Often when we speak of professional debt collector Singapore, we tend to picture some evil-looking loan shark running after you for money. However, that might be the exact opposite of what to expect from these loan repayment mediators.
Financial needs or unexpected money requirements are likely to push individuals to opt for money lending to deal with the situation. This is precisely how you turn into a debtor and bind an obligation to pay back your principal amount along with an added interest in some cases.
You may think of a debt collector in Singapore as a bully, forcing you to pay, but in actual terms, they are simply there to remind you of the due loan payments and do consistent follow-ups. Along with the recovery of the initial amount, these collectors also help figure out ways for more manageable repayments, including amount split-ups and feasible installments.
To top it all, debt collectors hold firm power to proceed with all the actions that your lender, who are your friends or family in this case, was most likely to do. This gives them the authority to speak with you and dig up any social data that may help them recover the amount sooner.
More often than not, some people report the unethical actions taken by the agents, despite the straightforward guidelines of what the debt collector Singapore is allowed to do. The Credit Collection Association of Singapore (CCAS) puts forward a well-stated code of conduct to govern the agent’s scope of work.
Today we have curated a dedicated list of roles and responsibilities that a debt collector can do in Singapore along with the ones that he cannot.
What can a debt collector in Singapore do?
The long-held debate around the role of a debt collector often goes into circles. Below are the clearly defined dos for a collector in Singapore coupled with the extent of authority he is likely to have.
● Recover debts owed by friends or family
A debt collector in Singapore is often hired by your friends or family from whom you have borrowed a particular sum of amount. They help in easier repayment by suggesting alternate methods that facilitate the collection.
Unlike illegal recovery gangsters, trained debt collectors only take up the money repayment cases after a vigilant cross-checking of the facts and proof. Whether it is a valid IOU or a text conversation that indicates the borrowing of money— these professional collectors first ensure the correctness of the request.
Contrary to what people think, there is also a Statute of Limitations to loans that you take from your known ones. Unlike a business agreement, the IOU clearly states the time duration of 6 years, within which you can demand your money back. After this time period, the borrower is not obligated to return the loan.
In case of no IOU or written confirmations, the borrower is not obliged to repay you in any case!
● Negotiate the sum of the amount
Many a time, people are unable to pay back the loan because of the enormous amount accumulated that starts to haunt them. This is where a debt collector in Singapore can come in and mediate the situation.
Looking forward to a faster resolution, these collectors help in discovering a midway and bring both the parties to the table. In case the debtor can establish a shortage of funds at the time being, the recovery agent can also offer an installment-based repayment deal after discussing with the lender. While this might be a plot twist for some, debt collectors serve to be more helpful than scary!
● Being empathetic and civil
Yes, you read that right! While one may assume a debt collection officer to be abusive or rude, it is often contrary to that mainstream image. Most debt collection agencies are known for holding onto their values and having civil people do the required job.
It is also worthy to note that a collector can never choose to harass or threaten you for getting the money back. If one is seen to be indulging in such an act, the agent can be put https://www.resolutedebtrecovery.com.sg/blog/the-top-5-things-you-didnt-know-about-debt-collectors-in-singapore/behind bars straight away under the Protection from Harassment Act.
● Cannot impersonate government bodies
Debt collectors who tend to be someone from the government can be booked under severe legal charges. It is a criminal offense to impersonate a government official or a police officer for putting added pressure on the debtor.
Additionally, collectors who set up fraud websites to gain important information from the borrower can only be arrested. It is illegal to build such spoof web pages that mimic government authorities and present fake claims.
● Cannot congregate in large groups
In order to safeguard the borrower and help him fight the fear of numerous collectors, the law does not allow more than 5 agents to group against the debtor. It is treated as an illegal assembly and can be directly reported to the police of your area to have strict action taken against them.
Along with this, such collection officers cannot sort to any actual violence as well. It is firmly prohibited to vandalize one’s property or opt for illegal stalking that is likely to make the debtor feel unsafe.
People tend to portray a skilled debt collector in Singapore in the negative light of fear and threat. This usually puts off individuals to hire these agents and facilitate their loan recoveries.
Dedicated debt collectors can be your go-to solution if you are stuck in a long-held financial loop. To put it into perspective, collection agents can act like magicians to bring the lent money back to you.
If you are looking for a reliable debt collection agency that can provide you with trustworthy collectors, Resolute Debt Recovery is the solution for you. With a team of experienced professionals, we ensure to present you with results having higher chances of getting back the money people owe you.
Reach out to us today, and we will be happy to help!