Harassment by Debt Collectors

In Singapore, there are many cases of debt collectors unlawfully harassing debtors. It is important to be aware of the fact that if you are an individual who owes something to someone, collection agencies DO NOT enjoy special privileges. The same laws apply to them as with everyone else. Therefore, if a debt collector harasses you, the first and right step to take is to call the police.

In April 2019, a director of a registered debt collection agency was found guilty of illegal harassment. Jasmine Tan Sue was jailed for eight weeks and fined $1,000 to two counts of abetment for causing harassment. Harassment cases can cause distress, and so you should seek proper representation in court by hiring a lawyer who can help you take the necessary steps to deal with such cases.

Remember that there is always a manageable way to clear your debts. Negotiating an instalment plan is always an option, and you may seek advice about this from your lawyer. In cases where the creditor is a bank, your legal advisor may be able to help lower your interest rate.

Examples of common harassment cases include:

• Incorrectly stating the amount owed: Claiming a client owes $50,000 while the exact amount is $15,000;
• Defamation: For instance, video recording a person as they attempt to collect a debt and then posting it on social media;
• Harassment: Trying to collect a debt by breaking the law;
• Threatening jail: For example, telling you that a person will go to jail if the debt is not paid.

In Singapore, the legal debt collection agencies must follow the industry’s code of conduct. This code was crafted by the Credit Collection Association of Singapore (CCAS) to support the debt collection agencies and the debtors who try to resolve disputes. It is important to note, however, that the Credit Collection Association does not have the authority to enforce the code of conduct.

None of the Singapore laws regulate the debt collection agencies explicitly. Still, there are some types of behaviour that collection agencies need to restrain from doing.

Unlawful assembly refers to a situation wherein five or more people were to unite with a common intention or objective to perform any of the criminal conduct listed under section 141 of the Penal code. This group of people may face the penalties imposed under section 143.

The Protection from Harassment Act provides more details on what collection agencies cannot do to collect a debt. The Act imposes that it is forbidden to use threats, abusive or insulting words or even behaviour to cause fear to someone. It is also forbidden to make a person believe that immediate unlawful violence will be used against him or her if a debt is not paid.

A debt collector may be guilty of an offence if he or she unlawfully stalks the debtor and causes him or her to be harassed, scared, or distressed in the process.

Debt collectors are not allowed to threaten debtors with any form of abuse so that the debtor will pay back the debt.

Different acts of vandalism are also forbidden as an instrument to collect the debt. For instance, if the debt collector sprays paint on someone’s walls, throws paint at the wall, or even put any posters or something similar, they will be found guilty of vandalism.

If a debt collector disturbs, troubles, or persecutes you persistently, his or her actions may lead to a penalty due to harassment.

To force you to pay, some debt collectors will try to convince you that they can take your car or confiscate your property. This is only possible if they obtain a Writ of Seizure and Sale from Singapore courts. If they do not have proof of such document in their possession, know that they have no legal rights to take anything from you.

Debt collectors cannot pretend to be government agents, such as IRAS or the police. They are also not allowed to put up fake websites that mimic existing government agencies or use false government letterheads to recover any debts.