Debt Collection Act 2022

REPUBLIC OF SINGAPORE GOVERNMENT GAZETTE ACTS SUPPLEMENT Published by Authority NO. 27] Friday, October 7 [2022 The following Act was passed by Parliament on 13 September 2022 and assented to by the President on 28 September 2022:— Debt Collection Act 2022 (No. 27 of 2022) I assent. HALIMAH YACOB, President. 28 September 2022. Date of Commencement: 1 December 2023 An Act to regulate the operation of debt collection businesses and the conduct of certain debt collection activities and to provide for other connected or incidental matters. Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows: PART 1 PRELIMINARY Short title and commencement 1. This Act is the Debt Collection Act 2022 and comes into operation on a date that the Minister appoints by notification in the Gazette. General interpretation 2.—(1) In this Act, unless the context otherwise requires — “Assistant Licensing Officer” means a public officer appointed under section 3(1)(b); “authorised officer” means a public officer appointed under section 3(3); “class licence” means a class licence determined under an order made under section 14(1); “class licensee” means a person to whom an order under section 14(1) applies; “code of practice” means a code of practice issued or approved by the Licensing Officer under section 16, and includes any such code of practice as amended from time to time under that section; “compliance officer” means an individual appointed under section 4(1); “corporation” has the meaning given by section 4(1) of the Companies Act 1967; “debt” means a monetary obligation owed by a debtor; “debt collection activity” means any activity undertaken in Singapore that involves finding the debtor of a debt or requesting, demanding or collecting from the debtor money due under the debt; “debt collection business” means the business carried on by a person of collecting any debt from a debtor — (a) on behalf of another person; or (b) where the firstmentioned person has acquired the debt; “debt collector” means an individual who carries out any debt collection activity for or on behalf of another person; “entity” means any of the following: (a) a corporation registered under section 19 of the Companies Act 1967; (b) a sole proprietorship or partnership registered under the Business Names Registration Act 2014; (c) a limited liability partnership registered under the Limited Liability Partnerships Act 2005; (d) a limited partnership registered under the Limited Partnerships Act 2008; (e) an entity having a business or corporate structure as may be prescribed; “excluded person” means a person specified in Part 1 of the First Schedule; “inspecting officer” means the Licensing Officer, an Assistant Licensing Officer, an authorised officer or a police officer; “key appointment holder”, in relation to an entity, means any of the following persons: (a) where the entity is a corporation — (i) a member of the board of directors or committee or board of trustees or other governing board of the corporation; or (ii) an individual for the time being holding the office of chairperson or chief executive officer of the corporation; (b) where the entity is a sole proprietorship — the sole proprietor; (c) where the entity is a partnership or limited partnership — a partner of the partnership or limited partnership, as the case may be; (d) where the entity is a limited liability partnership — a partner or manager of the limited liability partnership; (e) any person, other than a person mentioned in paragraph (a), (b), (c) or (d), by whatever name called, who is principally responsible for the management and conduct of the entity’s business activities; “licence” means a licence granted or renewed under section 8; “licensee” means a person who is the holder of a licence, but does not include a class licensee; “Licensing Officer” means the public officer appointed under section 3(1)(a); “modification” and “modify”, in relation to the conditions of a licence or the conditions of an approval granted under section 20 for an individual to be deployed as a debt collector of a licensee, include deleting, varying and substituting a condition, and adding a condition; “police officer” has the meaning given by section 2(1) of the Police Force Act 2004; “public authority” means — (a) any Ministry, department of the Government or Organ of State; or (b) any body established or constituted by or under any public Act to perform a public function; “regulated business” means a business specified in Part 2 of the First Schedule. (2) For the purposes of this Act, any debt that is owed to a person who carries on a regulated business in the course of the regulated business includes a debt that is owed to the person as a consequence of a merger with, or acquisition of, a regulated business. (3) For the purposes of this Act, a person (A) deploys an individual (B) as A’s debt collector, if B — (a) is in the direct employment of, or acting for or by arrangement with, A; and (b) is authorised to carry out any debt collection activity for or on behalf of A. (4) For the purposes of this Act — (a) a licensee is not regarded as being granted a licence to carry on a debt collection business or to carry out any debt collection activity in the course of the business, during the period the licensee’s licence is suspended under section 22(2)(b) or 24(2); (b) a class licensee is not regarded as authorised under a class licence to carry out any debt collection activity to collect any debt that is owed to the class licensee in the course of the regulated business carried on by the class licensee, during the period the application of the class licence to that class licensee is suspended under section 22(2)(b) or 24(2); and (c) a licensee and an individual to whom approval is granted by the Licensing Officer under section 20 for the individual to be deployed as a debt collector of the licensee, are not regarded as being so approved during the period the approval is suspended under section 25(2)(c) or 27(2). Appointment of officers 3.—(1) The Minister may, for the purposes of this Act, appoint — (a) a public officer as the Licensing Officer; and (b) any number of public officers as Assistant Licensing Officers that the Minister considers necessary. (2) The Licensing Officer and Assistant Licensing Officers may be known by the titles that the Minister may determine from time to time. (3) The Licensing Officer may, in relation to any provision of this Act, appoint any public officer to be an authorised officer for the purposes of that provision, either generally or in a particular case. (4) Subject to subsection (5), the Licensing Officer may, with the approval of the Minister, delegate the exercise of all or any of the powers conferred or duties imposed upon the Licensing Officer by any provision of this Act (except the power of delegation conferred by this subsection) to an Assistant Licensing Officer. (5) Any delegation under subsection (4) may be general or in a particular case and may be subject to the conditions or limitations as set out in this Act or as the Licensing Officer may specify; and any reference in the provision of this Act to the Licensing Officer includes a reference to such an Assistant Licensing Officer. Compliance officers 4.—(1) The Licensing Officer may, with the general or specific approval of the Minister, appoint an individual who — (a) is at least 18 years of age; (b) is not an employee of a public authority; (c) is not a public officer; and (d) has suitable qualifications or experience, to be a compliance officer to assist the Licensing Officer or an authorised officer in the exercise of enforcement powers in Division 3 of Part 4 in any particular area in Singapore. (2) The Licensing Officer may, for any reason that appears to the Licensing Officer to be sufficient, at any time revoke an individual’s appointment as a compliance officer. (3) The Licensing Officer must issue to each compliance officer an identification card, which must be carried at all times by the compliance officer when exercising any power under this Act. (4) A compliance officer whose appointment ceases must return any identification card issued to him or her under subsection (3) to the Licensing Officer. (5) The Licensing Officer must also issue to each compliance officer, a written authorisation specifying one or more of the powers expressly specified in Division 3 of Part 4 as exercisable by a compliance officer, as what the compliance officer may exercise, and no other powers. (6) The authorisation of the Licensing Officer under subsection (5) issued to a compliance officer may also do all or any of the following: (a) limit the powers mentioned in subsection (1) that the compliance officer may exercise; (b) limit when, and where in the particular area in Singapore, the compliance officer may exercise those powers or any of them; (c) limit the circumstances in which the compliance officer may exercise those powers or any of them. (7) To avoid doubt, the Licensing Officer cannot authorise under this section a compliance officer — (a) to detain or arrest any individual; (b) to search any place or individual; or (c) to seize any property. (8) The powers that a compliance officer may be authorised under this section to exercise may be exercised only — (a) on production of the identification card issued under subsection (3); (b) to the extent authorised by the Licensing Officer under subsection (5); and (c) as directed (generally or specially) by the Licensing Officer or an authorised officer. (9) A compliance officer who is authorised under subsection (5) to exercise any power expressly specified in that authorisation as exercisable by a compliance officer is deemed to be a public servant for the purposes of the Penal Code 1871 when exercising that power. (10) To avoid doubt, a compliance officer does not cease to be acting on the direction of the Licensing Officer or an authorised officer by reason only that the Licensing Officer or authorised officer is not present at all times. (11) An individual who is appointed as a compliance officer under subsection (1) does not, by virtue only of the appointment, become an agent of the Government. Protection from personal liability 5. No liability shall lie personally against the Licensing Officer, an Assistant Licensing Officer, an authorised officer, a compliance officer, a police officer or any other person acting under the direction of the Licensing Officer for anything which is done or purported to be done, or omitted to be done, in good faith and with reasonable care in — (a) the exercise or purported exercise of any power under this Act; or (b) the performance or purported performance of any function under this Act.