Join the Movement—Help Make Honest Lending the Norm
Author: Daniel Tan
Written at: 05 Aug, 2025
Ever clicked on an ad promising “low interest rates,” “instant approval,” or claiming to be “officially appointed by chambers”? You’re not alone. These clickbait tactics aren’t just marketing— they’re the frontline in a larger, unregulated war for your trust (and your wallet).
We’ve spent 2 years arming borrowers with guides, insider tips, and commission-exposing stories. But even the most vigilant consumer can be caught in a web of fake reviews, exclusive agreements, and too-good-to-be-true promises. Why? Because in Singapore, loan brokers operate in a wild west with no real rules—no licensing, no training, no accountability. No one should need to be a CFA or industry insider to avoid being misled. The system should be designed so that ordinary borrowers are protected—by default.
Why Everyone Should Care: Beyond Individual Loss
This issue isn’t rare or hypothetical. 73% of SMEs and 1 in 3 Singaporeans have taken a loan at some point—which means millions could be at risk of overpaying or being misled by unregulated brokers.
Unchecked loan broker practices drive up borrowing costs, erode trust in the financial system, and hurt businesses and families across Singapore. When brokers earn bigger commissions for steering you into higher-interest loans or tack on hidden fees, borrowers end up paying more than they should. Without transparency or accountability, there’s no pressure for brokers to find you the best deal—only the deal that pays them most. This isn’t just a niche problem—it’s a threat to everyone’s financial wellbeing and to our country’s reputation as a safe place to do business.
How We’re Fighting Back
Our recent “fight clickbait with clickbait” campaign didn’t just call out broker deception—it mimicked their clickbait landing pages, featuring claims like “1% Loans”, “instant approval”, and “we’ll negotiate the best rate for you”. But the deception didn’t stop there. We also exposed:
Why? To show just how easy it is for anyone—even the most attentive borrower—to be misled. Unlike with a tangible product or service, where defects are usually obvious, misconduct in loans is almost always invisible. If a broker steers you into a higher-interest loan or claims you’re getting the best deal, how would you know otherwise? Most borrowers never realize they’ve been shortchanged at all. The real lesson: it’s nearly impossible for the average person to separate fact from fiction at a glance.
The Broken System Behind the Bait
Unlike the US, UK, or Australia—where laws require brokers to be licensed, transparent, and act in your best interest—Singapore’s market lets anyone become a broker overnight. No oversight means fake reviews and bait-and-switch offers run wild. And while MAS and CEA has cracked down on car dealers, property agents, and employment agencies, loan brokers remain untouched—despite influencing life-changing financial decisions.
Even in tightly regulated industries like property agency, conflicts of interest and self-serving behavior still occur. For example, a Singapore property agent was fined $30,000 and suspended for 12 months for faking offers to earn a larger commission—a case reported by the Straits Times (source). In the world of loan brokering, where there’s no licensing, oversight, or even an opposing party for borrowers to check with, the risks are even higher. Borrowers can only meet who they are introduced to—making them far more vulnerable to abuse that might never be uncovered.
Even in places with regulation, the risk doesn’t disappear entirely. In 2024, United Wholesale Mortgage—the largest US mortgage lender—was sued for allegedly working with brokers to steer borrowers into more expensive loans, costing consumers billions in excess fees.
History shows just how costly loose oversight can be. During the US subprime mortgage crisis, loan brokers were heavily scrutinized for steering borrowers into high-interest, risky loans that contributed to the collapse. As a result, the Dodd-Frank Act was enacted, banning broker compensation tied to loan terms and requiring full disclosure to protect borrowers. If it took a financial meltdown to spark regulation elsewhere, it’s a clear warning for Singapore: the absence of rules leaves borrowers wide open to harm.
What Needs to Change
Personal vigilance isn’t enough. Here’s what true reform looks like:
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Mandatory licensing and ethical training for all loan brokers
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Full disclosure of conflicts and commission structures
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Enforcement against fake reviews, fake partnerships
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Written, auditable KYC for every recommendation (so that both borrowers and regulators can see what advice was given, just like in banking or insurance). This prevents brokers from making misleading promises without accountability and ensures a paper trail if anything goes wrong.
Your Role in Shaping an Honest Loan Landscape
This isn’t just about you protecting yourself. It’s about standing up for a system where honesty is the default, not the exception. Sign our petition. Share this article. Let’s demand a level playing field—so Singapore’s loan market works for everyone.
#StopClickbait #SGloan
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