Debt collection in Singapore is bound by a specific code of conduct. Being said that, debt collection is not equal to having a law in place. Thus, it is crucial to know what debt collectors can or cannot do.
What is the Debt Collection Code of Conduct?
For starters, the Credit Collection Association of Singapore also known as CCAS has put forward a code of conduct for their debt collectors. It is unlike the standard laws in Singapore. Although the people of Singapore had urged the government to pass a bill for Singapore debt collection, it has not been approved yet.
So, until the bill gets cleared in the assembly, the public should focus on what the debt collectors can do.
- Debt Collectors Can Talk to Your Close Kin
To put it in simpler words, all the things that your friends or family would do if you lend money from them is what a debt collector can do. They can go through your social media accounts, speak to your friends, drop by your office to talk with you, or call your family to ask your whereabouts.
- They Can Negotiate Loan Repayments
Although you may think of debt collectors as thugs, it is mostly not the case with legal debt collectors. This is because debt collectors are bound by the Protection from Harassment Act and can be sentenced to jail for their improper code of conduct.
Of late, debt collectors play an assertive part and negotiate with the banks on your behalf, unlike gangsters. For instance, if you have a repayment plan in your mind, the debt collector can even accept your plan according to CCAS- given you can prove that you don’t have funds for complete repayment.
- The Debt Collector Cannot Gather in Groups More Than 5
When demanding repayment, the debt collectors cannot gather in a crowd of more than 5 people as it may be subjected to illegal assembly. If this happens, you can call the police and they will be arrested.
- Debt Collectors Cannot Induce Harassment
According to the Protection from Harassment Act, debt collectors can not engage in any verbal or physical harassment. For instance, they cannot threaten to harm your loved ones or do any activity that may cause you distress. Further, they cannot:
- Do unethical stalking such as following you or loitering near your house
- Threaten with a weapon
- Vandalize your property
– Debt Collectors Cannot Impersonate as Government Bodies
The debt collectors cannot mimic government bodies including tax officers or police. Furthermore, they cannot even spoof websites that mimic government agencies or use fake letterhead or identity proofs.
As a responsible citizen of Singapore, you must check with authorities if you receive a government official letter or message for your Singapore debt collection. Please note that it is illegal for any government body to engage in matters related to debt. Therefore, be extra cautious if you receive anything from the government.
- Lending Loan to Friends or Family
It is important to note here that lending a loan to friends or family without a license and at an agreed-upon interest rate is legal in Singapore. Nevertheless, the written agreement is subjected to a statute of limitations.
So, the debtors should initiate legal claims within 6 years of their specified repayment date. After this period, the borrower is not obliged to pay. In case if no written agreement was signed or the statute of limitation is passed, you are still not obliged to repay regardless of what the debt collectors explain.
What Can You Do if Debt Collectors Go Too Far?
Although the legal debt collectors are not gangsters yet the real gangsters can sometimes go too far in the process. If it happens, you should report it to the police immediately. You can file for a protection order if you have adequate proof against them harassing you. As mentioned earlier, the debt collectors have equal rights as any private citizen to whom you owe money.
Avail Loans from Reputable Money Lending Organisations
To avoid all of this from happening, make sure that you borrow money from a reputable organization including a recognized bank, financial institution, or a licensed moneylender.
In the case of money lenders, you can visit the official government website and look for legal money lenders in Singapore. Not only will they charge a specific interest rate but will also ensure your safety.
Connect with Resolute Debt Recovery for Your Singapore Debt Collection
At Resolute Debt Recovery, we do everything right to help you get back your debts in an ethically correct manner. We are Singapore’s trusted debt collection agency, helping people recover their debts from defaulters using all conventional methods – and we can also leverage our strong network of legal firms if need be.
With our years of experience and industry knowledge, we can ensure you to help you recover your debts even when your debtor is being uncooperative or unavailable. We will use our investigative sources to help you get back your hard-earned money in a hassle-free manner – letting you get the peace you deserve. Here’s why you can trust our Singapore debt collection team-
We’ll Help You Save Time – Why chase debtors when professionals can do this on behalf of you? Contact us today to help you recover your debts while you focus on growing your business.
Security and Peace of Mind – It’s not easy to deal with defaulters. To ensure your personal and financial security, we will use proven methods and get you back your hard-earned money!
Vast Industry Experience – Nothing can beat experience! At Resolute Debt Recovery, we bring years of collective experience to settle your debts legally and save you from facing a financial loss.
To know more about our team and personalized debt collection strategies, feel free to contact ushere. We’ll understand your case and use proactive means to assist you with debt collection. You can alternatively enquiry@resolutedebtrecovery.com.sg or give us a call at +65 8821 1238 (Alan). We look forward to assisting you!