Errant licensed moneylender fined $18,000

Errant licensed moneylender fined $18,000

SINGAPORE - A licensed moneylender, Cheng Hwang Teck, pleaded guilty on Monday to various breaches of the Moneylenders Act.

Cheng, 36, who is the sole proprietor of moneylending business, A8 Credit, was convicted on 7 out of 20 charges. The charges was brought against him by the Registry of Moneylenders on Sep 16, 2013.

5 charges were for granting loans without the borrowers having first applied to the licensee in writing for the loans. 2 charges were for failure to obtain borrowers' signatures for receipts of cash repayments. The remaining 13 charges were taken into consideration by the Court for sentencing.

If Cheng is unable to pay the fine, he faces a jail term of 41 days in lieu of the fine. 

He will also be required to show cause to the Registrar as to why his licence should not be revoked and his security deposit forfeited. 

18 licensed moneylenders have been convicted and fined since 2011.

Those convicted of breaches of the Moneylenders Act and Rules face a fine of up to $40,000 and/or a jail term of up to two years on each charge.

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