IMPACT ON RECRUITMENT
Under the Bill, any person who wants to be a debt collector to get a licensed debt collection business will have to be approved by the police. Debt collectors will be subject to screening by police and must be assessed to be “fit and proper”.
For example , the police can consider if the person has committed any offences under a range of laws including the Organized Crime Act, Vandalism Act and Defense against Harassment Act.
Such verification will require extra hard work on the debt collection companies’ part, said Mr Ganesh.
“We can definitely foresee a delay in the recruiting process as companies would have to perform a lot more meticulous background check on individuals who are looking to sign up for the industry, ” this individual said.
Meant for current employees who have might fall short associated with police approval due to previous convictions, Mr Ganesh suggested that will companies send testimonials to the authorities setting out the achievements and value of these individuals towards the organisation.
“JMS Rogers has always prided alone in its inclusivity concepts and already offers plans for this kind of testimonials to be ready should any of its current employees fail the screening process, ” he added.
Resolute Debt Recovery’s Mr Joe said the proposed law would “put a lot of us out of company because most of these lenders are ex-inmates”.
“For my corporation, we are going to close lower because both of our directors have a chequered history… We will not be able to get acceptance from the authorities to continue business, ” this individual added, noting that his firm has been in the industry for more than the usual decade.
Accurate Debt Recovery employee Tommy Yong told CNA that will that his company’s operations would definitely end up being affected if his staff were to fall short police screening.
“Finding staff is not easy, ” he mentioned. “But licensing plus police approval tend to be more important, to keep the general public safe. ”
“LOOPHOLES” TO USE?
Mr Yong and other debt collection organizations also said they were worried that underneath the proposed law, debtors would find “loopholes” or excuses to evade payment, by way of example by providing their place of work instead of residential tackle.
The Costs proposes that debt collection companies must not publish or display any notices relating to debts on a property that does not belong to the debtor, or at his workplace or any open public place.
Lenders must also not screen or use any physically threatening phrases, behaviour, writing or even signs.
Several companies however stated they were unconcerned as they have consistently followed a code associated with conduct established by the Credit Selection Association of Singapore.
The organization is the industry’s initial professional organisation representing the debt collection agencies within Singapore and supervising their behaviour and training.
Microsoft Sia of Skyrocket Debt Collection said the lady makes sure her business works within the association’s guidelines, for instance simply by watching body-cam footage from daily trips conducted by her collectors.
“Having concrete laws and regulations which will stipulate how specifically debt recovery must be carried out lawfully, will definitely legitimise the industry in the eyes of the community, ” said JMS Rogers’ Mr Ganesh.
The KX Unit debt collection agency’s senior manager Shawn Lee hopes that after the law will be enacted, people will see debt collectors in a more beneficial way.
“We are not here to produce problems, ” he said. “We are here to settle issues. ”