Licensed moneylenders rush to join credit bureau

Straits Times

15 June, 2011

MORE than 200 licensed moneylenders have joined one of Singapore’s main credit bureaus in the past 12 months.

The rush to join has made moneylenders the fastest group of new members at credit information supplier DP SME Commercial Credit Bureau.

There are about 265 licensed moneylenders in Singapore, up from 260 last year, so the membership numbers imply that most have joined the bureau.

Lenders also utilise the services of other data providers like Dun & Bradstreet.

‘Where an applicant for unsecured credit has a history of defaulting on debts, or has recently started missing payments, it sends a clear signal that the moneylender needs to exercise caution,’ Ms Ong noted.

‘The final decision… still rests with the lender, but the credit checks allow them to make a more informed decision.’

Mr Leong Sze Hian, a past president of the Society of Financial Service Professionals, said that ‘for moneylenders, having the database will help them screen out the bad borrowers’.

About the Author

Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.