Regulation of Debt Collection Practices in Singapore

Introduction

The Debt Collection Act (“Act”) was passed by Parliament on 13 September 2022 following a rise in complaints from the public. With effect from 1 March 2024, all debt collection companies must be licensed to carry out debt collection activities. It will be an offence to do so without a valid licence. Minister of State for Home Affairs Sun Xueling said that the number of Police reports lodged against the conduct of debt collection businesses and debt collectors remained high, with an average of 367 reports lodged each year from 2018 to 2021. 

The reports were primarily against debt collection tactics aimed at pressuring debtors into payment by causing public embarrassment and inconvenience to them. 

This article explores the key objectives, changes brought about the act and the implications for corporations with collectable debts.

Please click here to read the article.

About the Authors

Vernon Voon
Partner
RHTLaw Asia
+65 6381 6835
vernon.voon@rhtlawasia.com

Nethra Kaur
Associate
RHTLaw Asia
+65 6381 6923
nethra.kaur@rhtlawasia.com