Debt collecting with charm and persistence
Wong Shiying
Singapore
WHEN one thinks of debt collectors, the image of burly men heavily clad in tattoos comes to mind. Commonly stigmatised as loansharks or "Ah Longs", Singapore debt collectors are hoping to clear their name.
Yvonne Ho, chief executive of Singapore Debt Collection Service, says: "People often mistake us as 'Ah Longs' because of the way we look, but we operate on a very different set of guidelines. As a legal entity, there are boundaries we cannot cross - vandalism of property, the use of violence and vulgarities are strictly prohibited."
How then do debt collectors convince debtors to pay up?
Winston Chin, director of KX-Unit, says: "Upon receiving the case, we will ensure that the client has provided sufficient evidence to prove that a debt has been incurred. If there are no problems, we will proceed to send a letter of demand to the debtor. If they do not respond to us within seven days, we will dispatch a team of two or three to visit their residential or commercial address."
However, debtors are not always cooperative. Some hide in their homes or offices, while others threaten to call the police. In these cases, persistence is key.
Ms Ho says: "Our longest case dragged on for two years. After countless visits, the debtor finally relented and agreed to pay the debt in instalments."
Having been in the industry for seven years, Jasmine Tan, managing director of Vantage Debt Recovery, has learnt a few tricks of the trade. "Public holidays are the best time to make visits as the debtors are more likely to be at home. During festive periods like Chinese New Year, it is easier to negotiate with debtors as they don't want to 'lose face' in front of their relatives," she says. "Female debt collectors can sometimes be more effective than males. Some debtors are more willing to open up to females as they see them as being more empathetic and understanding."
Perhaps there is a charm factor at play as well?
