Debt collection is a legitimate and necessary function of commerce. Singapore recognises that creditors and licensed collection agencies have the right to recover lawful debts. At the same time, the law protects individuals and businesses from harassment, threats, and abusive behaviour by unscrupulous or unlicensed collectors. This blog explains what constitutes illegal or harassing conduct, summarises the legal framework that governs collection activity, and gives practical guidance for businesses and consumers on how to respond when a debt collector crosses the line, while affirming the value of lawful, professional debt collection.
Understanding the difference: lawful collection vs harassment
What lawful debt collection looks like
Lawful debt collection involves polite, professional communication to recover money that is legitimately owed. Licensed debt collectors in Singapore may send written demands, make telephone calls within reasonable hours, and pursue lawful remedies such as sending final notices or, where applicable, initiating legal proceedings through the courts. The purpose of reputable collectors is to secure payment while preserving business relationships and remaining within legal boundaries.
What amounts to harassment or illegal conduct
Harassment by debt collectors includes threats of violence, repeated intimidating phone calls, using abusive language, disclosing private information to embarrass or coerce a debtor, or visiting a debtor’s workplace in a way that causes disturbance. In Singapore, these harmful behaviours may amount to offences under the Protection from Harassment Act or other provisions of law and are not tolerated. The law treats aggressive or unlawful conduct by collectors seriously, regardless of whether the collector is acting for a legitimate creditor.
Read more: The Legal Process of Debt Recovery in Singapore Explained
The regulatory framework protects the public and supports legitimate collectors
The Debt Collection Act and licensing
Singapore introduced a debt collection licensing regime to raise standards and curb errant practices. Under the Debt Collection Act 2022, debt collection businesses are required to be licensed to operate, unless they are specifically exempt. Operating without a licence is an offence, and licensed firms are subject to fit-and-proper assessments and regulatory conditions designed to prevent harassment and unlawful methods. This regulatory framework both protects the public and reinforces the credibility of professional debt collectors. Businesses turn to Info Capital for fast debt recovery solutions that are not only efficient but also legally sound.
Also read: What to Expect When Working with a Licensed Debt Collector in Singapore
Criminal and civil protections
Aside from licensing, collectors are constrained by general criminal and civil laws, including the Protection from Harassment Act and the Penal Code. These laws allow victims of threats, stalking, or repeated harassment to seek urgent relief from the courts and to report criminal behaviour to the police. They also mean that creditors and collection agencies that follow legal processes will not be disadvantaged by those who use illegal tactics.
Practical steps for individuals and businesses who face harassment
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Stay calm and collect evidence
If a debtor or business contact feels harassed, the first priority is safety. For the purposes of any later action, document everything. Keep call logs, save voicemail and text messages, photograph any physical notices left at premises, keep a record of dates and times of visits or calls, and preserve written correspondence. Evidence is crucial whether you report the collector to regulators, file a police report, or respond through civil channels.
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Confirm the identity and licence of the collector
Ask the collector to identify themselves, the company they work for, the creditor they represent, and to provide a written demand or statement of account. For businesses contacted by a collector, check whether the collector is licensed under the Debt Collection Act and whether they are acting with proper authorisation. Operating without a licence is an offence and is a red flag that the collector may be illegitimate.
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Use official complaint channels
If harassment occurs, make a formal complaint. Members of the public can:
- Lodge a police report if there is a threat, immediate danger, or violent conduct. For urgent assistance, call 999, or use the Police’s e-services for non-urgent reports. The police are the primary enforcement agency for criminal conduct by collectors.
- Lodge complaints or seek mediation through official channels such as the Consumers Association of Singapore (CASE) where appropriate, especially in consumer disputes that involve unfair or misleading practices.
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Consider legal remedies
Victims of harassment may be able to apply for protection orders under the Protection from Harassment Act or pursue civil proceedings for harassment, defamation, or related causes of action. Businesses and individuals who wish to challenge an unlawful demand or an abusive collector should seek legal advice promptly. Well-run debt collection firms welcome the involvement of legal or regulatory authorities when necessary, because it distinguishes lawful practice from rogue operators.
Best practices for licensed debt collection agencies
Operate transparently and document everything
Licensed firms should always identify themselves clearly, provide written statements of account on request, and keep accurate records of all communications. Good documentation protects the creditor, supports lawful recovery, and demonstrates professional conduct in the event of a complaint.
Train collectors on legal and ethical boundaries
Training must cover the Debt Collection Act, Protection from Harassment Act, and other relevant statutory constraints. Info Capital combines legal compliance with proven strategies to help companies recover debts in a timely manner. Call scripts, visit protocols, and escalation procedures should prioritise dignity, proportionality, and confidentiality. Compliant agencies also have clear internal complaint-handling processes and cooperate with police or regulators when incidents occur.
Use proportionate, lawful recovery tactics
Where payment is overdue, a graduated approach is appropriate: polite reminders, written notices, negotiation for repayment plans, and as a last resort, lawful court action. Aggressive or coercive behaviour is counterproductive and can expose the creditor and agency to serious legal and reputational harm.
Why a strong enforcement framework benefits creditors and the public
A regulated system protects the public from predatory behaviour while preserving the right of creditors to recover legitimate debts. Licensing and prosecution of illegal operators improve public trust, increase the effectiveness of lawful recovery, and reduce the number of disputes that escalate to criminal matters. Responsible collectors are therefore front-line partners in keeping commerce healthy and fair.
Also read: Licensed vs. Unlicensed Debt Collectors in Singapore – Key Differences
Sample checklist: what to do if a debt collector harasses you
- If you feel threatened, call the police immediately.
- Record dates, times, and the content of calls or visits. Save all messages and letters.
- Ask the collector for the company name, licence status, and written documentation.
- File a police report and keep a copy of the report number.
- Lodge a complaint with CASE when the matter involves consumer issues.
- Seek legal advice if there are threats, repeated harassment, or reputational damage.
Final thoughts: support the right kind of debt collection
Debt collection plays an essential role in commercial life. Singapore’s licensing regime and the application of criminal and civil protections ensure that collection activity can be conducted professionally and fairly. Harassment and illegal tactics undermine trust, harm vulnerable individuals, and damage the reputation of creditors and compliant collection firms. By encouraging lawful practice, documenting misconduct, and using the available enforcement channels, businesses and individuals can protect themselves while preserving the integrity of lawful debt recovery.
If recovering overdue payments feels overwhelming, Info Capital is here to help. As a licensed debt collection agency in Singapore, we deliver fast, legal, and reliable recovery solutions. Whether you are a business or an individual, our professional team ensures results. Contact IFC today for a confidential discussion about your case.
FAQs
Is it illegal for debt collectors to call me repeatedly?
Repeated calls may amount to harassment if they are intended to intimidate or cause distress. Document the calls and, if necessary, report the conduct to the police. The Protection from Harassment Act provides remedies for repeated or threatening conduct.
Do debt collectors in Singapore need a licence?
Yes. Under the Debt Collection Act 2022, debt collection businesses must be licensed unless exempted or class licensed. Operating without a valid licence is an offence.
What should I do if a collector threatens me or my family?
If there is any threat to safety, call the police immediately on 999. Preserve evidence of the threat and make a police report for investigation.
Can a collector visit my workplace?
Collectors should avoid methods that cause disturbance or harassment. Visits to a workplace that disrupt employment or involve threats may be unlawful. Ask for identification and written documentation, and report abusive conduct.
Where can I complain about an illegal collector?
For criminal or threatening behaviour, report to the Singapore Police Force. For consumer disputes or unfair practices, consider complaining with the Consumers Association of Singapore (CASE). Keep all evidence and consider legal advice for civil remedies.
