Discovering that your Migrant Domestic Worker (MDW) has borrowed money from loan sharks can be alarming. However, it’s crucial to remain calm and take the right steps to protect both yourself and your helper. If you found out your MDW is involved in loan sharks borrowings, DO NOT PANIC! You are not liable to pay for any loans taken by your MDW. Some MDWs are unaware of how loan sharks in Singapore operate hence they may borrow from multiple loan sharks. Here’s how you can handle the situation responsibly and prevent future financial risks.
1. Stay Calm and Assess the Situation
If you find out your MDW is involved with loan sharks, do not panic. You are not legally responsible for any debt they have taken on. Many MDWs may unknowingly fall victim to unlicensed money lenders (UMLs) without understanding the risks.
Start by gathering key information:
- Total loan amount: How much has she borrowed?
- Number of lenders: How many loan sharks are involved?
- Interest rate: What are the repayment terms?
- Repayment progress: How much has been paid, and what remains?
- Reason for borrowing: Why did she take the loan in the first place?
Understanding these details will help you determine the best course of action.
2. Identify the Loan Sharks and Take Immediate Action
Loan sharks often use intimidation tactics, including harassment and threats. If you or your MDW experience such actions, take the following steps:
- Notify the police by calling 999 or reporting via i-Witness.
- Block and report spam numbers using call-filtering applications.
- Contact the National Crime Prevention Council’s X-Ah Long hotline at 1800-924-5564 for further guidance.
Taking these measures will help prevent further harassment and ensure the authorities are aware of the situation.
3. Decide Whether to Retain or Send Your MDW Home
Once you’ve assessed the situation, you must decide how to move forward. You have two primary options:
- Support your MDW through this challenge, providing guidance and financial awareness to prevent future incidents.
- Terminate her work permit and arrange for her to return home if the issue escalates beyond control.
4. Educate and Protect Your MDW from Future Loan Sharks
Once you have accessed the situation, you may choose to keep your MDW and go through this challenging situation with her or you may choose to terminate the work permit and send her home.
You can protect your MDW from falling prey by constantly communicating with them to make sure she knows the consequences of borrowing from Unlicensed Money Lenders (UML). Preventive education is crucial to ensuring that your MDW does not fall into similar traps in the future. Here’s how you can help:
- Educate them on the risks of UMLs and the consequences of illegal borrowing.
- Encourage open communication so they feel safe discussing financial issues.
- Guide them toward legal or financial aid, such as National Council on Problem Gambling: 1800-6-668-668 (www.ncpg.org.sg), Credit Counselling Singapore: 6225-5227 (www.ccs.org.sg) or ComCare: 1800-222-0000 (www.msf.gov.sg/comcare).
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