Lending money to people and getting it back to you can be a seemingly never-ending loop. Sudden money requirements often compel people to borrow some bucks and seek financial assistance. All this can soon turn into a massive burden if not resolved and repaid in time. This is precisely where debt collection steps in.
While people may initiate exaggerated talks around professional debt collectors in Singapore, they often work as mediators to fasten the repayment processes. Contrary to their negative image prevalent in society, debt collectors actively jump in and help both parties find a midway.
The process of Singapore debt collection can be tedious and daunting, but it is essential to resolve money matters and close the long-held dues against an individual. Whether it is communicating between the debtor and the lender or liaising the legal procedures to sort the case quickly— debt collectors in Singapore can be of great help!
Furthermore, debt collectors also assist in coming up with alternate loan repayment methods that can facilitate a faster resolution. This includes split payments, easy installments, and wavering off the interests in some cases.
People tend to think that these debt collectors come with absolute liberty and freedom, but it is exactly the opposite of it in real terms. The Credit Collection Association of Singapore (CCAS) has laid down a comprehensive set of guidelines that are likely to govern the behaviour of these collectors.
With an established code of conduct, debt collection is allowed to take place in a procedural and ethical manner. This is likely to help both the moneylenders and the borrowers to conclude matters amicably.
Steps involved in Singapore debt collection
As it may seem to be, debt collection is a detail-oriented process where every document and each meeting is instrumental in shaping the case and driving it towards a conclusion.
Most people are inclined towards settling their monetary affairs outside courtrooms as lawsuits can go on to be draining while continuing for years. Debt collection is likely to fill the gap in such a case where people can resolve the loan repayment issues without having to knock on the judge’s door.
Below are the steps involved in the sequential process of debt collection in Singapore:
● Start-off Consultation
It is crucial to thoroughly understand your current situation before drafting any strategies or plan of action. Your hired debt collector takes up the loan repayment case after carefully scrutinizing the matter.
This can include the text conversations you have had with the borrower and any agreement or IOU that is signed by both parties. In case of improper or non-existent IOU, your debt collector may choose to refuse the case.
This is also the time when you prepare the base of your loan recovery case. The agent is also responsible for checking the current financial status of the other party and whether they are in a position to return back your amount.
● Research and Required Legal Work
In cases that require immediate legal actions or filling of some court papers, this is the phase where most of the research and documentation is done.
Collection agents are expected to use their due diligence and get a grasp of the entire matter during this time.
● Letter of Demand
Serving to be an authentic legal document, the letter of demand is an excellent way to get your borrower to answer back. Given the value it holds, the letter is powerful enough to get both parties on a negotiation table and address the loan repayment concerns.
The letter of demand also helps in being valid evidence to show that efforts were made before bringing the matter to the trials. The duly-submitted letter proves to be vital proof vouching for your intent.
While preparing your letter of demand, you must also mention the possible legal actions that can be taken if the other party fails to respond or cooperate.
● Await Response
Once you have already slid the letter of demand through the borrower’s doors, it is time to wait for their revert back. More often than not, you are likely to get an acknowledgment or a receipt for the letter first before getting an actual reply.
The letter response timeframe is often fixed within which the receiver has to respond back. Failing to reply can lead to legal consequences and take the concerns to court.
● Negotiate the Amount
Once you have been successful in getting a response from the money borrower, it is easier for you to negotiate the amount now and resolve the matter.
At times when the individual is passive and has not been responding back to your previous calls and follow-ups, a debt collector with the letter of demand can increase the chances of you getting a positive reply.
In case there is still no response from the other party, you are free to file a complaint against the individual and provide the letter of demand as proof of your efforts.
● Filing a Claim
Despite having multiple follow-ups and trying to reach a conclusion, if both parties find it challenging to resolve the case, the debt collector can consider filing a claim with the court.
Claims can also be filed if no common agreement can be figured out between the lender and debtor. The compensation amount and the type of the claim are often dependent on the case details.
While people may think debt collectors to be the evil ones, they are likely to help you with the loan repayment cases.
For both parties, these collection agents serve to be beneficial in reaching a common solution. Singapore debt collection is a comprehensive way of dealing with matters involving finances and can significantly help in easy closures.
If you wish to recover your long-due loan payments and have an amicable resolution, Resolute Debt Recovery is here for you. With best-in-class, trained debt collectors, we ensure faster results with better negotiation terms.
Contact us today, and our dedicated professionals will get you started!