The Debt Collection Act (2022) was introduced to regulate the debt collection industry and prevent abusive practices. It requires debt collectors and agencies to be licensed and undergo a screening process. Under this Act, collectors who threaten a debtor’s physical safety may face up to one year in jail and a $10,000 fine, with harsher penalties for repeat offenders. They must also comply with other laws like the Penal Code and the Protection from Harassment Act (2014).
Despite the regulations, illegal and abusive practices may still occur. These include:
- Inflicting Injury: Physically hurting a debtor is a criminal offence. Simple harm can lead to up to 2 years in jail and/or a $5,000 fine, while severe injuries (grievous hurt) can attract up to 10 years’ imprisonment, along with fines or caning.
- Threats and Intimidation: Using threats, profanities, or intimidating gestures (like pretending to splash paint) may be considered harassment or criminal intimidation, depending on the severity and impact.
- Vandalism: Acts like paint splashing or posting notices on walls are punishable under the Vandalism Act (up to 3 years in prison, a fine, and possible caning), and may also be considered public nuisance or mischief under other laws.
- Unlawful Stalking: Repeatedly following or harassing a debtor in person or electronically (e.g., emails, surveillance) may constitute unlawful stalking, especially if it causes distress and occurs frequently.
- Unlawful Assembly: If five or more debt collectors gather and use force or intimidation, they may be charged with unlawful assembly, punishable by up to 2 years in prison, a fine, or both.
What Can Debtors Do?
Debtors facing harassment should:
- Call the police immediately for protection.
- Seek clarification on whether the conduct is criminal.
- Apply for a Protection Order or an Expedited Protection Order under the Protection from Harassment Act.
File a complaint with the Credit Collection Association of Singapore (CCAS)—only if the agency is a member.