Harassment by Debt Collection Company

[Subok]

Hi BROs,

My friend a director of a Pte Ltd company was recently harassed by Debt Collection firm for a debt of 1K plus. The company had since ceased operation. Plus the registered office of the company is a office. But the Debt Collection Firm keep going to his home.

My question is, is it legal?

 

[vamjok]

1k plus only also cannot pay up. what kind of fuck up company is that. it will be best to post your friend details here so that i can avoid him like dirt.

i pity those worker under him, every month sure drag their pay like shit

 

[mrbell1009]

It is illegal. He doesn't owe the debt collection company any money, ie the debt collection company is a third party. He can ask the debt collection company to f*** off.

 

[angie II]

why not legal? so dat it can let debtors hide anywhere except their office?

 

[Subok]

all workers salary paid UP TO DATE. only own suppliers in fact some over 10K but only this stupid company 1K plus get debt collection company. Plus those collectors are HOCKIEN GANGSTER albeit "wear tie"

The way some of you make it out is like a company out to con. but all biz are subjected to risk so failure is one of them. If director are liable what for Pte Ltd? And director did not guarantee or sign any form of loan.

Any legal help?

 

[jw5]

Hi BROs,

My friend a director of a Pte Ltd company was recently harassed by Debt Collection firm for a debt of 1K plus. The company had since ceased operation. Plus the registered office of the company is a office. But the Debt Collection Firm keep going to his home.

My question is, is it legal?

Why is your friend's company not paying the debt?
Perhaps that should be the first question asked.

 

[allanlee]

Plus those collectors are HOCKIEN GANGSTER albeit "wear tie"...

KNN.... just because I got a rough looking face and speak hokkien dun mean I am a GANGSTER hor

 

[sunny302]

Who does yr fren owe?Is the debt collection company hired by the creditor to collect his $$$ from yr fren? If the question, is yes, there is nothing much yr fren can do except to pay up...Owe $$$Pay$$$ hor

Unless pyhsical threat is involved poddles won't intefere wun

 

[pfingo]

just pay the 1K and your fren problem will go away

 

[Subok]

business gone kapu already where got $$ to pay, I also lend him my money guess not coming back..

Isn't straight forward? a Pte Ltd debt is as it is Pte LIMITED to the company and not directors or shareholders?

 

[kuntakinte]

These debt collectors have every legal rights to do what they are paid to do !!

Yes, businesses are subject to risk and business owners must be brave enough to face the result of failure - including being harassed by debt collectors.

Please put your mentality in proper order.

all workers salary paid UP TO DATE. only own suppliers in fact some over 10K but only this stupid company 1K plus get debt collection company. Plus those collectors are HOCKIEN GANGSTER albeit "wear tie"

The way some of you make it out is like a company out to con. but all biz are subjected to risk so failure is one of them. If director are liable what for Pte Ltd? And director did not guarantee or sign any form of loan.

Any legal help?

 

[kuntakinte]

Legally speaking and not in commercial viable terms, when creditors sue a Pte Ltd Company, they sue all the directors and the company to recover their debts.

Just like CPF, if a Pte Ltd company did not pay up CPF for the staff, CPF will sue the company and its directors. So, legally speaking the directors are also responsible.

business gone kapu already where got $$ to pay, I also lend him my money guess not coming back..

Isn't straight forward? a Pte Ltd debt is as it is Pte LIMITED to the company and not directors or shareholders?

 

[Subok]

I think u are walking gingerly here.

Firstly CPF is a statutory board and wages are protected by LAW and enshrined in by laws. So in business own suppliers but never workers. Business fail, they can sue the company wind it up and recover whatever due to the creditors. UNLESS OR OTHERWISE IF THE PRIVATE HOUSE OF DIRECTOR GUARANTEED FOR LOANS OR GOODS, DIRECTORS ARE NOT LIABLE FOR DEBTS INCURRED BY THE COMPANY.

Frankly I thought by coming on here I am walking on nuetral grounds gathering info best to offer help to my friendbut guess most of the people here look down and booed on losers. Maybe most of you are suppliers, fine.

But no matter what, I will support my friend never to pay the $1K but I will lend him money to clear SALARY owning to WORKERS if any.

Look at him! Most bosses who failed either escound or never pay salary. At least for him, as far as I know he pay his workers up to the last cent even to steal beg borrow for the amount.

Suppliers would have EARN more than enough over the years to cover the $1K written off in bad debt!

What I tot is in this civilised society, unless debts owning to LOAN SHARK! I do not see why and how a debt collection firm can harrass a PTE LTD directors just to own that commission.

According to advice given by auditors are Directors ARE NOT LIABLE personally for the DEBT unless otherwise Directors took out the loan! Company cannot wind up unless debt fully cleared and the hassle to do filling every year even though company no more in existence.

Can I solicit for more learned advice from people from the floor than those who INSIST my friend pay the debt?

And whitewashed BullSh*T to those who insist that my friend is liable. ARe you an auditor? how come a certified auditor seem "so stupid" compared to your advice? THe issue here is not the creditor sue the company which I had adviced my friend, that would be BEST OPTION because the creditor would have to pay for the legal fees and winding up fees for the company and the name of the director.

BUT issue here is creditor DID not SUE the company but instead revert to using the good old GANGSTERISM method to recover debt.

 

[rodent2005]

I think u are walking gingerly here.

BUT issue here is creditor DID not SUE the company but instead revert to using the good old GANGSTERISM method to recover debt.

Point is, as far as company law goes, the director does not have to pay as the company is a limited company.

But getting debt collectors to collect the money is a different matter. The Company Act does not say the creditor cannot engage debt collectors to try collect the money from the directors. So as far as your argument that the company is a limited company goes, it does not apply to the debt collectors.

However, I do not know whether such acts by the debt collectors run foul of any other law or not in the sense that it is harrassment and causing distress to your friend since legally your friend does not owe the money.

 

[pfingo]

your fren pte ltd got buy management liabilty policy or not?

 

[Zombie]

Legally speaking and not in commercial viable terms, when creditors sue a Pte Ltd Company, they sue all the directors and the company to recover their debts.

Just like CPF, if a Pte Ltd company did not pay up CPF for the staff, CPF will sue the company and its directors. So, legally speaking the directors are also responsible.

Creditors sue directors usually only when there is fraud.
CPF sue directors when they failed the duties set out in the CPF Act.

 

[kuntakinte]

Creditors is a broad term and creditors including banks will sue the directors of the companies if they are also personal guarantors. It also complicate matters if financial matters are not clearly defined between companies and directors.

So, it is a general assumption to say that directors do not have to foot the debts of private limited or limited liability companies. There are conditions to it.

Creditors sue directors usually only when there is fraud.
CPF sue directors when they failed the duties set out in the CPF Act.

 

[Subok]

Didn't I tell u that this creditor is not a bank? just a supplier! Hopefully should ever one day if u fall no one pity you and instead will snarl at you, "O$P$"

 

[zack123]

Didn't I tell u that this creditor is not a bank? just a supplier! Hopefully should ever one day if u fall no one pity you and instead will snarl at you, "O$P$"

Suing for 1K is not economical. Getting on a debt collection with 20% commision on success would ensure that the supplier will at least get his money back.

Despite the pte ltd status, a responsible director should try to clear off the debt of the company especially if the sum is minimal.

You are obviously biased as the person in trouble is your friend. Look at the other end of the stick, your friend should also wonder who would be covering the loss to the supplier?

 

[Subok]

Suppliers had earned tons from him already.. all over tens of thousands deals. They would have easily recover that little $1K lost.

Generally MORALLY yes, a director should pay, BUT in business, this IS business. When you give others credit terms you run a risk of bad debts. In accounting, debts are perfectly normal and some cases HEALTHY.

I work for a big firm in SG, maybe a local MNC per say BUT, do you know my boss own creditors some as far back as 9 months?! yet these suppliers or vendors still knock at his door for business.

If what some of you presume is right, then my boss is a "Fu*king" immoral businessman.

But hearing from what some of your replies, obviously, most of from Class 95 (i.e. working class from 9am to 5pm) sorry no insult intended but naive working class reply.

Is there any vateran businessman here who could say something?