Singapore legislation
Section 32
Section 32
Licensees to inform borrowers of terms of loan
(1)
Every licensee must, before granting any loan to a borrower, inform the borrower in writing as to such matters relating to the terms and conditions of the loan as may be prescribed.
(2)
The licensee must cause the written information provided to the borrower under subsection (1) to be signed by the borrower or the borrower’s agent together with a written acknowledgment by the borrower or the borrower’s agent (as the case may be) that the borrower has been informed by the licensee of the terms and conditions of the loan.
(3)
Where any loan has been granted in contravention of subsection (1) or (2), the licensee is not entitled to enforce —
the payment of all sums of interest, late interest and permitted fees payable under the contract for the loan, whether by the borrower or any surety; or
any guarantee or security given for the loan to recover any such sum.
(4)
For the purposes of subsection (3), if any amount of interest, late interest or permitted fees has been paid, it is recoverable as a debt due to the borrower or surety (as the case may be) and if not recovered, is to be set off against the outstanding amount of the loan.
(5)
Any licensee who contravenes subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 or to imprisonment for a term not exceeding 6 months or to both.[19