family relationship
2. Front and back photocopies of the requesting person’s NRIC
3. A crossed cheque of $50 made out to the “Moneylender’s Association of Singapore”
4. A cover letter with your name and contact details that explains why the particular individual should be added to the DNL directory

Once these documents are ready, submit your request online. Next, send the documents by mail to:

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

Apart from the DNL directory created by the CAS, the Moneylenders Credit Bureau (MLCB) also has a way for borrowers to self-exclude themselves from being granted loans.

The Moneylenders Credit Bureau is an organisation that serves as a data repository of the financial activities of the legal money lenders in Singapore regarding applications for loans and repayment records.

The MLCB self-exclusion listing gives individuals the opportunity to remove their chance to receive unsecured personal loans (except loans for debt consolidation) from legal and licensed money lenders in Singapore.

A third party is not allowed to exclude another individual. The authorisation form must be completed by the individual on a completely voluntary basis.

If the application is later discovered to have been completed without voluntary consent, it will be voided.

How To Register For A Self-Exclusion Listing

You can submit a self-exclusion request to the MLCB website using your Singpass. A $3 fee applies (also applicable for withdrawal).

If you don’t have Singpass but know someone who does, you can ask him or her to register with the MLCB on your behalf. A $5 fee applies (also applicable for withdrawal).

Foreigners who don’t have Singpass can also go to the MLCB office and register in person.

Before authorising someone to submit something online, ensure the necessary documents are ready for uploading.

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

For third-party registrations, the exclusion can only take effect when the MLCB has verified the supporting documents.

After which, you and the authorised person will be informed by email about the status of the registration.

Effective Period Of Self-Exclusion

The minimum period of self-exclusion for the MLCB self-exclusion listing is either a one- or two-year minimum exclusion period for Singaporeans and permanent residents.

Foreigners have a two-year minimum period of self-exclusion.

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

How To Verify If You Have Been Excluded

It is easy to verify if your application for the MLCB self-exclusion listing is successful. All you have to do is request for your MLCB Loan Information Report.

The MLCB report will display the self-exclusion listing status clearly, along with the minimum period of self-exclusion.

The MLCB report will likely be checked by your licensed money lender in Singapore when examining your credit record.

If you’ve suffered a small lapse in judgment and again try applying for money that you don’t need, the report will flag your self-exclusion. You will be prevented from accessing a loan for the wrong purposes.

There Are Various Measures That Protect Borrowers

In short, the MLCB self-exclusion listing service is a useful tool for those who need to kick the habit of compulsive borrowing urgently.

Now that you know how to ban someone from money lender, you can now act in an informed way to help a loved one in difficulty.

Horison Credit is a market leader among licensed money lenders in Singapore.

Guided by the rules in the Moneylenders Act, our sense of social responsibility is critical to how we operate, as is our integrity and code of ethics.

We provide loans for any purpose, such as fast cash, business, or personal loans, and ensure that our clients borrow responsibly.

We take pride in responding to your enquiry with the speed and efficiency that you deserve as our customer.

Get in touch with us now to discuss the solution to your financial issues or apply for a loan today.