Moneylenders Act 2008 · 2020 Revised Edition · Part 3 · Regulation of Business of Moneylending, Enforcement and Proceedings
35. Charges other than permitted fees unenforceable
Feedback & supportLast amended by an amending law of 2023. 2 amendments in all.
The Minister may prescribe the types or amounts of costs, charges and expenses that a licensee may impose in respect of every loan granted by the licensee, including the fees or charges for or on account of legal costs.
For the purposes of subsection (1), the Minister may prescribe different types or amounts of costs, charges and expenses that a licensee may impose —
on different classes or descriptions of borrowers; and
in relation to different classes or descriptions of loans.
Where, under any contract for a loan between a licensee and a borrower, the borrower is required to pay to the licensee any sum (not being a sum for or on account of stamp duties or fees payable by or under this Act or any other written law) on account of costs, charges or expenses other than or in excess of the permitted fees, the sum —
is not recoverable from the borrower or any surety;
if so paid, 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, and all sums of interest, late interest and permitted fees payable under the contract for the loan.
A licensee shall be guilty of an offence if the licensee enters into a contract for a loan under which the borrower is required to pay any sum (not being a sum for or on account of stamp duties or fees payable by or under this Act or any other written law) on account of costs, charges or expenses other than or in excess of the permitted fees.
A licensee shall be guilty of an offence if the licensee, without reasonable excuse, demands payment from a borrower of any sum (not being a sum for or on account of stamp duties or fees payable by or under this Act or any other written law) on account of costs, charges or expenses other than or in excess of the permitted fees.
A licensee who is guilty of an offence under subsection (4) or (4A) 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.[22