The Credit Collection Association of Singapore (CCSA) restricts the capabilities of debt collectors by a code of conduct. However, since a moral code is not a law, consumers must know their rights.
Debt collection can become a messy affair, and here’s what you should know about your debt collectors’ limitations.
What can a debt collector do?
Anyone can legally lend friends and family money upon an agreeable interest rate.
The debtors should enclose the deal along with the terms in writing. They have to initiate the claims within the stipulated repayment date.
If they fail to do so, the borrowers are no longer obligated to repay.
Borrowers can also be excused from repayment if no written agreement exists between the two parties.
Debtors can also approach you at home or through media communication. They must follow decorum while doing so.
They are legally allowed to discuss your loan details with your wife or children of age in your absence.
Debt collectors also help arrange repayment schemes with you. You can negotiate the terms of repayment and set up an installment plan.
Debt collectors cannot behave like goons and compel you for money. They are subject to Protection from Harassment Act, which incarcerates them for malpractice and intimidation.
If you can prove that you cannot repay the amount immediately, debt collectors must work out a scheme with you.
It can be alternate payment options, asset reallocation, etc. The CCSA mandates collectors to accept any repayment plans that are feasible to both.
What can a debt collector not do?
While the mainstream media portrays debt collectors as a hostile band of thugs, they can go to prison for behaving like that.
The Protection from Harassment Act ensures the implementation.
They cannot harm you or your family members in any way.
The entire process should be compelling but amicably.
Here are some boundaries that debt collectors cannot cross –
Stalking you by following you on the streets, loitering around your premises, or circulating any compromising images. However, they can look you up on Facebook.
Threatening you or resorting to vandalism – collectors cannot damage property or injure you in any form.
Collectors cannot impersonate government officials or police officials.
They cannot use spoof sites that mimic government or tax agency letterheads to fool you into repaying.
If your debtors resort to any of the mentioned illegal means to collect debts, you can file a police complaint.
Remember that harassment is never an option under any circumstances. It is best to know your rights and what power you exercise in your situation.
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