94 Dr Tan Wu Meng asked the Minister for Trade and Industry (a) what measures exist to regulate retailers offering consumer credit for goods purchased where the credit is provided by the retailer and not by financial institutions regulated by MAS; (b) where the debt has accrued via retailer-provided credit, how many of these consumers in 2021 are subjected to (i) debt collector action (ii) bankruptcy proceedings, respectively; (c) what dispute resolution mechanisms exist; and (d) whether safeguards exist to prevent predatory lending.

Mr Gan Kim Yong: Consumer credit provided by retailers account for less than 5% of loans by commercial entities to households. Retailers providing consumer credit under hire-purchase agreements are required to comply with the Hire-Purchase Act. Retailers offering other in-house credit sales agreements are required to abide by general laws like the Sales of Goods Act and the Consumer Protection (Fair Trading) Act, which prohibits unfair practices that could mislead consumers, such as misrepresentation or omission of material facts, or pressure selling.

In 2021, there were 39 individuals made bankrupt with at least one proof of debt submitted by a retailer as a creditor. The Government does not have data on other debt collector action against consumers by retailers. Consumers may approach the Consumer Association of Singapore (CASE) for assistance with dispute resolution, including when they are unable to work out a mutually agreeable repayment plan with the retailer.

The Government has engaged major retailers offering in-house credit schemes to improve their business practices, such as adequate disclosure of terms and conditions, responsible marketing and incorporating credit bureau reports as part of their credit assessment. Agencies will continue to keep a close watch on market practices and ensure that Government’s overall regulatory framework remains robust.