Protection from Harassment Act (POHA):
The Protection from Harassment Act (POHA) draws clear boundaries surrounding communication for debt collectors.
As mentioned earlier, creditors are prohibited from using threatening, abusive, or insulting language. They also should not engage in conduct or behaviour that causes harassment, alarm, or distress.
Consumer Protection (Fair Trading) Act:
The Consumer Protection (Fair Trading) Act (CPFTA) protects consumers from misleading practices and unfair treatment.
Creditors must provide accurate information about the debt, including the amount owed and their identity.
Right to Dispute a Debt:
As a debtor, you have the right to dispute a debt if you believe there are discrepancies in the amount claimed.
Creditors must provide evidence and details supporting the validity of the debt when requested by the debtor.
Right to Written Notification:
Creditors are required to send written notices to debtors informing them of the debt owed.
These notices should include necessary details such as the total amount owed, and the creditor’s information.
Privacy Protection:
Debtors have the right to privacy in debt collection.
As mentioned, creditors are not allowed to disclose confidential details about the debt to third parties without formal authorisation from the debtor.
No Misleading or Unfair Practices:
Creditors are prohibited from engaging in misleading or unfair practices.
For example, misrepresenting the total amount owed, falsely threatening legal action, or employing deceptive tactics to coerce payment.
Cease and Desist Requests:
Debtors have the right to request that creditors cease and desist further communication.
Once a written request is made, creditors should refrain from contacting the debtor.
The exception being to acknowledge the request or inform about legal actions.
Reporting to Authorities:
Debtors can report illegal debt collection practices to relevant authorities such as the Ministry of Law or the Consumers Association of Singapore (CASE).
Credit Collection Association of Singapore (CCAS) exists to establish and enforce a code of ethics amongst credit agencies.
Reporting cases of illegal debt collection practices helps in taking necessary actions against creditors who violate regulations.
Dispute Resolution:
Consumers have access to dispute resolution mechanisms, including the Small Claims Tribunal.
The Small Claims Tribunal acts as an avenue for resolving disputes related to debts of a certain amount without incurring substantial legal costs.
Fair Debt Collection Practices:
Creditors must adhere to fair and ethical debt collection practices, treating debtors with dignity and respect.
Communication should be professional, and debt collectors should provide reasonable opportunities for the debtor to make payments.
