Debt collectors are the services commonly used by creditors to collect past due debts. Debt collectors, so far still discussed in controversy. Sometimes, they use intimidation directly to the debtor. Such actions often bring anxiety, to the debtor. therefore, coercion is the key.
Undoubtedly, in most cases, debt collectors are identical with big-bodied, frightening and abusive people who will not hesitate to forcibly take possession of a debtor's property if it has been assigned to collect. Debt collector, in principle works based on the power granted by the creditor.
In developing countries, even in developed countries, debt collection services do not sound unfamiliar. The majority of their clients are Banks. including in Indonesia and Singapore, which will be discussed in this article.
Perceptions of debt collectors in Indonesia that reflects the face of East Indonesia
image: Google
Especially in the field of banking, in Indonesia, there is a legislation that allows the bank (Credit Card Issuer) to do credit card billing with debt collectors who they own or debt collectors from debt collection service provider company. It is regulated in Bank Indonesia Regulation no. 14/2 / PBI / 2012 on Amendment to Bank Indonesia Regulation Number 11/11 / PBI / 2009 concerning the Implementation of Card-Based Payment Instrument Activities (PBI 14/2012).
However, it is stated in the PBI that the use of debt collection services, ie, credit card billing using debt collection staff from the service provider company can only be made if the quality of the Credit Card bills is included in the quality of the loss based on the collectibility criteria in accordance with the provisions of Bank Indonesia regulating the credit quality.
If this refers to the provisions of the Criminal Code, acts of violence committed by the debt collector can be charged under the law. In the event that the debt collector uses harsh words and is done in public, he can be punished with an insult article, namely Article 310 of the Criminal Code:
Whoever damages the honor or reputation of a person by accusing him of committing an act with the intent of the allegation of suspicion, shall be punished for the slander, with a nine-month imprisonment
The Financial Services Authority (OJK) also emphasizes the legality of debt collection services. Solo Tito Adji S, Deputy Chairman of OJK stated "People can report debt collectors (DC) or officers of illegal financing companies to OJK,"
"Illegal means the officers when seized the vehicle is not certified debtor and not provided with a letter of duty," said Deputy Head of OJK Solo Tito Adji S in Solo, Friday (5/1/2018).
Then in Indonesia, the faces of debt collectors can not be separated from the faces of Eastern Indonesia region. This does not mean unwarranted, the eastern Indonesians are known for their courage, abstinence, and intimidating experts. Therefore, their community is highly tested and experienced in dealing with debtors who are difficult to solicit their debts.
Jemmy Tattoo, one of the debt collectors from PT Laksana Cakrawala who is also Maluku origin, said that intimidation is part of a strategy to collect debts that recalcitrant debtors. The goal is that customers become psychologically depressed and immediately seek a solution (VICE). Usually, they have a strong bond to help each other. Debt collectors have their own credibility and professionalism when they successfully collect from the debtor. Thus, when the debtor feels fear before acting, another debt collector is in charge of a good communication relationship.
In fact, in 2011, the House Banking Commission proposed that Bank Indonesia re-regulate the rules on debt collectors. With the recommendation that the Bank should not use a third party to use debt collection services to be more easily monitored and controlled. Because according to Emir Moeis, Chairman of the House Banking Commission at that time, that any action relating to customers is still the responsibility of the banking.
The recommendation followed because many complaints about the rights of the debtor were violated, even until there was physical violence, eventually died in negotiating an agreement with a debt collector.
Perceptions of debt collectors in Singapore are completely ethical and too much legal protection for debtors
image:Â straitstimes.com
Similarly in Singapore, in recent years, Singapore has seen an increasing trend of home loans and business loans. There are potential unpaid debts. Debt collectors prepare to carry out their duties.
Although debt collectors in Singapore follow the code of ethics, it is not the same as the actual law. It only helps to realize what a debt collector should be doing.
In theory, the Singapore Credit Collection Association (CCAS) has a code of ethics for debt collectors. In fact, having a code of conduct is not the same as being bound by the actual law. Despite new calls to legislation governing debt collection, the Singapore government has not passed it.
In Singapore, in general, if a friend or relative has a debt and is legally entitled to be a collector. They are allowed to stalk social media, come to the office and ask to speak, or call your home and ask where you are. Unfortunately, what often happens is a lie, when on the phone to collect debts, you can lie to give wrong information. Debt collectors in Singapore are not as intimidating as debt collectors in Indonesia. They must be responsible for the applicable ethical and legal values.
It seems, the purpose of debt collectors to be able to help mediate and negotiate a loan repayment plan. The specific details of the debt collector action are under the Protection of Harassment Act. The things that cause suffering can mean verbal abuse. For example, if a debt collector threatens to hurt your pet, and you are depressed by that saying, they have violated the law.
Other things that are prohibited include:
- Unlawful editing (following you after work, hanging around your house, passing out your compromising photos)
- Threatening physical violence and brandishing weapons (if need be said, actually hurting you is illegal)
- Littering your property and other vandalism actions (such as spray paint notices on your wall, or dropping a cell phone from your hand)
If the debt collector takes an action too far, the debtor must report it to the police and file for a Protection Order, if there is sufficient evidence that they are harassing. Remember, debt collectors do not have more rights than other private citizens to whom you owe money.
An example of an illegal behaviour is when a debt collector causes an injury to the debtor. This could include various injuries, such as dropping the debtor unconsciously or hurting the debtor until it bleeds. If debt collectors are found to have any intention to harm, they may face up to 2 years' imprisonment, a fine of up to $ 5,000 or both.
More severe injuries are classified as "hurt" or prolonged illness. Volunteers guilty of causing painful injuries can face up to 10 years in prison, and fines or lashes.
Source: Singapore Legal Advice, singsaver, CCAS (Credit Collection Association of Singapore), VICE, BBC, hukumonline