Singapore-Debt collection agencies say that the legislation proposed to regulate debt collection activities could help reduce the stigma of collectors involved in loan sharks and improve industry standards.
Five companies told The Straits Times on Thursday (June 16th) that they welcome the proposed rule that a police license is required.
However, some have raised concerns that police approval must be sought for the hiring of staff, as it can make it more difficult to hire workers.
The authorization and approval system for debt collection companies and their workers was in a new proposed rule announced by the Ministry of the Interior on Wednesday.
Israel Shankar Ganesh, Deputy Chief Executive Officer and Legal Officer at JMSRogers Global, said the scheme would help reduce the impression that all debt collectors behave like loan sharks in debt collection.
“There are black sheep in the industry who use improper means to recover money, such as blasphemous words and violence, but that’s what we all do. Not, “he said.
“Having a police license indicates that we are a legitimate business doing things legally.”
Ganesh said JMS Rogers would first contact the debtor by phone or email. If there is no reply, the collector visits the debtor at his house. If the debtor is not supportive, you may need to visit repeatedly.
MsLynLing, founder of FastDebt Recovery, said her staff would provide evidence such as a contract to convince the debtor to pay.
“When debtors and creditors have conflicting stories, we try to arrange for them to fill and organize,” she added.
Currently, there are no specific restrictions on what debt collectors can and cannot do.
However, false collectors who injure the debtor or destroy public property can be prosecuted by law.
In one case, a man wearing Chinese funeral clothes and harassing debtors for repayment was imprisoned for five weeks in January 2020.