How to check if a debt collector is licensed in Singapore

If a customer owes your business money, handing the case to a debt collection agency can save you months of chasing. But not every agency is legitimate. Since 1 March 2024, every debt collection company in Singapore must hold a licence from the Singapore Police Force. Checking that licence takes about two minutes, and it protects both your money and your reputation.

What the law says

The Debt Collection Act 2022 introduced a licensing regime for the industry. Under it:

• Every debt collection company must be licensed by the Police before it can carry out debt collection work.
• Every individual debt collector must be approved by the Police. The company and the collector apply together, and both are assessed as "fit and proper".
• Breaking the rules has consequences. The Police can suspend or cancel a licence, and threatening or abusive conduct towards debtors is an offence that can lead to a fine of up to $10,000, up to 12 months in jail, or both.

Lawyers and law firms collecting debts for clients are regulated separately and do not need this licence.

How to check a licence in three steps

1. Ask the agency for its licence number. A licensed agency will give it to you straight away, and many show it on their website and documents. Ours is L/DCA/2024/000125.
2. Verify it on GoBusiness. The government's GoBusiness licensing portal lets anyone check a debt collection licence using either the licence number or the company's UEN (its business registration number). Make sure the company name matches the agency you are dealing with.
3. Ask who will handle your case. Individual collectors also need Police approval. If someone contacts you or your debtor claiming to be a debt collector, the Police advise asking for documentary proof of who they work for, then checking that employer's licence.

Warning signs to watch for

Be careful if an agency:

• Cannot or will not give you a licence number.
• Promises results through pressure, "shaming" or visits to a debtor's family.
• Suggests posting a debtor's details publicly.
• Pretends to be from the Police, a law firm or a bank.
• Asks for a large upfront payment before doing any work.

Threats, harassment and public shaming are not just unethical; they are offences. If an agency you hire behaves this way, it can damage your business's name with customers and partners, and expose you to complaints.

Why it matters for your business

When you hire a collection agency, it speaks on your behalf. A licensed, professional agency recovers your money while keeping the relationship with your customer as intact as possible. That matters if the debtor is a long-standing client, or someone others in your industry know.

A licensed agency is also accountable. It answers to the Police, its collectors are vetted, and it has every reason to follow the rules.

How Nation & Associate works

Nation & Associate has recovered debts for Singapore businesses since 2004. We are licensed by the Singapore Police Force (Licence No. L/DCA/2024/000125), and we have recovered more than $50 million for over 1,000 corporate clients.

• No Upfront Fee. We only earn when you recover your funds. If we don't collect, you don't pay.
• Lawful, respectful recovery. We work strictly within Singapore law and industry guidelines.
• Clear terms. All costs are agreed in writing before we begin, and you receive regular updates on your case.

Owed money by a customer? Contact us for a free assessment.