what is Debt collection?
Debt collection refers to the service of contacting debtors to recover outstanding payments after they have failed to make payments in accordance with the agreed repayment schedule.
This service is typically carried out by debt collection agencies appointed by credit providers. Its purpose is to remind debtors of their payment obligations and to recover unpaid or overdue debts.
what you should know
01
Verify the identity of the debt collection agency
Request the name of the agency and a letter of authorisation from the credit provider.
02
Check the debt first
Do not panic or make rushed payments. Verify the repayment period, outstanding balance, and account status with the original credit provider.
03
Pay through official channels
Do not hand over cash to the debt collection agency. Make payments via bank transfer or official payment channels directly to the credit provider’s account.
04
Your rights are protected
Debt collection agencies are not permitted to threaten, coerce, impersonate authorities, use force, or engage in excessive harassment.
05
Keep all records
Retain all letters, receipts, and call records as evidence in case of harassment.
Summary
Debt collection agencies must operate in an ethical and professional manner. They are not permitted to use physical force, threats, abusive language, or harass a debtor’s family members or employer. A debtor’s personal information must be kept confidential, and agencies are not allowed to seize or confiscate property.
If an agency representative behaves inappropriately, report the matter to the relevant authorities and lodge a complaint with the agency’s complaints unit. Do not hand over cash to a debt collection agency. Make payments directly to the credit provider and retain receipts as proof of payment.