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Stricter rules for debt collectors may create 'loopholes' for debtors to dodge payments, firms say

Stricter rules for debt collectors may create 'loopholes' for debtors to dodge payments, firms say
Proposed laws to regulate debt collection activities in Singapore could help raise standards across the industry, but some companies worry that there are unintended effects such as debtors using these laws to dodge payments. 

The Ministry of Home Affairs (MHA) announced in a statement on Wednesday (June 15) that it is looking to enact laws to regulate debt collection activities. 

Some proposals included the introduction of licensing and approval regime for debt collection companies and their employees.

This would include a screening process by the police, which will be given the powers to grant or refuse license applications, modify licensing and approval conditions, and suspend or revoke licences or approvals. 

Among other things, a debt collector must also verify that the subject of their activities is the debtor and not "display or use any physically threatening words, behaviour, writing, sign or visible representation".

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