SINGAPORE: Debt collectors may be subject to screening by the police and debt collection businesses might have to apply for licences, under a proposed law to regulate and better take care of debt collection activities in Singapore.
With the Commercial collection agency Bill introduced within Parliament on Mon (Aug 1), the particular Ministry of House Affairs (MHA) also seeks to provide the authorities with the “necessary levers” to stem “problematic” debt collection practices.
Over the past few years, there has been a “high number” of police reports against debt collection businesses and debt collectors meant for collecting debts in a manner that caused “alarm plus nuisance” to the general public, said the ministry in a press release.
There were 272 such reports within 2021, up through 134 in 2015. The number of reports on debt collection harassment strike a peak associated with 590 in 2018.
“Debt selection is a legitimate action that facilitates the fulfilment of financial obligations, and MHA will adopt a pragmatic strategy towards regulating activities such as, ” said MHA.
This employs the ministry sought public feedback upon proposals to regulate business collection agencies activities from Jun 15 to Jun 29. In 03, Minister of State for Home Affairs Desmond Tan also said within Parliament that MHA might put in place a new business collection agencies regulatory framework.
If the Bill is definitely passed, debt collection activities will be defined as “any activity undertaken within Singapore that involves finding the debtor of a financial debt, or requesting, demanding or collecting from the debtor money because of under the debt”, said MHA in the press release.
Beneath the Bill, any person who would like to become a debt enthusiast for a licensed commercial collection agency company will have to be given the green light by the police. Lenders will be subject to testing by the police and must be assessed to be “fit and proper”.
For example , the authorities will consider if the person has dedicated any offences under a range of laws such as the Organised Crime React, Vandalism Act plus Protection from Harassment Function.
Debt collectors must not display or even use any actually threatening words, conduct, writing or indicators. They also must not post or screen any notices associated with the debt on a residence that does not belong to the debtor, or from his workplace or any public place.
Debt collectors must not continue to keep try collecting cash from or get in touch with the debtor if the person has knowledgeable the debt collection enterprise or the collector that they are not the debtor – unless the debt collector has taken every reasonable precautions to make sure that the person is in fact the debtor.
They also should not still pursue the borrower if the latter provides informed them by any verifiable implies that the debt is in question and that they wish to negotiate it through other legal means.
Under the proposed law, police approvals can be rescinded if, like the debt collector breaks the law, rules or regulations.