Category: Debt Recovery

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…

In times of financial difficulty, especially during emergencies, you might need to borrow money quickly. If you lack sufficient savings or liquid funds, you could consider borrowing from friends or family with a simple IOU or opt for a personal loan from a licensed moneylender—the focus of this guide. Who Are Licensed Moneylenders? Under the…

Do You Need a Licence to Lend? Under the Moneylenders Act, lending money informally to friends or family doesn’t require a licence—unless it becomes a regular, business-like activity. Is Charging Interest Legal? Yes, you can charge interest on personal loans to friends and family, provided it’s not part of a moneylending business. There’s a legal…

Debt recovery typically involves three main steps: This is a general guide and not legal advice. Step 1: Profiling and Negotiation Before initiating legal proceedings, gather as much information as possible about the debtor: In cases where legal action is not economically viable, negotiating a repayment plan may be a better alternative. However, legal advice…

Falling into debt can be overwhelming, especially when repayment becomes a struggle. This article explains what happens when you default on a loan, and what options are available to manage the situation. 1. What is an “Event of Default”? An event of default occurs when a borrower fails to meet terms set in a loan…