Unpaid debts are a common challenge in both personal and business dealings. Whether it’s a loan to a friend, overdue invoices from a client, or outstanding rental payments, chasing a debtor can be time-consuming, stressful, and often unsuccessful without professional help.
This is where a debt collector in Singapore comes in. In this guide, we’ll explain exactly what a debt collector does, how debt collection works in Singapore, and when it’s best to engage one.
A debt collector in Singapore is a licensed professional or agency hired to recover money owed to individuals, companies, or organisations. Debt collectors work on behalf of creditors to negotiate repayment from debtors while complying with Singapore’s strict legal guidelines.
Debt collectors can handle various types of debts, including:
Hiring a debt collector Singapore can make sense in situations such as:
The earlier you act, the higher the chances of recovering the full amount.
In Singapore, debt collectors operate under a structured, legal, and ethical process to ensure that debts are recovered efficiently and fairly. At Assured Debt Recovery, our methods are designed to balance firmness with professionalism, ensuring your case is handled effectively while protecting your reputation.
The process typically begins with a comprehensive case assessment. This involves reviewing all relevant documents such as contracts, invoices, payment records, and any communication history with the debtor. The aim is to confirm the legitimacy of the debt, assess the debtor’s financial situation, and develop a strategic approach tailored to the case.
Once the details are verified, the next step is usually issuing a Letter of Demand (LOD). This formal notice outlines the debt amount, repayment deadline, and possible consequences if the debtor fails to comply. In many cases, a clear and professional LOD is enough to prompt repayment, as it signals serious intent.
If the debtor does not respond to the LOD, the debt collector moves to direct engagement. This can include professional phone calls, official correspondence, and, when appropriate, in-person visits conducted during reasonable hours. All interactions are handled in accordance with Singapore’s laws, without harassment or intimidation.
During this stage, the debt collector’s primary goal is negotiation and settlement. Many cases are resolved through full payment, a partial settlement, or a structured instalment plan that both parties can agree to. By maintaining professionalism, debt collectors can often secure payment without escalating the matter.
In situations where the debtor continues to ignore requests for repayment, the case may proceed to legal escalation. Depending on the debt amount, this could involve filing a claim with the Small Claims Tribunal, initiating civil litigation, or enforcing a court judgment through methods like a Writ of Seizure or Garnishee Order.
Throughout the entire process, a reputable debt collector in Singapore operates transparently, keeps the creditor informed, and ensures that all actions are in full compliance with Singapore’s debt collection laws.
In Singapore, debt collectors must follow strict laws under the Protection from Harassment Act (POHA) and other relevant regulations.
Debt collectors cannot:
Debt collectors must:
Working with a professional debt collector offers several advantages:
✔️ Higher Recovery Success
Experienced collectors use proven negotiation techniques to secure payment.
✔️ Saves Time and Resources
You can focus on running your business or daily life while the collector manages the process.
✔️ Legal Compliance
Avoid the risk of violating debt collection laws.
✔️ Professionalism
Collectors act as an impartial third party, maintaining your reputation.
At Assured Debt Recovery, we specialise in:
Our approach is firm but respectful, ensuring maximum recovery while protecting your reputation.
If you are dealing with an unpaid debt, don’t wait until it becomes a total loss. The sooner action is taken, the better your chances of full recovery.
Contact Assured Debt Recovery today to discuss your case with a licensed debt collector Singapore and find the best solution.