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Sunday April 14th 2019

Loan of $2000 taken with licensed moneylender ballooned to $5000 with late payment fee

Dear Mr Gilbert Goh,

My name is S desperately looking for help. In brief, I felt being cheated by the moneylender on 3 occasions with the 1st contract for a sum of $ 2000 for weekly instalment, and I paid a sum of my instalment, unable to keep up with the instalment and similar to the 2nd one.

The 1st and 2nd contract have been close without any offsetting of whatever paid to them earlier from the principle loan. The principle loan from 1st to 2nd continued with the 3rd contract and with interest the total amount payable is $ 5000 for $ 200 x 25mths (inclusive of default with interest).

Attach herewith, the moneylender claimed the loan has been repaid but without any notifications of the default payment made known to me, they have kept quiet about the default in payment for a few days has been accumulated to $ 2750. I am under the impression that the delay is accepted in mutual respect.

In general, now they want me to pay the late fee amount the second time for $ 2750.

MLAS is not much of a help here.

I cannot afford a lawyer and did approach the Legal Aid and pro bono office to handle my case but sought in vain.

In Singapore, we have all kind of assistance but this does not reach out to it people at all.

Sir, I place both my hands to you for help and advice.

Thank you




Dear S

Firstly, I appreciate your patience in giving me time to investigate this matter.

The letter of demand that you received dated XXX was printed with the incorrect outstanding amount due to a system error. I sincerely apologize for this system error that may had cause some alarm to you. I have attached a copy of the Statement of Account as well as the Letter of Demand reflecting the correct outstanding amount.

The Loan account AP XXX that was issued to you  was for a principle amount of $2000.00. The payment was due  for a amount of $2000.20 (Interest for the loan is $0.20) The Late fee chargeable for late payment is $5000.00.

After you had default your payment, Miss Foo from ABC Life Counselling approached us and negotiated for a repayment plan in order for you to clear your outstanding loan with us. The repayment plan that she proposed and was accepted by us, was for $200.00 on every 30th of the month till a total amount of $5000.00 was repaid.

The payments that you had made so far is reflected on the Statement of Account.

I hope this addresses your query.


XXX Credit

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One Response to “Loan of $2000 taken with licensed moneylender ballooned to $5000 with late payment fee”

  1. Jie Ming says:


    Understand how much stress you have got into by the money you borrowed. I doubted anyone can help you except your family members or relatives. I see your letter serves as a positive reminder to all the readers not to borrow unnecessary. There are plenty of reasons for someone to go to the money lenders. It could be money required urgently to settle another loan, serve their gambling habits or even to provide food on the table. No one knows except the borrowers, themselves.

    If you are able to get off from this stress in near future, kindly refrain from borrowing money. Try to cut down on your overspending or expenses. No matter how much our salaries are, there are always a way to save and spend wisely. Good luck.

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