Discovering that your maid or Migrant Domestic Worker (MDW) has borrowed money from a loan shark can be stressful and worrying. You may be concerned about your family’s safety, your home being targeted, or whether you could become responsible for the debt.
First things first: don’t panic.
If you suspect that your helper has borrowed from an illegal moneylender, also known as an Ah Long, it is important to stay calm, speak to your helper, and take the appropriate steps to protect your household.
In Singapore, borrowing from unlicensed moneylenders can have serious consequences for an MDW. MOM has stated that an MDW found to have borrowed from unlicensed moneylenders may have her Work Permit revoked and may be barred from future employment in Singapore.
Here’s what you should do if you find yourself in this situation.
How to Tell If Your Helper May Have Borrowed from a Loan Shark
Your helper may not immediately tell you that she has borrowed money from an illegal moneylender. However, there may be warning signs that something is wrong.
Look out for:
- Frequent or unexplained phone calls and messages
- Unusual anxiety, fear or nervousness, particularly after using her phone
- Requests for early salary payments or repeated cash advances
- Unexplained financial difficulties
- Strangers loitering around your home or residential estate
- Threatening messages or notes
- Vandalism, paint splashing or other damage to your property
These signs do not necessarily mean that your helper has borrowed from a loan shark. However, if several of them occur together, it is worth having a private and calm conversation with her.
1. Speak to Your Helper Immediately
The first step is to find out what has happened.
Speak to your helper privately and without immediately becoming confrontational. Your goal is to understand the situation and gather as much information as possible.
Ask her:
- When did she borrow the money?
- How much did she borrow?
- Who did she borrow it from?
- How did she contact the lender?
- Has she already made any repayments?
- How much is she being asked to repay?
- Has the lender contacted or threatened her?
- Does the lender have your name, address or other personal information?
- Has anyone contacted or approached your household?
Understanding the situation will help you determine what action needs to be taken next.
Keep in mind that your helper may be frightened or embarrassed. Creating a safe environment for an honest conversation can make it easier for you to establish the facts.
2. Do Not Deal Directly with the Loan Shark
It can be tempting to contact the lender yourself, negotiate the debt or try to settle the matter quickly.
However, you should avoid dealing with loan sharks or assisting them in any way.
The Singapore Police Force advises members of the public to stay away from loan sharks and not to work with or assist them. If you suspect or know of loansharking activity, you can contact the Police at 999 or the X-Ah Long hotline at 1800-924-5664.
If the lender contacts you, avoid getting drawn into negotiations. Instead, keep records of the communication and provide the information to the Police.
3. Make a Police Report
Once you have gathered information from your helper, consider making a police report, particularly if there have been threats, harassment, suspicious activity or vandalism.
This is important because loan sharks may have obtained your personal information, such as your name, telephone number or home address.
If they cannot reach your helper or do not receive repayment, they may attempt to contact or harass members of your household.
Loan-shark harassment can include:
- Repeated calls or messages
- Loitering around your home
- Leaving notes at your door
- Taking photographs of your property
- Splashing paint on your home
- Locking gates or doors
- Vandalising property
- Making threats
The Police have repeatedly taken action against suspected loan-shark harassment cases involving residential properties in Singapore.
If there is an immediate threat to your safety, call 999.
4. Document Everything
Keep a record of anything that may be relevant to the case.
This can include:
- Screenshots of messages
- Phone numbers used by the lender
- Dates and times of calls
- Photographs of vandalism or threatening notes
- CCTV footage, where available
- Copies of police reports
- Information provided by your helper
- Details of anyone who approaches your home
Do not delete threatening messages or other evidence simply because the harassment has stopped.
Having a clear record can help the authorities understand what has happened and may be useful if further incidents occur.
5. Protect Your Household
Your family’s safety should be your priority.
If you believe that your home may be targeted, inform family members about the situation. Children should be told not to speak to strangers or provide information about your helper, household, or daily routine.
You can also review your home’s existing security measures, such as:
- Door and gate security
- CCTV cameras
- Digital door locks
- Intercom systems
- Access to your residential building
If you notice someone suspiciously loitering around your home, do not confront them yourself. Take note of relevant details from a safe location and contact the Police if necessary.
6. Should You Pay the Loan?
One of the most difficult decisions for an employer is whether to repay the debt on behalf of the helper.
In most situations, employers may choose not to repay the loan themselves. Your helper borrowed the money, and paying it on her behalf could create an expectation that the employer will resolve her financial problems.
You should discuss the situation openly with your helper and understand whether she has a realistic way of repaying what she owes.
For example, you may discuss whether she can use part of her future salary to repay a legitimate debt arrangement. However, do not simply deduct money from her salary without following MOM’s requirements.
MOM states that salary reductions for an MDW require the helper’s written consent and the relevant notification to MOM. Employers must also comply with the rules governing salary deductions.
Most importantly, you should not feel pressured into paying an illegal moneylender simply because you are concerned about harassment.
If you are unsure about the appropriate approach, speak to your employment agency or the relevant authorities before making any payment or salary arrangement.
7. Speak to Your Employment Agency
You do not have to handle the situation alone.
If you employed your helper through an employment agency, contact the agency as soon as possible. A good agency can help you understand the available options and guide you through the administrative steps involved.
At Grace Home Employment, we understand that issues involving your helper can affect the entire household. Our approach focuses on clear communication, transparency and ongoing support for families.
An employment agency can help you consider whether it is appropriate to:
- Continue the employment arrangement
- Establish a repayment arrangement
- Report the matter to MOM
- Transfer the helper, where appropriate
- Terminate the employment
- Arrange repatriation
The appropriate course of action depends on the circumstances of each case.
8. Consider Whether to Continue the Employment
After discovering that your helper has borrowed from a loan shark, it is understandable to feel a loss of trust.
Some employers may decide that they no longer feel comfortable continuing the employment relationship. Others may choose to give their helper an opportunity to resolve the situation, particularly if this is an isolated incident and there are no ongoing safety concerns.
There is no single answer that applies to every household.
When making your decision, consider:
- The amount and circumstances of the borrowing
- Whether your helper was honest about the situation
- Whether she has borrowed from loan sharks previously
- Whether there has been harassment or threats
- Whether your family’s safety could be affected
- Whether your helper is willing and able to resolve the situation
- Whether the employment relationship can continue with trust
If the situation presents an ongoing risk to your household, you may wish to discuss termination or repatriation with your employment agency.
9. If You Decide to Terminate Her Employment
If you decide that the employment relationship should end, make sure you follow the proper procedures.
For example, if your helper is no longer working for you, her Work Permit must be cancelled. MOM’s current guidance states that employers must cancel an MDW’s Work Permit within one week after her last day of work. If she remains in Singapore after cancellation, she must have a valid legal stay while awaiting departure.
If you are terminating the employment arrangement, you should also:
- Agree on the helper’s last day of work.
- Make the necessary arrangements for her departure.
- Cancel her Work Permit within the required timeframe.
- Ensure she has valid immigration status until she leaves Singapore.
- Settle any outstanding salary properly.
- Keep records of relevant agreements and payments.
- Discuss any salary deductions or repayment arrangements in writing and ensure they comply with MOM requirements.
Employers should also be aware that the costs and responsibilities associated with repatriation may still apply under the Work Permit conditions.
10. Inform MOM About the Situation
If your helper has borrowed from an unlicensed moneylender, you may also notify MOM.
MOM provides an avenue for employers to report an MDW who has borrowed money from an unlicensed moneylender and to provide a copy of the Police report.
This is particularly important because borrowing from an unlicensed moneylender can have consequences for the helper’s Work Permit and future employment in Singapore.
MOM has stated that an MDW found to have borrowed from unlicensed moneylenders may have her Work Permit revoked and may be barred from future employment in Singapore.
The Police may also investigate circumstances involving an MDW. Being investigated does not itself mean that the helper is guilty; depending on the circumstances, the Police may contact the employer for assistance.
Can You Deduct the Loan from Your Helper’s Salary?
This is an area where employers should be particularly careful.
You should not make an informal salary deduction simply because your helper owes money to a loan shark.
MOM has specific requirements concerning salary reductions and deductions. For example, an employer who wants to reduce an MDW’s salary must obtain her written consent and notify MOM through the relevant FDW eService process.
Before making any deduction or repayment arrangement, check the current MOM requirements and keep written documentation of what has been agreed.
When in doubt, seek advice from your employment agency or MOM rather than making an arrangement that could later create a dispute.
How to Prevent Your Helper from Falling into Debt
While it is impossible to prevent every financial problem, employers can take steps to encourage responsible money management.
Encourage Financial Awareness
Talk openly with your helper about budgeting, saving and responsible borrowing.
New helpers may also benefit from understanding the risks associated with unlicensed moneylenders in Singapore.
MOM has highlighted financial education and money-management awareness as important ways to help MDWs avoid borrowing from illegal moneylenders.
Encourage Regular Savings
Encourage your helper to set aside part of her salary for savings and emergencies.
Having accessible savings may reduce the temptation to turn to high-risk sources of borrowing when an unexpected expense arises.
Establish Clear Expectations
From the beginning of the employment relationship, maintain open communication about money matters.
Your helper should know that she can raise financial concerns with you or seek appropriate assistance instead of turning to illegal lenders.
Watch for Sudden Financial Distress
If your helper suddenly asks for repeated salary advances, appears unusually anxious, or receives frequent calls from unknown numbers, consider having a conversation with her.
Early communication may help identify financial difficulties before they become more serious.
What If the Loan Shark Harasses Your Family?
Do not panic and do not attempt to handle the loan shark yourself.
Instead:
1. Prioritise safety.
If you believe there is an immediate danger, call 999.
2. Document the incident.
Take photographs or preserve messages, notes and other evidence where it is safe to do so.
3. Make a police report.
Provide the Police with as much information as possible.
4. Do not negotiate with the loan shark.
Avoid making promises or entering into repayment arrangements with an illegal moneylender.
5. Inform your employment agency.
Your agency can help you understand the next steps concerning your helper’s employment.
6. Notify MOM where appropriate.
If the situation affects the helper’s employment or involves borrowing from an unlicensed moneylender, follow MOM’s reporting requirements.
Final Thoughts: Stay Calm and Take the Right Steps
Finding out that your maid has borrowed from a loan shark can be frightening, particularly when you worry that your family or home could become a target.
However, the most important thing is to stay calm and act promptly.
Speak to your helper to understand what happened. Make a Police report when appropriate, document any harassment, protect your household, and avoid dealing directly with loan sharks.
You also do not necessarily have to make the decision alone. Your employment agency can help you understand your options, while MOM and the Police can provide guidance on regulatory and safety matters.
If you ultimately decide to terminate the employment, make sure you follow the proper Work Permit cancellation, salary and repatriation procedures.
At Grace Home Employment, we believe that finding and managing a helper should come with trust, transparency and peace of mind. If you are facing difficulties with your current helper and are unsure about what to do next, speaking to an experienced employment agency can help you make a more informed decision.
Need help with your helper situation? Contact Grace Home Employment for guidance on your next steps.
Grace Home Employment 恩居人力中介
321 Orchard Road, Orchard Shopping Centre, 05-01/02, Singapore 238866
+65 8865 8341
enquiry@gracehome.com.sg
