Letter to the editor | Tougher action and tougher government rules needed for irresponsible debt collectors

Got a juicy story to share? Have you encountered a gross injustice that needs to be heard? Would you like to give your opinion on current events? Email us your story with details and proof! Make your voice known!
[email protected]

Dear editor,

I refer to the report, “Tougher rules on collection agencies may create ‘loopholes’ for debtors to evade payment” (TODAY, June 16).

We should analyze the question of financial credits from a broader or deeper perspective.

Typically, most authorized moneylenders or credit agencies promote their lending service strategy by promoting “quick cash, instant approval, a low or attractive interest rate of xx% pa with flexible repayment” to attract borrowers.

Mostly, those borrowers who are in dire need of money for whatever reason would go to the smaller moneylenders because their lending procedures are less stringent and lengthy in terms of evaluating and rating the potential debtors, however, their lending policies and terms are ambiguous and harsh , if the repayment could not be made.

At worst, some unruly people turn to illegal moneylenders or “loan sharks” for a quick buck without due consideration of the adverse consequences.

These financial loan providers typically hire collection agencies to collect debts on their behalf
after customers default on their loan payments.

These collection agencies are either registered companies or unregistered individuals. In general, their collection tactics are unprofessional, irrational and harsh in the eyes of the public.

For example, some debt collection companies displayed the conspicuous words “debt collection” on their mobile panel to threaten their debtors, as this can clearly scare the debtor’s neighbors (who live next door or on the same floor) and create a public nuisance. If the debt payment is uncollected or unsuccessful, debt collectors can videotape the entire debt collection process and then post it online to harass, embarrass, and defame the debtor in question.

Given the ruthless and menacing nature of debt collectors, it is imperative that the government crack down on irresponsible debt collectors. This largely prevents the occurrence of public nuisance.

Therefore, it is important for all moneylenders to thoroughly research or assess the financial background and credit history of their prospective borrowers prior to granting credit approval.

Virginia C. Taylor