Recovering SGD 80,000 from Client’s Ex-Girlfriend

Background

A client engaged Assured Debt Recovery (ADR) for assistance in recovering an SGD 80,000 debt from his ex-girlfriend. The funds were provided during their relationship as a loan to support her financial difficulties and business endeavors. After their breakup, the debtor denied the existence of the loan, claiming the money was a gift.

With no formal written agreement, the client struggled to recover the debt and turned to ADR for professional intervention.

Challenges

1. Lack of Written Agreement: The absence of a signed loan agreement complicated the legal standing of the debt.

2. Debtor’s Non-Responsiveness: The debtor ignored calls, emails, and messages regarding repayment.

3. Debtor’s Disappearance: She moved residences and ceased using her known phone number, making her difficult to locate.

ADR’s Approach

1. Initial Evidence Assessment:

ADR’s team worked closely with the client to gather all possible evidence, including:

• Bank transfer records indicating the flow of funds.
• Text messages in which the debtor referred to the money as a loan.
• Text messages discussing partial repayment terms.

This evidence created a compelling case, despite the absence of a formal contract.

2. Skip Tracing:

ADR deployed its skip tracing team to locate the debtor. This involved:

• Using public and private databases to track the debtor’s movements.
• Contacting mutual acquaintances to obtain updated information.
• Conducting surveillance and research to confirm her new residence.

Within three weeks, ADR successfully identified the debtor’s current address in a suburban area of Singapore.

3. Face-to-Face Visits:

ADR made multiple visits to the debtor’s residence and workplace. These visits were conducted professionally to avoid any legal issues, ensuring compliance with Singapore’s debt recovery regulations.

• On the first visit, the debtor refused to meet the ADR representatives.
• On subsequent visits, the team left written notices explaining the situation and potential legal consequences.
• On the third visit, the debtor agreed to a discussion, acknowledging partial responsibility for the debt.

Negotiation and Mediation:

ADR facilitated negotiations between the client and the debtor. The debtor expressed her financial inability to repay the full amount immediately but agreed to settle.

• A lump sum payment of 30% (SGD 24,000) was agreed upon and paid within a week.
• The remaining SGD 56,000 was split into monthly installments over 18 months.
• ADR drafted a legally binding agreement signed by both parties.

Outcome

The case concluded with the following results:

• The debtor paid the initial lump sum of SGD 24,000 within 7 days.
• Monthly payments of SGD 3,111 commenced, with ADR monitoring the repayment schedule.
• The client successfully recovered the full SGD 80,000 within the agreed timeframe.

Key Takeaways

1. Skip Tracing as a Key Tool: Locating unresponsive debtors is crucial in cases where individuals attempt to evade repayment.

2. Persistence in Field Visits: Professional, repeated visits can encourage a debtor to engage and negotiate, especially when evidence of the debt is strong.

3. Flexible Repayment Solutions: Offering manageable repayment options, such as a lump sum followed by installments, increases the likelihood of full recovery.

Assured Debt Recovery’s professional approach, persistence, and commitment to ethical practices ensure success, even in challenging cases like this one