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Debt collectors in viral video were trying to recover monies from a 'stubborn' con man: JMS Rogers

Facebook screen grab of a video showing three men trying to collect debt. 
Facebook screen grab of a video showing three men trying to collect debt. 

[UPDATE 16 October 2014, 10:58am: Added licensed debt collector's comment]

The three debt collectors seen in a video shouting and banging on the door of a borrower's house was trying to recover monies from a "stubborn debtor who conned $23,000 from a mentally handicapped young man", said JMS Rogers, a Singapore-based licensed debt recovery and credit management company.

In an email to Yahoo Singapore on Thursday, they said that the debtor had caused "immense stress" onto the handicapped man's family, and that JMS Rogers were assisting the family in collecting the monies owed.

The debtor, known as “Jonathan”, had apparently borrowed $23,000 from a moneylender. JMS Rogers also confirmed that the 1-minute 40-second video was recorded at a HDB flat in Buangkok.

"All [of] our licensed debt collectors are properly trained before they work in the field and their modus operandi do not involve physical attacks or property destruction," they assured.

The debt collectors were seen in the video posted by local blog The Real Singapore. While no physical violence and vandalism were seen being committed in the clip, which garnered close to 900 comments, it was the naming and shaming tactic that sparked a debate among viewers.

Facebook user Walter Gan said, “If debtor is unable to pay, you [should] send legal demand letters, [instead of] these sort of acts. Hope the police will take serious action.”

Another user, Kavita Parsad Sharon, disagreed with both the collector and debtor, saying, “The harassment is not right… but people who borrowed the money must also know how to return [it].”

Meanwhile, users like Candy Kuang said such tactics were justified, “I don’t feel it is wrong. You borrowed money from the lender… You agreed with the terms and conditions. You promised to pay them back...”

Another user, Zhi Qiang said, “The debt collector indeed is disturbing the neighbour. But honestly speaking if you don’t borrow the money none of this will happen.”

Approaching the debtor’s workplace to collect debts, although potentially embarrassing, is not an offence, said Law Minister K Shanmugam in Parliament in 2012.

He said, “However, moneylenders cannot resort to harassment vandalism, violence or threatening behaviour when recovering debts. Borrowers who encounter such behaviour should report the matter to the police…”

Why the need for licensed moneylenders?

In January this year, K Shanmugam said that while the authorities are concerned with the increasing number of moneylenders in the Republic, the Law Ministry prefers to regulate the licensed moneylending industry to protect borrowers so that those who need money will not turn to illegal means.

Between 2011 and 2013, the number of licensed moneylenders decreased from 249 to 200, but the total value of loans remained high, said the Registry of Moneylenders. The total value of loans went up from $346 million in 2012 to $478 million in 2013.

Borrowers who wish to lodge a complaint against a moneylender may contact the Registry of Moneylenders at 6325 2585 or email ipto_romp@ipto.gov.sg.