Recovering $20,000 from an Evasive Debtor in Singapore

We were approached to assist in a personal debt recovery.

Background

In early 2024, Ms. Lee approached Assured Debt Recovery to recover $20,000 loaned to her former classmate, Mr. Wong. The loan was extended as a personal favor when Mr. Wong faced financial hardship due to his failing small business. Although the loan agreement was informal, it was supported by WhatsApp conversations and a bank transfer record.

Mr. Wong initially promised to repay the amount within six months but defaulted. He became unresponsive to Ms. Lee’s calls and messages, repeatedly claiming he needed “more time.” When Ms. Lee made house visits, Mr. Wong avoided her by not answering the door. Frustrated, Ms. Lee sought professional assistance.

Initial Assessment

1. Verifying the Debt

Assured Debt Recovery verified the legitimacy of Ms. Lee’s claim by:

• Reviewing WhatsApp messages, which documented Mr. Wong’s acknowledgment of the loan and repayment promise.
• Examining bank transfer records to establish the loan transaction.

2. Profiling the Debtor:

Through a detailed investigation, Assured Debt Recovery discovered that:

• Mr. Wong had relocated from his registered address without notifying creditors.
• He was operating sporadic freelance work to avoid regular income tracking.
• He had no declared bankruptcy but was intentionally avoiding repayment.

Recovery Actions Taken

1. Formal Demand Letter:

A formal letter of demand was sent to Mr. Wong’s last known address and email. When no response was received within the stipulated 14-day period, Assured Debt Recovery escalated their efforts.

2. Multiple Site Visits:

– Recovery agents conducted visits to Mr. Wong’s last known residence and workplace.
– Neighbors confirmed that Mr. Wong occasionally returned home late at night but avoided contact during the day.

3. Stakeouts and Contact Efforts:

Assured Debt Recovery agents initiated discreet surveillance outside Mr. Wong’s residence to confirm his presence.

• Once Mr. Wong was located, agents made direct contact and presented the evidence of the loan, urging him to address the debt.

4. Mediation and Negotiation:

• Mr. Wong initially denied his ability to repay but, under pressure from Assured Debt Recovery’s persistence and evidence, agreed to a mediation session.

During mediation, a structured repayment plan was negotiated:

• An initial lump sum of $8,000 within 30 days.
• Monthly installments of $1,200 for the remaining $12,000 over 10 months.

5. Monitoring Compliance:

• Assured Debt Recovery monitored each payment to ensure adherence to the repayment schedule.