There are many situations where money may be owed to you or your business and debt recovery steps are required to enforce the collection of those funds. In this article, we run through the key reasons why you should use a law firm in this process, rather than a debt collection agency.
Your money will be properly accounted for
Law firm accounts are subject to oversight by the Law Society of Singapore and are bound by strict rules of professional conduct. You will be assured that the monies collected by you on behalf of a law firm are accurately and properly accounted for and there is no issue of a disparity between the amounts paid by a debtor to the law firm and the amount reported to you by the law firm.
You will not be implicated if the debt collection agency breaks the law
Debt collection agencies do not have special powers of investigation or entry. If they threaten or harass a debtor, or as your agent cause damage or break any laws you may be vicariously liable as their employer.
You can terminate the services of a law firm easily
Law firms are regulated and subject to oversight by the Law Society of Singapore. A law firm can never prevent you from terminating their services or charge cancellation fees if you decide not to utilise them.
Transparency in fees
At IRB Law we provide fixed quotes for the work we undertake before we start. There are no hidden charges and no cancellation fees, you’ll know the cost of our services from the outset and can decide on whether to engage us after reviewing this information.
Other common questions around debt recovery
What should I do if debt collection agencies come to harass me?
Call the police immediately, especially if you feel threatened or afraid. Debt collection agencies do not have any special powers or authority to demand entry into your home/office/shop, search your belongings or documents, or use threatening language. They are subject to the same laws just like everyone else. Anything that you cannot do to another person without breaking the law, the same applies to them.
The debt collection agencies demand that I pay more than what I actually owe to my creditors, what should I do?
The final decision on the exact amount owed by one party to another can only be made by the Court. You should not feel obliged to pay the amounts demanded by the debt collection agency simply because they ask for it. If the debt collection agency tries to harass, threaten or otherwise intimidate you, call the police immediately.
IRB Law Partner Jeremy Cheong explains the typical debt recovery process in Singapore