Debt Collection Agencies in Singapore and What Are Their Powers
Debt collection agencies are hired by companies to collect their bad debts. Many companies have their own debt collection branches for this, but many others would prefer to hire the services of specialized agencies. Debtors are often intimidated or fearful of debt collection agencies, as they are unaware of the powers assigned to such agencies. Of course, there are some unscrupulous agencies, which make debtors believe that they have greater powers than they really do, but that does not help the state of affairs Debt Recovery Singapore.
Debt collection agencies are paid in two ways. One is to pay them a fixed amount, while the other is to pay them a percentage of the collected debt. There are agencies that actually buy some debt outright. This simply implies that if a debtor owes a company money, and that company sells the debt to a debt collection agency, the debtor would be legally obligated to pay that debt to the agency. By selling to an agency, the company gets a percentage of the total debt. Any amount that the agency collects from the debtor is retained by the collector. Since the agency needs to raise more funds than it paid the company to buy that debt, it employs all sorts of tactics and often indulges in some unwarranted practices.
Debt collectors are not allowed to enter your premises or take possession of your belongings. In fact, they can only demand money from you. The point is that they keep calling the debtor over and over again, and dishonest debt collectors have been known to threaten debtors with the intent of collecting fees. On the other hand, a professional debt recovery agency would try to develop a helpful relationship with their debtors and thus start the negotiation process to recover the debts. In many of these cases, the debtor can expect a portion of the debt to be cancelled.
Debt collectors are not expected to visit debtors at difficult times, such as too early in the morning or too late at night. While they may visit you at your workplace, they should stop when they are informed that you cannot accept personal calls at your workplace. Debt collectors are not allowed to harm or threaten you in any way or use abusive language. They also cannot make false claims about your debt, or tell lies about your legal rights or official status, take your assets, or have you arrested.
The US has implemented the Fair Debt Collection Practices Act to regulate the operations of debt collection agencies. Several states have created special debt collection laws, and in general, when state laws are thought to be more restrictive compared to the FDCPA, then the former apply. Similarly, debt collection agencies in the come under the Office of Fair Trading with guidelines on how debt collectors can operate. It also gives examples of unfair practices, such as bullying or acting as if they have more power than they really do Debt Collection Agency Singapore.
If these backlogs are not processed properly, they often end up costing the company more losses and could well end up as write-offs. A professional agency can give back to the credit manager many hours of his valuable time, allowing him to let the specialists deal with the probable problem debtors, allowing the staff of the department to continue with the management of the daily cash flow, which is the life blood of any business .