Credit Card Debt from 6 years ago and S-Pass

[nguyentran]

Hi guys, I used to study and work in Singapore from 2008-2013. After that, I am forced to leave Singapore due to losing my job. At that time I have a credit card debt of about 440 SGD with DBS. For 6 long years, DBS didn't email me about my debt, they just keep sending me an email with the title "Your Credit Card eStatement is ready to view online". But when I tried to access it, I can't, keep saying my account doesn't exist.
Then recently there is a company called Collectius that keeps emailing me once a month saying that please contact them cause they need to talk about my debt.

As a foreigner, May I know what is the consequence if I ignore these emails? Will it have any consequence for me if I come back to Singapore to apply for an S-Pass for work or visit Singapore as a tourist?

I tried to search for Singapore laws/rules regarding foreigner credit card dept but i cant find any

[PNGMK]

There are some possible consequences:

1. A court judgement has been made - not likely over $440. IF so this could escalate to a bankruptcy action but unlikely as you'd probably have been contacted.

2. The debt has been sold on. This is most likely considering a collection agency is after you.
There are NO criminal charges pending in this case and no immigration issues.

The consequences of ignoring Collectius are not that much apart from them hassling you. They might manage to get a court order allowing them to enforce the debt in your home country but that is not likely to be worth it over the small amount (where we see this happening is with people who owe hundreds of thousands). What I suggest is you attempt to settle with them on an amount and get a letter from them stating the debt is paid. This won't settle the issue with DBS (they will never lend you a cent again or allow you to open an account) but it will put the matter at rest. Collectius will probably settle for 20% or 30% of the original amount owed to DBS. They would have bought the debt for pennies on the dollar.

I should add a caveat as I see you are in Vietnam. I have known people to be physically harmed and even killed over small amounts there but mostly by the mafia. I would settle the account if possible.

[nguyentran]

I have asked Collectius, and they said that the amount I owe now is $2,778.19. It seems the amount I owe DBS keeps compounding as I didn't pay the debt.
They now ask me to transfer money to DBS via telegraphic transfer to DBS Bank, stating the reason for transfer is "Repayment of Credit Card" and indicate my full name and my bank account number with DBS in the reason for transfer.

Is it seem legitimate?

Is it possible for me to negotiate the amount I can pay back with them?

I tried to email DBS twice, but they didn't reply, I only got email replies from Collectius

[PNGMK]

I have asked Collectius, and they said that the amount I owe now is $2,778.19. It seems the amount I owe DBS keeps compounding as I didn't pay the debt.
They now ask me to transfer money to DBS via telegraphic transfer to DBS Bank, stating the reason for transfer is "Repayment of Credit Card" and indicate my full name and my bank account number with DBS in the reason for transfer.

Is it seem legitimate?

Is it possible for me to negotiate the amount I can pay back with them?

I tried to email DBS twice, but they didn't reply, I only got email replies from Collectius

1. Yes - if transfer is to DBS. It seems Collectius are receiving a success fee as well.
2. Yes - explain you cannot afford that much and make an offer (50%?) for a one off, immediate settlement. It's unlikely Collectius have any legal ability to compel you to make a payment in Vietnam.
3. I am not surprised.

[nguyentran]

Thank you for your reply, I will email them tomorrow and see what is their reply

[nguyentran]

Hi guys, so I attempt to make an offer to pay 50% to Collectius, but it seems they don't agree. here is what they reply:

Dear Mr. Tran Thai Nguyen,



Since you are able to remit SGD1,394, why are you holding back and do making payment to DBS bank?



Do note that the quoted amount is insufficient to close your facility with DBS bank and we need to highlight that appeal for waiver will be reviewed based on your justifications.



We advise for you to furnish the following documents upon the transfer of SGD1,394 for our appeal to the bank:-



1) Documents to proof your unemployment in the country your currently residing

2) Any other bank owing or medical documents (if any)



Look forward to your reply amicably.



Thank you

So what I want to ask is:
Are they trying to gather information on me such as my address in Vietnam through those documents that they ask?
I did a bit of research, and for Credit card debt consolidation, only local or PR can apply, foreigner like me cannot apply, so I cant appeal to them to ask for paying in installment, is that correct?
If I do as he said, which mean I transfer 50% the amount that I owe DBS now, will they really make an attempt to close the case?
Or they will just keep it open and ask me to pay the rest, if not just keep adding incurring interest and late charges monthly?
what should I reply them? what should I do?

[PNGMK]

1. No I don't think they are trying to do that. You can redact your address if need be.
2. Write and make it clear that the offer to pay half is contingent on the debt being settled completey (that the penalties and interest are far more than the original amount owned) and you don't have the means to settle more. It's clear to me they are pushing hard as there is no value in trying to pursue you in VN.

[malcontent]

Here is my opinion:

The collection company can put any figure for interest and penalties they want, that is just smoke and mirrors.

In this case, it seems like they are hoping to get lucky and cash in on this potential big win that they paid almost nothing for!

Just remember, you hold all the cards and can still walk away without paying a cent. They have everything to lose, so you have all the negotiating power. Anything they collect from you is almost pure profit for them.

You can even lower the settlement amount if you want, since they were not agreeable to your first (overly generous) offer!

You may also want to let them know that your second offer is final and if they do not accept it you will not contact them further.

In my experience with collection agents, they are not very trustworthy. We had a very small amount due Starhub when we switched homes and after paying the collection agent they never even reported back to Starhub that it was paid - they just pocketed the money!

[nguyentran]

Well I dont think that the money I pay will go to Collectius, since their instruction for payment is to telegraphic transfer to DBS bank, and it is not to any specific bank account, but to the bank, with the transfer message is to settle the credit card debt.
I also don't think that if I just ignore them, the problem will go away as DBS still not cut the debt, but keep it compounding for the last 6 years. The evidence for this is the debt initially to be 443, but now 2778.
here is their initial request then send me.

Dear Mr. Tran Thai Nguyen,
If you refer to the attached email sent to you on the 4 th of Sep 20.
Attached is the statement from DBS from Jan till April 2014 as proof of usage and since this was not fully
settled, the outstanding is now $2,778.19.
Do note that this is a credit card facility which is incurring interest and late charges monthly since 2014
which is the reason for the outstanding amount as stated.
Finally, you’re unable to access it via internet banking was due to the facility being closed with an
outstanding hence no longer visible in that mode.
We advise for you to assist with the immediate transfer of $2,778.19 via telegraphic transfer as we
understand that you’re no longer residing in Singapore.
The following telegraphic transfer details for your perusal:-
1) Bank Name: DBS Bank Ltd Singapore
2) Beneficiary Bank Address: 12 Marina Boulevard, DBS Asia Central, Marina Bay Financial Centre
Tower 3, Singapore 018982.
3) SWIFT Code: DBSSSGSG
4) Purpose of Remittance: Repayment of Credit Card
5) Please indicate your full name and the account number (as provided in the statements) when
transacting the payment.
6) Amount :SGD 2,778.19
Thank you


Collectius CMS (S) Pte. Ltd.

Based on this, I think that if I don't pay, the debt will just keep compounding to larger amount.
Or do you guys think that there is other possibilities? As for 6 years they didn't contact me, until a few months ago that I start to receive emails from Collectius.

[malcontent]

Just because Collectius has a DBS account where they want you to transfer money to, it does not mean you are paying to DBS!

You could easily contact DBS to confirm.

Personally, I would be very skeptical and make sure DBS really sold the debt to them and ask them what happens if you make any payment.

Does settling this debt actually do you any good? What is the statute of limitations? Won’t this fall off your record eventually? Seems like 10 years is the limit, but it may be extended if you recently admitted you owe this money - (something you should never do by the way).

[PNGMK]

Malcontent - your partially correct (it's 6 years) but DBS (here) can keep the debt on their books as long as they like in my experience (there's nothing in the law that stops them from doing that) - they will treat OP as a credit risk from here on. You are right that OP has every advantage on his side and can just disappear again.

[Max Headroom]

Probably not a good idea to post that guy's name, company and phone number on a public forum...


Edit: Name and phone number have since been removed.

[nguyentran]

Malcontent - your partially correct (it's 6 years) but DBS (here) can keep the debt on their books as long as they like in my experience (there's nothing in the law that stops them from doing that) - they will treat OP as a credit risk from here on. You are right that OP has every advantage on his side and can just disappear again.

So based on that, is that why Collectius contacting me now at the end of 6 years? before that, I only got contacted once by DBS Collection in 12/2019, but it goes in spam mail.

Here are some of the information i gathered from their emails:
- The debt will still increase each month if it is not settled
- The money I send will go to DBS bank, not to Collectius
- If I keep ignore them, something more serious gonna happen, but I dont know what, since their threat is really vague
- Collectius said that all the rights for my debt is still with DBS, so if I want to pay half, DBS need to review and approve it. Collectius can only help me to appeal with DBS, hence they urge me to send money to DBS ASAP.

To me, the whole situation is really confusing, as DBS dont reply any of my email, Collectius replies seem to be not really specific in details and generic. They dont clearly tell me anything on what will happen to me except I need to pay ASAP.

Right now I dont even know if I pay 50% of the debt, they will accept and settle the thing, or just keep the thing open, since they just keep asking me to pay first then prove that i lost my job and DBS will review my case.

Whole thing is really confusing to me