Written Answer by Minister for Law K Shanmugam to PQ on Individuals Placed under the Debt Repayment Scheme (DRS) and Regulation of Fees Charged by Debt Consulting Services

14 OCT 2024

14 October 2024 Posted in Parliamentary speeches and responses

Question for Written Answer

Mr Chua Kheng Wee Louis (Member of Parliament for Sengkang GRC)

Question:
To ask the Minister for Law (a) in the last five years, for individuals placed under the Debt Repayment Scheme administered by the Official Assignee, what is the average (i) total unsecured debt owed (ii) total fees paid to the Official Assignee and (iii) total fees paid to third-party debt consultancies; and (b) whether the Ministry regulates the provision of such debt consulting services and their associated fees charged.

Written Answer:

  1. For individuals placed on the Debt Repayment Scheme (DRS) administered by the Official Assignee (OA) from 2019 to 2023, the average total amount owed by each debtor is about $67,500.
  1. The law specifies that up to $2,250 is payable to the OA by debtors on a debt repayment plan of maximum five years under the DRS. This amount covers costs of determining the debtor’s suitability for the DRS as well as administration of the DRS.
  1. The law also provides for 1.5% of amounts collected from debtors under the DRS and for 3% of amounts distributed to creditors under the DRS to be payable to the OA as fees. These amounts vary greatly between cases based on the details of individual debt repayment plans the OA approves, which depend on multiple factors such as the debt size, the debtor’s income and the debtor’s circumstances.
  1. The Ministry does not regulate third-party debt consultancies or the fees they charge, and hence does not have information on fees.

Last updated on 14 October 2024