Mr Chua Kheng Wee Louis asked 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.
Mr K Shanmugam: 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.
The law specifies that up to $2,250 is payable to the OA by debtors on a debt repayment plan of a maximum five years under DRS. This amount covers costs of determining the debtor’s suitability for DRS as well as administration of the DRS.
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.
The Ministry does not regulate third-party debt consultancies or the fees they charge and, hence, does not have information on fees.
Ministry of Law
14 October 2024
https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=written-answer-17771
Office of the Leader of the Opposition 