‘Do I look like
a gangster to you?’

According to SG Collectors’ general manager, Mr Kelvin Ho, and an associate who wanted to be known only as Mr M, the work begins when a client makes contact, usually through social media or referrals from past customers.

At the initial consultation, clients must provide comprehensive documentation to establish proof of debt, including contracts, invoices and correspondence with the debtor.

These materials go into a case file, which the debt recovery team uses to assess the existence of the debt and examine the broader context, such as the relationship between creditor and debtor, prior disputes and whether the debtor has multiple outstanding debts.

If the job is accepted, the debt recovery team will then issue and send a formal Letter of Demand to the debtor at both the person’s residential and office addresses, giving him or her seven days to respond.

The letter informs the debtor that a debt recovery team will now act on behalf of the creditor to enforce repayment.

The debt recovery team will also follow up with calls and messages to ensure the letter is received.

If the debtor engages, negotiations may begin, with instalment plans offered. If there is no response after repeated attempts to make contact, a collector will approach the debtor in person at their home or place of work.

Throughout the whole process, the team gauges the debtor’s personality and temperament in the way they respond – or don’t respond – to messages and calls.

The team will tailor its approach, based on whether the debtors respond well to sterner communication or a softer, more informal tone.

In cases where the debtor appears to be genuinely struggling financially, the team will also work out a plan that works for both creditors and debtors.

Mr Ho maintains that contrary to public perception, licensed debt collectors do not rely primarily on threats, harassment or intimidation.

They will try to avoid public shaming and direct confrontations where possible and prioritise negotiation, character assessment and structured repayment options as their core tactics.

The fees charged by licensed debt collectors vary depending on the scope of services, manpower deployed and the complexity and duration of recovery.

In James’s case, Mr King says the company took 15 per cent of the total amount recovered as its fee.

Nevertheless, recovery is never guaranteed; a point debt recovery teams make clear to clients from the outset. Job losses, a death in the family and cash flow problems are among the common reasons debtors cite for non-payment, says Mr Sean Lee, a licensed debt collector from Assured Debt Recovery.

“If you get back at least 80 per cent, it is considered very good,” he says. Still, debt collectors have the resources to encourage repayment that creditors do not have themselves.

Their structured workflow, repeated follow-ups, on the ground visits, carefully drafted repayment plans and close monitoring to ensure debtors stick to them are the reasons creditors turn to licensed debt collectors, says Mr Lee.

“Sometimes, we may raise our voice a little, but that’s about it,” says Mr Daryl Lee, also from Assured Debt Recovery. “We do not use vulgarities, vandalise property or hurt anyone.”

The collectors say Assured Debt Recovery can take on up to 20 new cases a month. However, not all debtors are cooperative. “Almost 60 per cent of my debtors actually have the money to pay but do not want to pay,” Mr Sean Lee says.

Some may not even act in good faith.

One of their latest clients, known only as Mr Loh, is owed more than $780,000 by an individual named Dan, who not only dodges repayment, but also accuses Mr Loh of “playing the victim card for years”.

Dan wants Mr Loh to forgive and forget the debt he owes.

“If I were to rank the hundreds of debtors I have encountered in my career by how difficult they were,” says Mr Sean Lee, who has been in the trade for more than a decade. “Dan would easily be in the top three.”

In 2014, Dan approached Mr Loh, his former supervisor, with an investment opportunity. Mr Loh’s money, he said, would be channelled to companies facing temporary cash flow problems and he would get his capital back with interest once they recovered.

Trusting both the idea and the person selling it, Mr Loh invested without hesitation. Over time, he put varying sums into about 10 companies, including more than $200,000 in one, agreeing to roll over his returns each time they were due.

He says: “I operate on a fair bit of trust. If I were suspicious, I might as well not invest to begin with. In this case, I think I was taken full advantage of.”

In June 2019, cracks appeared. Dan told Mr Loh that the company with the largest investment had run into trouble and might not pay on time. He later claimed that any payout would be split equally among four investors instead of according to their contributions.

Mr Loh questioned the decision. He also told Dan he wanted a list of all the companies he had invested in, as well as all his capital and interest to be returned by the end of 2019.

Dan did not push back. But on the last day of that year, he called with a confession: there had never been any investment.

According to what the debt recovery team later uncovered, genuine investments likely took place only in the first six months. After that, Dan admitted he had used the money for personal ventures that were not disclosed to Mr Loh, including opening a restaurant and purchasing a racehorse.

“He also did his math creatively and insisted the amount he owed was only $300,000,” says Mr Loh, who accused Dan of orchestrating a scam.

Dan denied this, claiming that his personal ventures were desperate attempts to generate enough money to repay Mr Loh.

The debt recovery team proposed a repayment plan that required Dan, a degree holder, to take on full-time work and repay the debt over time. Instead, he only wanted to work part-time and repay no more than $100 a month.

In a final, bizarre turn, Dan proposed taking over Mr Loh’s bank account so that he could maximise loans from multiple banks before declaring bankruptcy. The proceeds, he suggested, could then be used to repay Mr Loh.

Debt disputes, in certain circumstances, can cross into criminal territory, depending on the borrowers’ intention and what they do with the money.

Mr Adrian Peh, chairman of Adsan Law, says issues arise when there is evidence of fraud or dishonesty such as where money is obtained without any genuine intention to repay or where steps are taken deliberately to place assets out of creditors’ reach.

It is not illegal in itself for a person to place assets in the name of a spouse or relative, nor are debtors barred from receiving financial support from family members. However, such arrangements may be scrutinised if there are indications that they were to hide assets or avoid repayment.

Psychotherapist and financial counsellor Edwin Pereira of The Private Practice, says the way Dan reacted – avoiding, minimising and delaying – reflects the common fight-freeze-flight response to stress.

“No one likes a debt collector showing up; it is deeply shameful,” Mr Pereira says. “But when getting out of debt starts to feel impossible, some people choose to let it be.”

When this happens, creditors are often advised to make a police report or pursue civil action. But many worry that if a debtor is convicted and jailed, they may recover nothing.

This is why they turn to licensed debt collectors, who are trained to confront debtors within the law. Yet, Mr Loh says victims like him are often blamed as being gullible.

“Nobody talks about the big dent left with me,” he says.

At his lowest point, he adds: “I created a music playlist for my own funeral.”

Debtors can be hostile. While violence is not the norm, it is not unheard of in the course of debt recovery.

In July, 2025, licensed debt collector Zen Lin from SG Collectors was assaulted by a man wielding a golf club when he went to a Housing Block flat to ask about an unpaid bill. The blow left him with an arm injury that required stitches.

All related debt recovery activities have since ceased.

A spokesperson from the Singapore Police Force (SPF) confirmed the incident and said a 57-year-old man was arrested, and in January, given a 12-month conditional warning for committing a rash act that caused hurt.

Mr Lin was acting for a food supply company owed more than $8,000 by a couple who run hawker stalls, after months of non-payment.

The company’s representative, known only as Ms Hong, told ST it had supplied the couple for years but they turned elusive when attempts to negotiate vegetable price increases failed. After seeking legal advice to no avail, the food company hired SG Collectors.

Before SG Collectors’ first visit, Mr Lin says the alleged assailant was already harassing the team with prank calls.

“He called in the middle of the night and said: ‘I am in Johor Bahru now, having a massage and drinking, do you want to join me?’,” Mr Lin recalls. The calls became so relentless that his colleague eventually blocked the number.

“Can you imagine,” Mr Lin adds. “A debt collector blocking a debtor’s number?”

The golf club assault happened during their first face to face encounter.

“All we did was knock on the door,” Mr Lin says. “He opened it, told us to come closer, then spat on us, banged on the door and gate, shouted ‘come’ and swung a golf club at us.”

SG Collectors’ Mr Ho says it is common for family members to hide debtors or chase collectors away.

“We will check and verify the legal owner and occupants of the flat, so the family cannot claim the debtors have moved out.”

He adds that small businesses in particular, will engage debt collectors, as they lack the time and resources to track down debtors and pursue payment consistently.

“To them, cash flow is everything. Without it, they cannot stay afloat and legal proceedings only take up more time and money.”

He has also met business owners who have obtained court judgment orders, only to find that debtors continue to evade payment.

“To some debtors, a judgment order is just a piece of paper,” Mr Ho says. “Licensed debt collectors can present these orders and demand debtors to fulfil their obligations.”

A court judgment confirms that a debt is legally owed, but creditors must still take further steps to enforce it, says Mr Peh of Adsan Law. Debtors may sell assets, transfer property or move funds.

If there is evidence of dishonesty intent, the courts have the power to reverse these moves or in more serious cases, criminal investigations may follow.

Mr Peh says that the system is designed to deter abuse. Individuals who wilfully disregard court orders or engage in fraudulent conduct may face serious consequences, including restrictions under bankruptcy laws, such as not being discharged from bankruptcy and facing ongoing limits on finances and travel and also criminal liability.

Meanwhile, more people are seeking help for debt problems.

Credit Counselling Singapore (CCS) general manager Tan Huey Min tells ST the charity counselled 2,588 debt distressed individuals in 2025, about a 26 per cent increase from 2024.

These cases involved unsecured debts owed to banks, licensed moneylenders or both.

Demand for help has risen steadily since 2023, she adds, driven by greater consumer spending, widespread use of cashless payments and ease of online shopping, which makes it easier to overspend.

While most debtors want to repay what they owe, doing so requires determination and discipline.

Over the past year, about 40 to 45 per cent of those counselled by CCS were unable to work out a repayment plan, mainly because they did not have enough surplus in their budgets to sustain repayments.

Family support can help but resolving debt is a long-term effort for which debtors must ultimately take responsibility, Ms Tan says.

Licensed debt collectors tell ST the social stigma around their work remains.

Public perceptions are often shaped by viral videos of shouting matches or scuffles between debt collectors and debtors. Such footage, SG Collectors’ Mr Ho says, reinforces the stereotype that they resort to violence when debts are not recovered.

Others associate them with Ah Long, or illegal moneylenders, known for splashing paint, sending dead rats or scrawling “O$P$” on walls to threaten debtors.

The allegations are not entirely unfounded. In January 2019, the owner of a debt collection firm was sentenced to 30 weeks’ jail and fined $80,000 for using fake legal letters.

A year earlier, 13 individuals were charged with various offences allegedly committed in the course of debt recovery, including verbally threatening debtors, hurling vulgarities and causing public commotion.

In 2017, an employee of another debt collection company was jailed for eight weeks after pleading guilty to instigating a telco staff member to gain unauthorised access to confidential customer information.

Mr Sean Lee of Assured Debt Recovery acknowledges that the industry was once “chaotic”, with both collectors and debtors sometimes escalating disputes.

However, he says tighter government regulation has since imposed clearer boundaries and professional standards, making such incidents far less common today.

“Do I look like a gangster to you?” he asks, while asserting that there are practical reasons for collectors to appear physically imposing.

“Some debtors are unpredictable and may turn violent without warning. We need staff who can stay firm and react quickly when situations escalate.”

His colleague, Mr Daryl Lee says their team strictly follows what they call the three Vs: no violence, no vandalism and no vulgarities.

“We are here to solve problems, not create new ones.”

The SPF spokesperson said 261 debt collection business licences and 1,277 debt collectors approvals have been issued as at Jan 31, 2026.

Individuals seeking licences to run debt recovery businesses or work as debt collectors are assessed on several factors, including whether they have a criminal record.

Licensed debt collectors are barred from hiring private investigators or carrying out investigative work like tracking a debtor’s whereabouts or business situations. SPF says the restriction is meant to prevent investigative powers from being misused to pressure debtors into payment.

Collectors are also prohibited from behaving in a threatening manner and must produce proof of approval when asked.

As a breach of the guidelines could cost them their licenses, collectors try not to retaliate even in the face of provocation.

When tensions rise, Mr Ho says his team is trained to de-escalate them. “We tell the debtor to calm down and we will return another day.”

Mr M says verbal abuse, emotional outbursts or even physical attacks are common on the job.

“Debt collectors need to be assertive and empathetic at the same time,” he adds. “We must understand that some debtors are genuinely struggling and convey this back to the clients then work out a plan that makes sense for both sides.”

Still, collectors say the law could do more to protect them.

“Debtors, especially those with multiple debts, should know there are consequences if they abuse us or persistently refuse to repay,” Mr Daryl Lee says.

Mr Sean Lee says it is frustrating to be abused at work yet unable to defend oneself. He recalls one encounter where a debtor shouted: “What can you do to me? You are just a debt collector. You need me to owe money to have a job.”

Assured Debt Recovery is not listed on Google Reviews, Mr Daryl Lee adds, for fear that disgruntled debtors could leave misleading or false reviews.

Asked why he waited five years before admitting the loss, Dan, who owes nearly $800,000 to Mr Loh, says he had been trying to salvage the situation through what he calls “unorthodox ways”.

These included gambling at Marina Bay Sands in hopes of a windfall and investing in a construction company that later collapsed during the Covid-19 period.

Dan has never admitted culpability. Asked by ST to imagine himself in Mr Loh’s position, Dan says he would have accepted the loss. He wishes Mr Loh would stop pursuing him for the money.

A 2023 research study conducted by the National University of Singapore (NUS), Singapore University of Social Sciences (SUSS) and CCS, found that heavily indebted individuals may not always see themselves as financially irresponsible.

Researchers compared 1,442 extreme debtors – those with credit card debt of at least 12 times their monthly income – with members of the public and university students.

The debtors scored poorly on tests that measured self-control and decision-making but consistently rated themselves as highly capable. This resulted in a distorted self-image, where confidence remains high even as financial control weakens.

The study’s lead author, Associate Professor Jia Lile from NUS’ Department of Psychology, says this can make some debtors avoid confronting their situation and blame bad luck or an unfair system for their problems.

Such mindsets help explain why debt recovery efforts can sometimes trigger hostile reactions, with debtors taking it as a personal attack rather than a step towards resolving what they owe.

A debtor turned licensed debt collector who asked to be known only as Mason says when someone is deeply in debt to multiple creditors – as he himself was – they can become trapped in a cycle in which any money they have goes to one creditor after another.

“You are constantly repaying,” he says. “Even when you have money, it never feels like you do. At some point, you start thinking you might as well go all in – either pay everyone or pay no one.”

Mason began gambling in 2015.

“I placed bets on anything and everything as long as it was legal,” he says, adding that the largest bet he ever placed was $30,000.

To sustain his habit, he borrowed heavily from friends and kept his parents in the dark. By his early 20s, he was already about $200,000 in debt.

“My problem was not just debt, it was that I owed too many people,” he says. “If I paid Person A, I would not have enough for Person B and Person B would come after me.”

A childhood friend eventually stepped in and lent him a lump sum so that he would have only one creditor to repay. It took him 10 years to clear the debt. The experience, he says, shaped how he approaches his work today.

“I try my best to help debtors, offer advice and point them to the right direction if needed,” he says. “But I also know not everyone will listen. I did not, either, when I was deep in debt.”