Sun Xueling on Debt Collection Bill

The number of police reports made against debt collection businesses and debt collectors has remained high, averaging 367 a year from 2018 to 2021. These have usually involved tactics used to pressure debtors to pay, which have attracted significant public attention and affected the public’s sense of safety. A Bill was put up for debate in Parliament on Tuesday (Sep 13) to regulate the debt collection industry, setting standards for entry and imposing licensing requirements on businesses and collectors. Before being granted a licence, businesses and collectors will have to be screened and approved by the police. Rules are set out for debt collectors, such as having to verify the identity of debtors and banning conduct that threatens people’s physical safety or putting up notices in public places. Penalties for contravention include jail time, fines and suspension or revocation of licences. To reduce the regulatory burden and costs for businesses, licensing requirements for different types of entities are calibrated based on the law and order risks posed by their debt collection activities. The details were given by Minister of State for Home Affairs Sun Xueling.