Protection from Illegal Moneylenders for Buyers of Resale Flats

Dr Intan Azura Mokhtar asked the Minister for National Development what can be done to protect resale flat buyers from bearing the brunt of illegal moneylenders that the flat sellers were involved with and where these sellers made use of the opportunity to borrow from these illegal moneylenders just before selling their flats.

Mr Khaw Boon Wan: Addressing the problem of a person using a false HDB address or an outdated HDB address to borrow from a loanshark requires cooperation from many parties.

First, the National Registration Act requires Singapore residents to report their change of address to the Police or the Immigration and Checkpoints Authority (ICA) within 28 days. Failure to do so is an offence and punishable by a fine or imprisonment, or both.

Second, the Moneylenders Act makes it an offence for borrowers who deliberately provide false addresses. They may face imprisonment for up to a year.

Third, HDB requires all flat sellers to provide a valid forwarding address. HDB also requires lessees who sublet bedrooms or whole flat to register their subtenants with HDB. These two measures have enabled the ICA and the Police to follow up on cases where identity card holders fail to register a change in address, or to trace individuals involved in illegal borrowing using their former address.

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These measures cannot completely eliminate the problem as there will be some who choose to flout the law. Flat owners who face harassment by loansharks should make a police report immediately. The Police will work with them to implement measures to deter further harassment. These measures include increasing police patrols in the neighbourhood and working with the community to form Neighbourhood Watch Groups to keep a look out for suspicious activity at the block.