Regulation of debt collection businesses and debt collection activities relating to regulated businesses
6.—(1) A person must not, on or after the start date, carry on a debt collection business, or carry out any debt collection activity in the course of the business, unless the person is an entity which is authorised to carry on the debt collection business by a valid licence under this Act.
(2) A person who carries on a regulated business must not, on or after the start date, carry out any debt collection activity to collect any debt that is owed to the person in the course of the regulated business, unless the person is authorised to carry out the debt collection activity under a class licence determined by the Minister under section 14(1).
(3) A person must not, on or after the start date, advertise or otherwise hold himself, herself or itself out that the person is carrying on a debt collection business unless the person holds a valid licence under this Act.
(4) Subsections (1) and (3) do not apply to an excluded person.
(5) A person who contravenes subsection (1), (2) or (3) shall be guilty of an offence and shall be liable on conviction —(a)
to a fine not exceeding $20,000 or to imprisonment for a term not exceeding 2 years or to both; but
(b)
where the person is a repeat offender — to a fine of not less than $20,000 and not more than $100,000 or to imprisonment for a term not exceeding 5 years or to both.
(6) In this section, “start date” means the date which falls 3 months after the date of commencement of this section.
Application for or to renew licence
7.—(1) An application for or to renew a licence must be made to the Licensing Officer in accordance with this section.
(2) An application under subsection (1) must —(a)
be in the form and manner required by the Licensing Officer;
(b)
be accompanied by a non-refundable application fee (if prescribed) paid in the manner required by the Licensing Officer; and
(c)
be accompanied by any information that the Licensing Officer requires to decide on the application.
(3) In addition to the requirements under subsection (2), an application to renew a licence must —(a)
be made not later than the prescribed time before the date the licence expires (called in this subsection the renewal deadline); and
(b)
if made later than the renewal deadline, be accompanied by a non‑refundable late renewal application fee (if prescribed) paid in the manner required by the Licensing Officer.
(4) The Licensing Officer or an authorised officer may —(a)
carry out any inquiry or investigation in relation to an application under subsection (1) that is necessary for a proper consideration by the Licensing Officer of the application; and
(b)
request that the applicant provide, within a specified time, any additional information that the Licensing Officer requires for a proper consideration of the application.
(5) The Licensing Officer may refuse an application under subsection (1) —(a)
that is incomplete or otherwise not made in accordance with this section; or
(b)
if the applicant fails to provide the additional information requested under subsection (4)(b).
(6) An applicant who, in an application under subsection (1), makes a statement which the applicant knows to be false in a material particular shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 2 years or to both.
Grant or renewal of licence
8.—(1) After considering an application for or to renew a licence, the Licensing Officer may —(a)
on payment of a licence fee or renewal fee (if prescribed), grant or renew the licence, as the case may be; or
(b)
refuse (without compensation) to grant or renew the licence, as the case may be.
(2) The Licensing Officer must not grant or renew a licence if the Licensing Officer is satisfied that —(a)
the applicant is not a fit and proper person to hold a licence; or
(b)
a key appointment holder of the applicant is not a fit and proper person to act in that capacity.
(3) In determining whether —(a)
an applicant is a fit and proper person to hold a licence; or
(b)
a key appointment holder of an applicant is a fit and proper person to act in that capacity,
the Licensing Officer may have regard to, and give any weight that the Licensing Officer considers appropriate to, any criteria and requirements that are prescribed.
(4) To avoid doubt, the Licensing Officer is not confined to consideration of the criteria and requirements prescribed under subsection (3), and may take into account any other matter or evidence that may be relevant.
Form and validity of licence
9.—(1) Every licence is to be in the form that the Licensing Officer determines.
(2) Every licence granted or renewed under this Act continues in force for the period specified in the licence unless it is earlier revoked under section 22(1) or suspended under section 22(2)(b) or 24(2).
(3) A licence is not transferable or assignable to any person, and a purported transfer or assignment of a licence, or of any rights, benefits or privileges under the licence, is void and of no effect.
Licence conditions
10.—(1) In granting or renewing a licence under section 8, the Licensing Officer may impose any condition that the Licensing Officer considers requisite or expedient having regard to the purpose of this Act.
(2) The Licensing Officer may impose —(a)
conditions generally applicable to all licences;
(b)
conditions specifically applicable to a class of licences; or
(c)
conditions specifically applicable to a particular licence.
(3) Without limiting subsection (1), a licence may include conditions —(a)
requiring the licensee to put in place measures to ensure that every debt collector of the licensee carries out any debt collection activity in compliance with —(i)
all the conditions of the approval granted under section 20 for the debt collector to be deployed as a debt collector of the licensee;
(ii)
all the codes of practice that are applicable to the licensee; and
(iii)
this Act and any other written law, including the Penal Code 1871 and the Protection from Harassment Act 2014; and
(b)
requiring the licensee to undergo and pass any audit that the Licensing Officer may determine for compliance with —(i)
the provisions of this Act;
(ii)
the conditions of the licence or any approval granted under section 20 for an individual to be deployed as a debt collector of the licensee;
(iii)
the codes of practice that are applicable to the licensee; and
(iv)
any direction given by the Licensing Officer under section 11(4), 21(6), 22(2)(a), 25(2)(b) or 26(5).
(4) For the purpose of subsection (3)(b) —(a)
the audit may be conducted only by —(i)
an authorised officer; or
(ii)
any qualified individual or qualified audit team that may be approved by the Licensing Officer for that purpose; and
(b)
the Licensing Officer may require the licensee to submit to the Licensing Officer or to the persons conducting the audit any information that the Licensing Officer may specify which pertains to the licensee.
(5) Without limiting subsection (1), the Licensing Officer may grant a renewal of a licence with or without modifying the conditions of the licence, but section 11 does not apply to or in relation to granting a renewal of a licence with modifications to the conditions of the licence.
Modification of conditions of licence
11.—(1) The Licensing Officer may modify the conditions of a licence in accordance with this section without compensating the licensee to whom the licence is granted.
(2) Before modifying any condition of a licence, the Licensing Officer must give notice to the licensee —(a)
stating that the Licensing Officer intends to make the modification in the manner as specified in the notice; and
(b)
specifying the time (being at least 14 days after the date of service of the notice on the licensee) within which the licensee may make written representations to the Licensing Officer with respect to the proposed modification.
(3) On receiving any written representation mentioned in subsection (2)(b), the Licensing Officer must consider that representation and may —(a)
reject the representation;
(b)
amend the proposed modification in any manner that the Licensing Officer thinks fit having regard to the representation; or
(c)
withdraw the proposed modification.
(4) Where —(a)
the Licensing Officer rejects any written representation under subsection (3)(a);
(b)
the Licensing Officer amends any proposed modification to the conditions of the licence under subsection (3)(b); or
(c)
no representation is received by the Licensing Officer within the time specified in subsection (2)(b), or any representation made under that provision is subsequently withdrawn, and the licensee has not given immediate effect to the modification,
the Licensing Officer must issue a direction in writing to the licensee in question requiring the licensee, within the time specified by the Licensing Officer, to give effect to the modification as specified in the notice under subsection (2) or as amended by the Licensing Officer, as the case may be.
Lapse of licence
12.—(1) Unless expired or earlier revoked under section 22(1), a licence lapses —(a)
when the licensee ceases to exist; or
(b)
if the licensee is a sole proprietorship of which the sole proprietor is an individual — on the death of the sole proprietor.
(2) No part of any licence fee or renewal fee may be refunded upon the lapse of a licence under this section.
Register of licensees
13. The Licensing Officer must cause to be kept and maintained a register of licensees, in the form and manner and containing the information that the Licensing Officer thinks fit.
Division 2 — Class licences
Class licence
14.—(1) The Minister may, by order in the Gazette, determine a class licence that authorises any person who carries on a regulated business to carry out any debt collection activity to collect any debt that is owed to the person in the course of the regulated business —(a)
for a specified period or indefinitely, or to an extent specified in that order; and
(b)
subject to the conditions as may be specified in that order.
(2) To avoid doubt, there may be more than one class licence determined.
(3) Without limiting subsection (1)(b), an order made under subsection (1) may include conditions —(a)
restricting the manner or method by which a class licensee collects, or attempts to collect, any debt;
(b)
prohibiting a class licensee from collecting or attempting to collect any debt from any person unless the class licensee has first ascertained that the person is the debtor of the debt;
(c)
requiring a class licensee to only deploy employees of the class licensee as the class licensee’s debt collectors;
(d)
requiring a class licensee to put in place measures to ensure that every debt collector of the class licensee carries out any debt collection activity in compliance with —(i)
all the conditions of the applicable class licence;
(ii)
all the codes of practice that are applicable to the class licensee; and
(iii)
this Act and any other written law, including the Penal Code 1871 and the Protection from Harassment Act 2014;
(e)
restricting a class licensee from continuing to deploy an employee as the class licensee’s debt collector, if the employee had previously failed to conduct any debt collection activity in compliance with —(i)
all the conditions of the class licence that are applicable to the class licensee;
(ii)
all the codes of practice that are applicable to the class licensee; or
(iii)
this Act or any other written law, including the Penal Code 1871 and the Protection from Harassment Act 2014; and
(f)
prohibiting a class licensee from collecting debts which are not owed to the class licensee.
(4) An order under subsection (1) continues in force, unless it is revoked, for the period that may be specified in the order.
(5) A class licensee to which an order under subsection (1) applies may carry out any debt collection activity in respect of any debt owed to the class licensee in the course of a regulated business carried on by the class licensee subject to the conditions of the order being complied with.
Variation and revocation of class licence
15.—(1) Subject to this section, the Minister may, by order in the Gazette, vary a class licence determined under an order made under section 14(1) by —(a)
varying or revoking any condition specified in the class licence; or
(b)
specifying additional conditions of the class licence.
(2) Before varying a class licence determined under an order made under section 14(1) or revoking such an order, the Minister must, unless the Minister considers it impractical or undesirable in the circumstances of the case, cause to be published, in accordance with subsection (3), a written notice that —(a)
states that the Minister proposes to vary the class licence or to end the class licence;
(b)
describes the proposed variation or ending; and
(c)
invites interested persons to make representations about the proposed variation or ending by a specified date that is at least one month after the date of publication of the notice.
(3) A notice under subsection (2) must be published on the prescribed website or in one or more other forms that are readily accessible by the public.
(4) The Minister must, before varying a class licence under subsection (1) or revoking the order, give due consideration to any representations made to the Minister pursuant to the notice given in accordance with subsection (2).
Division 3 — Codes of practice
Codes of practice
16.—(1) The Licensing Officer may, with respect to all or any of the matters in subsection (2), from time to time —(a)
issue one or more codes of practice applicable to all licensees or class licensees or a specified class of licensees or class licensees;
(b)
approve as a code of practice applicable to all licensees or class licensees or a specified class of licensees or class licensees any document prepared by a person other than the Licensing Officer, as in force at a particular time or as amended from time to time, if the Licensing Officer considers the document suitable for this purpose; or
(c)
amend or revoke any code of practice issued under paragraph (a) or approved under paragraph (b).
(2) The matters for the purposes of subsection (1) are —(a)
the conduct, duties and responsibilities of a licensee;
(b)
the conduct, duties and responsibilities of a class licensee;
(c)
the management, administration and operation of debt collection businesses; and
(d)
the manner in which debt collection activities are to be carried out.
(3) If any provision in any code of practice is inconsistent with any provision of this Act, such provision, to the extent of the inconsistency —(a)
is to have effect subject to this Act; or
(b)
having regard to this Act, is not to have effect.
(4) Where any code of practice is issued, approved, amended or revoked by the Licensing Officer under subsection (1), the Licensing Officer must —(a)
publish a notice of the issue, approval, amendment or revocation (as the case may be) of the code of practice on the prescribed website or in one or more other forms that are readily accessible by the public;
(b)
specify in the notice mentioned in paragraph (a), the date of the issue, approval, amendment or revocation, as the case may be; and
(c)
ensure that, so long as the code of practice remains in force, copies of that code of practice are available for inspection, free of charge, by licensees or class licensees to whom the code of practice applies.
(5) No code of practice, no amendment to any code of practice, and no revocation of any code of practice, has any force or effect until the notice mentioned in subsection (4) is published in accordance with that subsection.
(6) A code of practice issued or approved under this section does not have any legislative effect.
(7) Subject to subsection (8), every licensee or class licensee must comply with the codes of practice applicable to the licensee or class licensee, as the case may be.
(8) The Licensing Officer may, either generally or for any time that the Licensing Officer may specify, waive the application of any code of practice or any part of a code of practice issued or approved under this section to any licensee or class licensee.
(9) Any contravention or failure to comply by a licensee or class licensee of or with any code of practice applicable to the licensee or class licensee (as the case may be) does not of itself render the licensee or class licensee (as the case may be) liable to criminal proceedings, but any such contravention may, in any proceedings (criminal or otherwise under this Act) in connection with an offence under this Act, be relied on by any party to those proceedings as tending to establish or negate any liability which is in question in those proceedings.
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
