Receiving a call from a debt collector can be unsettling, stirring emotions like fear and confusion. In Singapore, knowing your rights and understanding how to respond calmly is the first step to protecting yourself. Just as important, it’s about knowing your options to resolve debt before things escalate.
This article will explain your rights when dealing with debt collectors, strategies for managing the situation, and how professional consultants at EDUdebt can advise on how to address your debts through legally approved solutions in Singapore. By taking the correct legal steps, debtors can eventually put an end to harassment and regain financial peace.
What Is a Debt Collectors or Debt Collection Companies in Singapore?
Debt collectors are professionals engaged by banks, licensed lenders, or financial institutions to recover overdue debts. Unlike illegal moneylenders, debt collectors in Singapore must operate strictly within the law — they are prohibited from using threats, harassment, or disclosing your debt details to others.
To operate legally, debt collection businesses must meet specific licensing requirements, including approval for their company as well as individual licences for debt collectors. Each collector must hold a valid licence; otherwise, their collection activities are considered unlawful.
While the primary role of a debt collector is to recover money owed, debtors still have important rights. Understanding the distinction between legal collection practices and harassment helps you respond confidently and protect yourself.
If you find yourself receiving constant calls from debt collectors, it may be a sign that you need to explore structured debt solutions — such as repayment restructuring or debt management plans — instead of handling collectors one call at a time.
Understanding Debt Collection Agencies in Singapore
In Singapore, debt collection agencies are companies or organisations engaged to recover debts on behalf of creditors. Under the Debt Collection Act 2022, all businesses conducting debt collection activities must hold a valid licence to operate legally. Licence applications are processed through the GoBusiness portal, ensuring strict regulatory oversight.
Debt collection agencies generally fall into two categories:
- Licensed Debt Collection Companies – These firms undergo thorough vetting by the police and relevant authorities to ensure they meet compliance standards and operate professionally.
- Class Licensees – These are financial institutions already regulated by other government agencies. They include banks, merchant banks, licensed credit card or charge card issuers, finance companies, and licensed or exempt moneylenders. Such entities are permitted to carry out debt collection activities within their respective businesses.
All debt collection companies and agencies must comply with the Debt Collection Act, which prohibits harassment, intimidation, or other improper practices. In addition, they are required to observe related laws such as the Companies Act and the Consumer Protection Act, ensuring that the debt recovery process remains lawful and transparent.
For individuals, understanding how these agencies are classified and regulated is crucial. It helps you identify legitimate debt collection agencies and avoid falling victim to unlawful practices.
Your Rights Under the Debt Collection Act When Dealing with Debt Collectors
In Singapore, the Debt Collection Act 2022 sets clear rules on what constitutes debt collection activity — including contacting debtors, requesting, demanding, or collecting payment. The Act also defines the roles of the chief executive officer in overseeing compliance within debt collection businesses, and the licensing officer who is responsible for issuing licences, ID cards, and ensuring regulatory compliance. Knowing these rights helps you stay calm and protect yourself.
Debt collectors can:
- Engage in debt collection activity such as contacting you by phone, email, or formal letters.
- Request repayment of outstanding debts.
- Provide written notices explaining the details of your debt.
But they cannot:
- Threaten, harass, or intimidate you in any way.
- Disclose your debt information to friends, family members, or employers.
- Operate as loan sharks or conduct debt collection activity without a valid licence issued by the licensing officer.
By understanding these rights and the roles of the chief executive officer and licensing officer in regulating debt collection activity, you can safeguard your peace of mind and ensure that all interactions remain fair and lawful.
How to Respond When a Debt Collector Contacts You
If you receive a call from a debt collector, it’s important to stay composed and approach the situation with a clear plan. Follow these steps to remain in control:
- Stay Calm and Collected – Take a moment to breathe and avoid emotional reactions.
- Request Written Proof – Always ask for documentation that confirms the debt is valid.
- Avoid False Promises – Do not commit to repayments you cannot afford.
- Document Everything – Keep detailed records of dates, names, and all conversations.
At this stage, seeking professional guidance can make a significant difference. A trusted debt advisory service can help you navigate complex debt issues and protect your rights. EDUdebt offers free consultations to walk you through your options, such as restructuring repayments that best fit your current situation.
Common Mistakes to Avoid
Many people unintentionally make their situation worse by falling into these traps:
- Ignoring Collectors – This can escalate matters into legal action.
- Getting into Arguments – Staying calm and professional helps keep communication constructive.
- Making Unrealistic Promises – Only agree to terms you can realistically manage.
- Borrowing from Loan Sharks – High-interest lenders will trap you in a cycle of debt.
Avoiding these mistakes keeps you in control and prevents unnecessary financial stress.
When to Seek Help: Signs Debt Is Out of Control
It’s time to get professional support if you notice any of the following warning signs:
- Frequent calls from multiple debt collectors.
- Difficulty keeping up with even the minimum monthly instalments.
- Relying on new credit to pay off old debts.
- Debt-related stress affecting your mental health or family life.
If these situations sound familiar, don’t wait. EDUdebt’s consultants can assess your debt situation and advise you on legal debt solutions such as Debt Management Programmes (DMPs), Debt Consolidation Plans (DCPs), or the Debt Repayment Scheme (DRS), which can help you restructure your repayments and regain control of your finances.
Debt Collection Industry Trends in Singapore
In recent years, Singapore’s debt collection industry has undergone significant changes. Since the implementation of the Debt Collection Act 2022, compliance and professionalism standards for the sector have been raised considerably. Debt collection businesses are now required not only to hold valid licences as legitimate business entities, but also to establish proper internal management systems to ensure all activities related to collecting debts and collecting money owed comply with legal requirements and industry standards.
Technology adoption is another major trend shaping the industry. Many debt collection businesses are increasingly leveraging tools such as data analytics and artificial intelligence to improve efficiency and accuracy. These innovations allow agencies to better identify high-risk debts, optimise the process of collecting debts, and minimise unnecessary disruption to debtors.
At the same time, debtor protection has become a central focus. Under the Debt Collection Act, agencies must provide clear and transparent information on processes and fees, while strictly avoiding threats, harassment, or other unfair practices. Regulatory bodies such as the Monetary Authority of Singapore (MAS) and the Consumer Protection Commission have strengthened oversight to ensure that all debt collection activities, including collecting money owed, remain both lawful and ethical.
Overall, the debt collection industry in Singapore is moving toward a more regulated, professional, and people-centric approach. Debt collection businesses and debt buyers alike must continually enhance professional service quality and compliance to remain competitive. For debtors, this evolution means greater legal protection and clearer, more transparent processes when dealing with professional service providers such as debt collection agencies.
How EDUdebt Helps You With Handling Debt Collector Situations
EDUdebt offers practical, tailored solutions to help Singaporeans break free from the stress of persistent debt collection and regain financial control. Our approach includes:
- Free Debt Analysis – We start with a complimentary review of your financial situation to understand your unique challenges.
- Personalised Plans – Based on your needs, we will explore solutions together — such as Debt Management Programmes (DMPs), Debt Consolidation Plans (DCPs) or Debt Repayment Scheme (DRS) — to determine what best fits your circumstances.
- Repayment Restructuring – Depending on the debt solution that best fits your situation, your debts will be restructured into monthly instalments that are affordable and sustainable, allowing you to focus on rebuilding your financial stability.
With EDUdebt, you’re not just managing debt — you’re taking back control of your future, and you won’t be doing it alone. Our services include guiding you every step of the way until you achieve debt freedom.
Take Back Control Before It’s Too Late
Debt collectors in Singapore are professionals appointed by banks, licensed lenders, or financial institutions to recover overdue debts. Under the Debt Collection Act 2022, any debt collection business must hold a valid licence to operate legally. This includes licensed debt collection companies, and it extends to their key appointment holders, sole proprietors, limited liability partnerships, or limited partnerships.
In addition, individual debt collectors must be separately approved through the debt collector licensing process. This ensures that every person or key appointment holder is assessed as “fit and proper” to conduct debt recovery work. Applicants must clearly state their scope of business, and in some cases, submit a joint application with their debt collection company for approval.
Unlike illegal moneylenders, licensed debt collectors are required to operate strictly within the law. They are prohibited from using threats, harassment, or disclosing your debt details to others. All collection activities — whether making contact or recovering payments — must comply with professional standards and legal guidelines. Both companies and individuals can face severe penalties if they breach these rules.
While the core responsibility of a debt collector is to recover money owed, consumers retain important rights. Understanding the difference between legal collection practices and harassment empowers you to respond with confidence and protect yourself.
If you find yourself receiving constant calls from debt collectors, it may be a clear signal that you need to explore structured debt solutions — such as repayment restructuring or debt management plans — rather than handling collectors one stressful call at a time.
📞 Take the first step today — book your free consultation with EDUdebt and regain control of your finances before debt takes control of you.
Sources / References (Singapore)
- Debt Collection Act 2022 (No. 27 of 2022). Singapore Statutes Online.
https://sso.agc.gov.sg/Act/DCA2022 - Debt Collection Act 2022. Singapore Police Force – E-services (PDF).
https://www.police.gov.sg/-/media/Spf/Files/E-services/Debt-Collection/Debt-Collection-Act-2022.ashx - Debt Collection (General) Regulations 2023. Singapore Statutes Online.
https://sso.agc.gov.sg/SL-Supp/S724-2023 - Ministry of Home Affairs. “Commencement of Debt Collection Act 2022”. Media Release, 28 November 2023.
https://www.mha.gov.sg/mediaroom/media-detail/commencement-of-debt-collection-act-2022 - Singapore Police Force / GoBusiness Licensing. “Overview / Apply for Debt Collection Business Licence” and “Apply for Approval for Debt Collector”.
https://www.police.gov.sg/Business-E-Services/Apply-for-Debt-Collection-Business-Licence
https://licensing.gobusiness.gov.sg/licence-directory/spf/apply-for-licence-for-debt-collection-business
https://licensing.gobusiness.gov.sg/licence-directory/spf/apply-for-approval-for-debt-collector - SingaporeLegalAdvice.com. “Are Debt Collection Companies Regulated in Singapore?” (14 March 2025).
https://singaporelegaladvice.com/law-articles/debt-collection-companies-regulated-singapore/ - Stănescu, C-G. “An Empirical Evaluation of Informal Debt Collection Regulation in Singapore: Fragmentation or Complementarity?” Singapore Journal of Legal Studies (2025).
https://law.nus.edu.sg/sjls/wp-content/uploads/sites/14/2025/05/FV_A_CGS.pdf - WongPartnership LLP. “The Debt Collection Act 2022: Its Genesis, Scope and Implications” (February 2024).
https://www.wongpartnership.com/upload/medias/KnowledgeInsight/document/20704/LegisWatch_TheDebtCollectionAct2022ItsGenesisScopeandImplications.pdf - InfoCapital. “Licensed vs Unlicensed Debt Collectors in Singapore – Key Differences” (7 October 2025).
https://info-capital.sg/blog/debt-collection-singapore/licensed-vs-unlicensed-debt-collectors-singapore-key-differences/ - “Singapore Debt Collection Solution Market: Key Trends” & “Singapore Debt Recovery Services Market – Key Highlights” (Market/technology notes).
https://www.linkedin.com/pulse/singapore-debt-collection-solution-market-key-trends-ohplc/
https://www.linkedin.com/pulse/singapore-debt-recovery-services-market-key-highlights-9olgf/
