5 Things Debt Collectors Must Not Do

No business would want to scare his customers away or get negative reviews online.

But at times, businesses do that intentionally or unintentionally when they had to deal with debtors.

What separates good businesses from bad ones is their flawless strategy to recover debt. They may have a separate risk management department calling customers to clear their dues, or rely on debt collector singapore agencies for this purpose.

So, if you hired any such service, make sure it follows the rules and regulations set by the governing body or association. Be careful while choosing any debt collection service because they might end up ruining your brand reputation.

However, you may give a line of action to your debt collector and the debt collection agency and share these 5 things and make sure that your debt collector doesn’t do it.

1. Sending Angry Mob

If you think sending an angry mob to your customers can get you the money, think again. Your debtors have a right to call the police for such unlawful assembly. 5 or more people gathering with an intention to take the money by force or offence is an act of crime in Singapore.

2. Vandalism

It is an act of violence – destroying or damaging a private or public property with or without a motive, and it results in conviction. So, give clear instructions not to use this practice on any of your debtors.

3. Violence

Banging on customers’ doors, shouting, abusing or insulting them, or threatening to beat them, these acts come under violence. Your customers can call the police and later, your debt collector might reveal your name. Therefore, it’s better to choose someone who adopts professional ways to recover the dues.

4. Harassment

If a person causes harassment, distress or alarm to someone by abusing him or using inappropriate vocabulary; or show unacceptable behavior to recover the money owed; all of these acts are illegal. In doing so, there is a higher probability of conviction than getting the money back. Harassment is by no means acceptable irrespective of the cause. So, don’t let them practice it on your customers.

5. Taking Possession of the Things Customers Own

Debt collectors are not allowed to possess or seize the property of the customer without legal notice. So, let the concerned agency know that it must apply in court to get the writ of seizure and sale, before taking possession of the property. Instead of threatening the customer, it is better to send a notice stating the next step, if he fails to repay the amount.

Professional and experienced services understand that there is a great risk in practicing these acts on customers. So, think twice before choosing the right service for debt recovery.

Read about our earlier article on interesting things to know about debt collection.