Since 2017, housemaids in Singapore have been taking up huge loan amounts from licensed money lenders and this had become a major issue. It is especially worrying for employers and their families as their housemaids would be faced with huge stress from licensed money lenders once they are unable to pay on time.
Fortunately, the Singaporean government had decided to step-up to tackle this issue. Effective on 16 July 2019, a self-exclusion framework would be put into effect for foreigners including maids to exclude themselves from borrowing from licensed money lenders. With this, employers can apply for their housemaids as third parties to be included in the “framework” (with consent from the housemaid, of course.)
This “framework” is nothing new. There is an existing self-exclusion framework that prevents foreigners in the list to visit the casino. The new “framework” would effectively STOP all licensed money lenders in Singapore from approving any loans (except debt consolidation loans) to those listed in the “framework”.
Applying for the framework: A step-by-step Guide
Before anything else, you must first GET CONSENT from your maid. Only if your maid agrees to be included in the “framework” then you could apply for her as a third party. Once you get consent, you could follow these steps:
Step 1: Prepare the following documents
i) Self-Exclusion Listing Registration Authorization Form
-click on this site to download the form
-remember to fill up all of the sections, including “apply on behalf” section
ii) An identity document of your housemaid
Step 2: Login to the Credit Bureau Website for Registration
i) Enter the MoneyLender Credit Bereau Website
ii) Click the “Public” button
iii) Click the “Self-Exclusion Listing” button
iv) Login using your Singpass
[caption id="attachment_1404172" align="aligncenter" width="606"] Figure 1: Self-Exclusion Button[/caption]
Step 3: Click “On Behalf” Button
[caption id="attachment_1404171" align="aligncenter" width="519"] Figure 2: "On Behalf Button"[/caption]
Step 4: Click on “New” Button
[caption id="attachment_1404170" align="aligncenter" width="547"] Figure 3: "New" Button[/caption]
Step 5: Fill up all the details in the form
[caption id="attachment_1404169" align="aligncenter" width="422"] Figure 4: Self-Exclusion Framework Application Form[/caption]
You have to fill up all the required details. Also, upload the previous two documents that you have prepared in Step 1.
Step 6: Make Your Payment
You would have to pay $5 per registration. This includes the GST amount.
Step 7: Registration Completed!
After payment, you would receive an email notification as soon as the Bureau had verified all the documents required. With this, you do not have to worry that your maid would borrow from any licensed money lenders in Singapore!
FAQs
1) How long would your maid be in the self-exclusion framework?
- She would be listed under the framework for a minimum of 2 years. Your maid would have to manually withdraw from the self-exclusion framework once the 2-year period expires or else it would continue to be in effect.
2) Who would receive notification emails after submission?
- Both the authorized person and your maid would receive emails once the Moneylenders Credit Bureau had verified all the supporting documents.
3) What if the application is unsuccessful?
- Both the authorized person and your maid would receive emails noting that the application had failed. With this, you have to resubmit the right documents again within 30 days.
Consider this….
While it may sound like a good idea to apply for the self-exclusion framework for your maid, preventing from borrowing money through legal channels like licensed money lenders would only make them more desperate. In such a scenario, some of them may resort to loan sharks instead!
Therefore, we would advise you to be open with your maid. Always ensure that they are not hiding any financial problems. Sometimes, the financial problems they face may or may not be due to their fault. It is best to discuss with them thoroughly and keep an eye on their social circle!
This article was contributed by Zac Lim who runs LoanGuide.sg, an online directory that compares loans from different loan providers in Singapore. This site also provides useful advise and insights for those who are seeking to apply for personal and business loans in Singapore.
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