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Dear Editor,
I refer to the report, “Stricter rules for debt collectors may create ‘loopholes’ for debtors to dodge payment” (TODAY, June 16).
We should analyse the issue of financial loans from a wider or deeper perspective.
Usually, most authorised moneylenders or loan agencies advertise their stratagem of loan services by advocating, “fast cash, instant approval, a low or attractive interest rate of xx% p.a. with flexible repayment,” to attract loan borrowers.
Most of the time, those borrowers who need money urgently for whatever reasons would go to the smaller moneylenders because their lending procedures are less stringent and tedious in terms of assessment and valuation of the potential debtors, but their loan policy, terms, and conditions are ambiguous and harsh if repayment could not be fulfilled.
Worst, some recalcitrant resort to illegal moneylenders or “loan sharks” for fast cash without due consideration of any adverse consequences.
These financial loan operators usually engage debt collectors to collect debts on their behalf
after the customers’ default on their loan payments.
These debt collectors are either in the form of registered companies or unregistered individuals. Generally, their tactics of debt collection are unprofessional, irrational, and harsh in the eyes of the public.
For example, some debt collectors used to display the prominent wordings of ‘debt collection’ on their mobile panel to threaten their debtors, as it can clearly startle the debtor’s neighbours (who live beside or live on the same floor) and create a public nuisance. If the debt payment was not collected or is unsuccessful, the debt collectors might video the whole collection process and thereafter post it online to harass, disgrace and smear the specific debtor.
In view of the debt collectors’ unscrupulous and threatening operating tactics, it is imperative for the Government to take tougher action and stricter rules against the irresponsible debt collectors. This will greatly prevent the occurrence of public nuisance.
Hence, it is significant for all the moneylenders to scrutinise or assess thoroughly the financial backgrounds and borrowing history of their potential borrowers prior to granting loan approval.
The views expressed here are those of the author/contributor and do not necessarily represent the views of The Independent Singapore.