How To Keep My Maid Away From Moneylenders?

Being drawn by by the easy access to borrowing, there has been an increase in Foreign Workers and Migrant Domestic Workers (Maids) borrowing money from both Licensed and Unlicensed moneylenders. What they don't tell you is that such borrowing comes with a heavy cost and implications for the borrowers. We explore ways you can help your Maid stay cleer from Moneylenders. 

Moneylending Measures Announced

On 15 July 2019, the Ministry of Law (MinLaw) announced new measures to stem the increase in moneylending activities targeting foreigners (work pass holders) which includes Maids or Migrant Domestic Workers (MDWs).
 

Borrowing Capped at $500

Educating Maids on Money Management

Both the Employment Agency and Employers of Migrant Domestic Workers has a role to play in educating the MDWs on the need for proper money management.

1. Advocate Proper Money Management
   To secure their financial well-being we should help them understand through constant education and reminders that is imperative that they spend wisely and save consistently to build a safety net for unexpected emergencies. Employers can also have conversations with their Domestic Helpers, to find out more about their financial situation at home and assess if they are at risk to borrowing. If need be, they can recommend their Domestic Helper to seek professional help to plan their finances accordingly.
    
2. Borrowing Money Comes with a Hefty Price Tag
   Borrowing money should be avoided at all costs as it comes with a hefty price tag. For instance, borrowing just $500 from a licensed moneylender could result in paying up to $500 in interest and other fees.
    
3. Maids Must Steer Clear of Unlicensed Moneylenders & Their Activities
   It is essential to educate Domestic Helpers on how to recognize and disregard offers from unlicensed moneylenders, especially through social media, phone calls, or text messages. It is crucial to warn Domestic Helpers that associating with unlicensed moneylenders can lead to severe consequences, including being barred from employment in Singapore.
    
4. Seek Assistance if Struggling with Debt
   Encourage workers to seek assistance from Voluntary Welfare Organisations (VWOs), the Migrant Workers’ Centre, or the Centre for Domestic Employees if they are struggling with debt. These organizations can provide valuable support and guidance to help workers overcome their financial challenges.

5. Apply For Self-Exclusion from Borrowing From Licensed Moneylenders
   Inform workers about the new self-exclusion facility by MinLaw and guide them through the process of opting for it. This facility can assist in managing their finances effectively and preventing further indebtedness. This proactive step can safeguard workers from falling into a cycle of debt and financial instability.

 

How Can Maids Apply For Self-Exclusions From Moneylending?

1. Self-Exclusion is voluntary. Once a maid signs up, she is committing to refrain from borrowing from licensed moneylenders in Singapore for a minimum of 2 years, with no option to lift the exclusion even in urgent situations.
    
2. Your Maid will require a SingPass ID to apply for self-exclusion. Alternatively, you can help her apply by using your SingPass as a third party.
    
3. Download the Authorisation Form for your Maid to sign and declare that she understands the implications of self-exclusion.
    
4. Once done, you can submit the application at: https://www.mlcb.com.sg/exclusion.html
    
5. Registration Fee
   SGD $3 for Self Registration
   SGD $5 for Registration by Employer
    

Need Further Advise On Hiring A Maid?

Prevention is always better than cure. Island Maids hope you find this guide useful in educating your Domestic Helper in financial management and the pitfalls of moneylending.

Should you require any of our Maid Services, free to visit any of our 9 Branch Offices or contact us at https://www.islandmaids.com.sg/ContactUs.