Latest news with #FinancialIndustryDisputesResolutionCentre
Straits Times
30-06-2025
- Business
- Straits Times
Singapore small businesses and charities to get access to financial dispute resolution from July 1
Small businesses refer to companies registered and operating in Singapore, with group annual sales of $1 million or less in each of the past two financial years. ST PHOTO: LIM YAOHUI Singapore small businesses and charities to get access to financial dispute resolution from July 1 SINGAPORE - More than 200,000 small businesses and 2,000 charities here will be able to file complaints against licensed financial institutions to the Financial Industry Disputes Resolution Centre (Fidrec) from July 1. Small businesses refer to companies registered and operating in Singapore, with group annual sales of $1 million or less in each of the past two financial years. Fidrec, which handles consumer financial disputes, said it will also cover a wider range of claims under the expanded scope. These include disputes over employee medical insurance, insurance for company vehicles, business banking services, corporate card accounts and loan agreements. Fidrec chief executive Eunice Chua said small businesses and charities often face the same difficulties as individual consumers when dealing with financial disputes, on top of their day-to-day operations. 'Our 2024 public consultation showed strong support for making Fidrec accessible to small businesses although we delayed implementing this change to address the concerns voiced,' she said. 'This expansion is aligned with Singapore's broader push to strengthen support for small businesses and build a more resilient non-profit sector.' Mrs Ong-Ang Ai Boon, director of the Association of Banks in Singapore, said Fidrec's expansion to include small businesses and charities is a welcome move for the banking sector. 'These segments, which often rely on banking services, now have greater access to fair and independent dispute resolution, further strengthening confidence in the broader financial ecosystem,' she said. Fidrec is the only financial dispute resolution institution in Singapore, helping consumers resolve disputes with licensed financial institutions, including banks, life insurers and advisers, through mediation or adjudication. The independent body has handled over 23,000 claims since its launch in 2005. Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
30-06-2025
- Business
- Business Times
Fidrec extends jurisdiction to include claims from small businesses and charities from July
[SINGAPORE] The Financial Industry Disputes Resolution Centre (Fidrec) is extending its jurisdiction to include small businesses and charities from Tuesday (Jul 1). This comes after the organisation's 2024 public consultation displayed strong support for making it accessible to small businesses. This is aligned with Singapore's broader push to strengthen support for small businesses and build a more resilient non-profit sector. With this move, over 200,000 small businesses and 2,000 charities who have disputes arising on or after Jul 1 against licensed financial institutions subscribed to Fidrec can bring their unresolved disputes to the organisation. Fidrec will now also handle a broader range of claims which include: Disputes over employee medical insurance claims Insurance claims involving company-owned vehicles Issues with business banking services and corporate card accounts Loan agreement-related disputes Eunice Chua, chief executive officer of Fidrec, said: 'Small businesses and charities in Singapore face mounting challenges in today's volatile global economy. We recognise that managing financial disputes on top of day-to-day operations can be overwhelming, and that these organisations are akin to individual consumers in their ability to deal with financial disputes.' For the banking sector, Ong-Ang Ai Boon, director of The Association of Banks in Singapore, said that Fidrec's expansion to include small businesses and charities is 'a welcomed move.' 'These segments, which often rely on banking services, now have greater access to fair and independent dispute resolution, further strengthening confidence in the broader financial ecosystem,' she said. Fidrec's jurisdiction, including the definition of an 'eligible complainant', is governed by its Terms of Reference, as set out in section six of the Financial Services and Markets (Dispute Resolution Schemes) Regulations 2023.
New Paper
26-04-2025
- Business
- New Paper
Credit counselling agencies see more scam victims in Singapore incurring debt
When a woman whom Ali (not his real name) liked asked him to help with her part-time job, he thought he had a chance at romance. Instead, his savings were wiped out, and he is more than $25,000 in debt. Scam victims in Singapore lost a record $1.1 billion in 2024. Some victims, like Ali, do not just lose their savings, but incur mountains of debt as they try to address these losses. Non-profit organisation Credit Counselling Singapore (CCS), which typically helps people with business and credit card debt, has seen more than 200 scam victims since they started recording such cases in 2023. CCS general manager Tan Huey Min said the number of cases is rising. With 33 such victims in the first quarter of 2025 alone, there could be more than 130 cases in 2025, up from 106 in 2024, she said. Ms Tan said these victims usually fall for investment scams, where they are told to invest in schemes before they can withdraw their capital and profits. She added: "When they see their money going in and not coming out, the victim will find more money to pump in, and that's how they get into trouble." The Financial Industry Disputes Resolution Centre (Fidrec), which helps consumers resolve disputes with financial institutions, saw a rise in scam-related disputes from 325 cases in 2022 to 879 in 2024. About 3 per cent of such cases annually involve victims who incur debt with financial institutions, either by borrowing money during the scam, or by scammers taking loans in their name without their knowledge. Debt trap Ali, 40, had accepted a Facebook friend request from a woman named "Jannah" on March 30, the day before Hari Raya. The delivery driver, who is single, texted her daily. Despite never having seen her or hearing her voice, "we shared pictures of our meals, and she even said she wanted to taste my mum's cooking", said Ali. Then, "Jannah" - who claimed to be a Malaysian working in Singapore - asked Ali for financial help. All he had to do was to make "purchases" from a luxury fashion brand to boost the products' popularity by transferring money to various bank accounts. Ali was told to make "purchases" from a luxury fashion brand to boost the products' popularity, by transferring money to various bank accounts. ST PHOTO: KELVIN CHNG After one successful attempt where he earned a 10 per cent commission, Ali spent all of his $6,000 savings making more "purchases". When the platform claimed he had to complete more jobs to withdraw his commission, Ali panicked. He borrowed about $9,000 from a former colleague by lying he needed it for his home renovation. He also got more than $11,000 in cash advances from two banks, and almost $6,000 from two licensed moneylenders. When he still could not get his money back, Ali made a police report. Every month, Ali can set aside only $500 from his $2,500 income to pay off his debts. Listing the late charges and interest he would incur, Ali said: "I have no idea how to manage the coming months." Debt-laden scam victims can seek help from non-profit organisations such as CCS and AMP Singapore. The proportion of cases handled by AMP Singapore's Debt Advisory Centre (DAC) that were linked to scams grew from about 5 per cent in 2023 to 15 per cent in 2024. Mr Muhd Alamin Ab Majid, one of DAC's case officers, said the centre provides victims with psychological and emotional support, and guides them on legal options, such as making a police report. Apart from case management and counselling, DAC runs support groups, where clients can meet former debtors. CCS gives free weekly information talks to explain how to reasonably manage debt, and offers free individual consultation sessions. Debt-laden scam victims like Ali can seek help from various non-profit organisations such as CCS, and AMP Singapore. ST PHOTO: KELVIN CHNG Ms Tan said its counsellors calculate how much debtors can set aside monthly to pay off their debts. This may include cutting down on expenses, such as switching from private-hire rides to public transport. CCS then proposes the debt repayment plan to creditors, who will pause demands for repayment. But if debtors still cannot pay up, Ms Tan said one option is to file for bankruptcy. 'I skipped meals' An expatriate in his 40s who wanted to be known only as Mr V. J. had to repay $650,000 after falling for an investment scam in July 2024. Of this amount, $200,000 was borrowed from friends, while $450,000 was from banks. Selling his house in India was not enough. Mr V. J., who declined to reveal his job or income, said: "There were three months when I was skipping meals because I didn't have money." CCS negotiated with the banks to increase his loan period from two to five years. He also cut his monthly spending to about $1,000. Now, half of his salary goes into repaying loans. He has since cleared over 90 per cent of his debt. He said: "I could have said I'm bankrupt and just run away, but I took a loan. Whether I was cheated or not, I will pay." In cases where consumers lodge a complaint with Fidrec, they first give the financial institution 10 business days to resolve the matter directly. But if parties do not reach an agreement, Fidrec may help by facilitating mediation. A Fidrec spokesman said victims typically request financial institutions to waive all or part of their debts, or allow repayments through instalments. He added that the proportion of debt-laden scam victims who settled amicably during mediation rose significantly from 27 per cent in 2022 to 67 per cent in 2024. If all else fails, the victim can request adjudication - a process where an independent party issues a final decision. The spokesman said: "In cases where victims had voluntarily authorised the loan or failed to adequately safeguard their banking credentials, claims are often dismissed during adjudication." Ms Tan said: "If you need to borrow to pay your debts, you need to seek help. Because borrowing will not solve the problem. It will only grow bigger." Helplines
Straits Times
26-04-2025
- Business
- Straits Times
More scam victims in Singapore in debt; rise in cases seen by credit counselling agencies
Ali (not his real name), who took out over $25,000 in loans due to a job scam, is part of a growing number of scam victims who incur mountains of debt. ST PHOTO: KELVIN CHNG More scam victims in Singapore in debt; rise in cases seen by credit counselling agencies SINGAPORE – When a woman whom Ali (not his real name) liked asked him to help with her part-time job, he thought he had a chance at romance. Instead, his savings were wiped out, and he is more than $25,000 in debt. Scam victims in Singapore lost a record $1.1 billion in 2024. Some victims, like Ali, do not just lose their savings, but incur mountains of debt as they try to address these losses. Non-profit organisation Credit Counselling Singapore (CCS), which typically helps people with business and credit card debt, has seen more than 200 scam victims since they started recording such cases in 2023. CCS general manager Tan Huey Min said the number of cases is rising. With 33 such victims in the first quarter of 2025 alone, there could be more than 130 cases in 2025 , up from 106 in 2024, she said. Ms Tan said these victims usually fall for investment scams, where they are told to invest in schemes before they can withdraw their capital and profits. She added: 'When they see their money going in and not coming out, the victim will find more money to pump in, and that's how they get into trouble.' The Financial Industry Disputes Resolution Centre (Fidrec), which helps consumers resolve disputes with financial institutions, saw a rise in scam-related disputes from 325 cases in 2022 to 879 in 2024. About 3 per cent of such cases annually involve victims who incur debt with financial institutions, either by borrowing money during the scam, or by scammers taking loans in their name without their knowledge. Debt trap Ali, 40, had accepted a Facebook friend request from a woman named 'Jannah' on March 30, the day before Hari Raya. The delivery driver, who is single, texted her daily. Despite never having seen her or hearing her voice, 'we shared pictures of our meals, and she even said she wanted to taste my mum's cooking', said Ali. Then, 'Jannah' – who claimed to be a Malaysian working in Singapore – asked Ali for financial help. All he had to do was to make 'purchases' from a luxury fashion brand to boost the products' popularity by transferring money to various bank accounts. Ali was told to make 'purchases' from a luxury fashion brand to boost the products' popularity, by transferring money to various bank accounts. ST PHOTO: KELVIN CHNG After one successful attempt where he earned a 10 per cent commission , Ali spent all of his $6,000 savings making more 'purchases'. When the platform claimed he had to complete more jobs to withdraw his commission, Ali panicked. He borrowed about $9,000 from a former colleague by lying he needed it for his home renovation. He also got more than $11,000 in cash advances from two banks, and almost $6,000 from two licensed moneylenders. When he still could not get his money back, Ali made a police report. Every month, Ali can set aside only $500 from his $2,500 income to pay off his debts. Listing the late charges and interest he would incur, Ali said: 'I have no idea how to manage the coming months.' Debt-laden scam victims can seek help from non-profit organisations such as CCS and AMP Singapore. The proportion of cases handled by AMP Singapore's Debt Advisory Centre (DAC) that were linked to scams grew from about 5 per cent in 2023 to 15 per cent in 2024. Mr Muhd Alamin Ab Majid, one of DAC's case officers, said the centre provides victims with psychological and emotional support, and guides them on legal options, such as making a police report. Apart from case management and counselling, DAC runs support groups, where clients can meet former debtors. CCS gives free weekly information talks to explain how to reasonably manage debt, and offers free individual consultation sessions. Debt-laden scam victims like Ali can seek help from various non-profit organisations such as CCS, and AMP Singapore. ST PHOTO: KELVIN CHNG Ms Tan said its counsellors calculate how much debtors can set aside monthly to pay off their debts. This may include cutting down on expenses, such as switching from private-hire rides to public transport. CCS then proposes the debt repayment plan to creditors, who will pause demands for repayment. But if debtors still cannot pay up, Ms Tan said one option is to file for bankruptcy. 'I skipped meals' An expatriate in his 40s who wanted to be known only as Mr V. J. had to repay $650,000 after falling for an investment scam in July 2024. Of this amount, $200,000 was borrowed from friends, while $450,000 was from banks. Selling his house in India was not enough. Mr V. J., who declined to reveal his job or income, said: 'There were three months when I was skipping meals because I didn't have money.' CCS negotiated with the banks to increase his loan period from two to five years. He also cut his monthly spending to about $1,000. Now, half of his salary goes into repaying loans. He has since cleared over 90 per cent of his debt. He said: 'I could have said I'm bankrupt and just run away, but I took a loan. Whether I was cheated or not, I will pay.' In cases where consumers lodge a complaint with Fidrec, they first give the financial institution 10 business days to resolve the matter directly. But if parties do not reach an agreement, Fidrec may help by facilitating mediation. A Fidrec spokesman said victims typically request financial institutions to waive all or part of their debts, or allow repayments through instalments. He added that the proportion of debt-laden scam victims who settled amicably during mediation rose significantly from 27 per cent in 2022 to 67 per cent in 2024. If all else fails, the victim can request adjudication – a process where an independent party issues a final decision. The spokesman said: 'In cases where victims had voluntarily authorised the loan or failed to adequately safeguard their banking credentials, claims are often dismissed during adjudication.' Ms Tan said: 'If you need to borrow to pay your debts, you need to seek help. Because borrowing will not solve the problem. It will only grow bigger.' Christine Tan is a journalist at The Straits Times reporting on crime, justice and social issues in Singapore. Helplines Credit Counselling Singapore: 6225-5227 AMP Singapore: 6416-3960 or 6416-3961 Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
26-04-2025
- Business
- Straits Times
More scam victims in debt; rise in cases seen by credit counselling agencies
Ali (not his real name), who took out over $25,000 in loans due to a job scam, is part of a growing number of scam victims who incur mountains of debt. ST PHOTO: KELVIN CHNG More scam victims in debt; rise in cases seen by credit counselling agencies SINGAPORE – When a woman whom Ali (not his real name) liked asked him to help with her part-time job, he thought he had a chance at romance. Instead, his savings were wiped out, and he is more than $25,000 in debt. Scam victims in Singapore lost a record $1.1 billion in 2024. Some victims, like Ali, do not just lose their savings, but incur mountains of debt as they try to address these losses. Non-profit organisation Credit Counselling Singapore (CCS), which typically helps people with business and credit card debt, has seen more than 200 scam victims since they started recording such cases in 2023. CCS general manager Tan Huey Min said the number of cases is rising. With 33 such victims in the first quarter of 2025 alone, there could be more than 130 cases in 2025 , up from 106 in 2024, she said. Ms Tan said these victims usually fall for investment scams, where they are told to invest in schemes before they can withdraw their capital and profits. She added: 'When they see their money going in and not coming out, the victim will find more money to pump in, and that's how they get into trouble.' The Financial Industry Disputes Resolution Centre (Fidrec), which helps consumers resolve disputes with financial institutions, saw a rise in scam-related disputes from 325 cases in 2022 to 879 in 2024. About 3 per cent of such cases annually involve victims who incur debt with financial institutions, either by borrowing money during the scam, or by scammers taking loans in their name without their knowledge. Debt trap Ali, 40, had accepted a Facebook friend request from a woman named 'Jannah' on March 30, the day before Hari Raya. The delivery driver, who is single, texted her daily. Despite never having seen her or hearing her voice, 'we shared pictures of our meals, and she even said she wanted to taste my mum's cooking', said Ali. Then, 'Jannah' – who claimed to be a Malaysian working in Singapore – asked Ali for financial help. All he had to do was to make 'purchases' from a luxury fashion brand to boost the products' popularity by transferring money to various bank accounts. Ali was told to make 'purchases' from a luxury fashion brand to boost the products' popularity, by transferring money to various bank accounts. ST PHOTO: KELVIN CHNG After one successful attempt where he earned a 10 per cent commission , Ali spent all of his $6,000 savings making more 'purchases'. When the platform claimed he had to complete more jobs to withdraw his commission, Ali panicked. He borrowed about $9,000 from a former colleague by lying he needed it for his home renovation. He also got more than $11,000 in cash advances from two banks, and almost $6,000 from two licensed moneylenders. When he still could not get his money back, Ali made a police report. Every month, Ali can set aside only $500 from his $2,500 income to pay off his debts. Listing the late charges and interest he would incur, Ali said: 'I have no idea how to manage the coming months.' Debt-laden scam victims can seek help from non-profit organisations such as CCS and AMP Singapore. The proportion of cases handled by AMP Singapore's Debt Advisory Centre (DAC) that were linked to scams grew from about 5 per cent in 2023 to 15 per cent in 2024. Mr Muhd Alamin Ab Majid, one of DAC's case officers, said the centre provides victims with psychological and emotional support, and guides them on legal options, such as making a police report. Apart from case management and counselling, DAC runs support groups, where clients can meet former debtors. CCS gives free weekly information talks to explain how to reasonably manage debt, and offers free individual consultation sessions. Debt-laden scam victims like Ali can seek help from various non-profit organisations such as CCS, and AMP Singapore. ST PHOTO: KELVIN CHNG Ms Tan said its counsellors calculate how much debtors can set aside monthly to pay off their debts. This may include cutting down on expenses, such as switching from private-hire rides to public transport. CCS then proposes the debt repayment plan to creditors, who will pause demands for repayment. But if debtors still cannot pay up, Ms Tan said one option is to file for bankruptcy. 'I skipped meals' An expatriate in his 40s who wanted to be known only as Mr V. J. had to repay $650,000 after falling for an investment scam in July 2024. Of this amount, $200,000 was borrowed from friends, while $450,000 was from banks. Selling his house in India was not enough. Mr V. J., who declined to reveal his job or income, said: 'There were three months when I was skipping meals because I didn't have money.' CCS negotiated with the banks to increase his loan period from two to five years. He also cut his monthly spending to about $1,000. Now, half of his salary goes into repaying loans. He has since cleared over 90 per cent of his debt. He said: 'I could have said I'm bankrupt and just run away, but I took a loan. Whether I was cheated or not, I will pay.' In cases where consumers lodge a complaint with Fidrec, they first give the financial institution 10 business days to resolve the matter directly. But if parties do not reach an agreement, Fidrec may help by facilitating mediation. A Fidrec spokesman said victims typically request financial institutions to waive all or part of their debts, or allow repayments through instalments. He added that the proportion of debt-laden scam victims who settled amicably during mediation rose significantly from 27 per cent in 2022 to 67 per cent in 2024. If all else fails, the victim can request adjudication – a process where an independent party issues a final decision. The spokesman said: 'In cases where victims had voluntarily authorised the loan or failed to adequately safeguard their banking credentials, claims are often dismissed during adjudication.' Ms Tan said: 'If you need to borrow to pay your debts, you need to seek help. Because borrowing will not solve the problem. It will only grow bigger.' Christine Tan is a journalist at The Straits Times reporting on crime, justice and social issues in Singapore. Helplines Credit Counselling Singapore: 6225-5227 AMP Singapore: 6416-3960 or 6416-3961 Join ST's WhatsApp Channel and get the latest news and must-reads.
