People often misunderstand that debt collection activities are debt recovery in the direction of “gangster”. However, debt collection must be implemented under the laws now, and this activity plays a certain role in society. There is a view that if debt collection no longer exists, society will be in a more difficult situation. Why is that? This article will answer the question: “What will happen to society when debt collection activities don’t exist?”

Debt collection activities don’t exist lead to the increase in illegal debt collection activities disturbs social order and security

Many people think that debt collection is wrong and should be eliminated. However, the illegal debt collection cases that media agencies often publish are mainly due to the following acts:

  • The creditor curses and insults the debtor;
  • The creditor publishes the personal information of the debtor on social networks and the street;
  • The debtor is pressured and urged so that the debtor intentionally causes injury, more seriously, kills and causes the creditor’s death.

For cases of violations originating from debt collectors, debt collection activities in the form of “gangster” or debt reclamation have been banned since the Investment Law 2020 took effect on January 1st, 2021. Currently, debt collection must be done through a law firm, law office, or authorized representative to ensure the debt is legally collected.

With the tightening of the law on debt collection, acts of violence, and insulting the honor and dignity of the debtor have decreased significantly, which creates opportunities for lawful and healthy debt collection. At this time, if debt collection is completely banned, it will have the opposite effect on society. The entitled party and the debtor no longer have a third party as an intermediary to settle the debt so it will be difficult to control emotions and more prone to aggressive behavior. This can lead to an increase in crime rates and disrupt social order and security. This is a consequence no one wants to happen, so instead of banning debt collection, this activity should be well-managed within the legal framework.

Debt collection activities don’t exist lead to state agencies and banks are under more pressure because of the lack of labor

The fact that debt collection organizations are active supporters of state agencies and banks.

Unlike debts between individuals and businesses, the debt of state agencies and banks has a very large value but it is unevenly distributed because the number of debtors can be up to hundreds or thousands of people. State agencies and banks cannot work with each debtor to request the debtor to pay taxes, fees, and charges. Even if banks have their debt collection department, it is not enough compared to the amount of debt. Therefore, debt collection organizations have helped state agencies and banks to collect debts for a long time and effectively, helping to reduce pressure on state agencies and banks.

If debt collection organizations no longer operate, this will be a heavy burden on state agencies and banks. Agencies will lack personnel and force to be able to contact, urge and monitor the debt repayment process. The number of jobs at agencies and banks will be pushed up and put great pressure on the tax collection arrears or the debt collection departments of banks. On the other hand, lawsuits related to debt settlement will inevitably increase and put more pressure on the Court and the Procuracy.

Debt collection activities don’t exist lead to Loss of job-creating source for a part of the employees

Nowadays, “debt collection” jobs often do not require professional qualifications or too high capacity. Legal knowledge, experience in debt assessment, and debtors’ ability to pay can be learned and applied quickly. Not only that, employees can earn extra income if the debt is successfully collected. Therefore, many employees still choose debt collection as a good job to apply for. Financial companies understand this so they regularly recruit many debt collectors, and create jobs for a part or employees in society.

However, if debt collection is no longer available, a series of financial companies and banks will have to cut staff, and many people will lose their job. During this time, a sudden increase in the unemployment rate could herald a larger economic and social crisis outcome. Thus, abandoning debt collection activities can have a negative impact on society.


Debt collection is more important to society than people think. If debt collection activities do not exist, society may face many difficulties because of law violations and crime rates will increase to meet the debt collection needs of society, agencies, and organizations. The state and banks are under pressure because of the lack of a debt settlement force and the unemployment rate may increase as many employees in this field lose their jobs. In addition, in economic terms, the debt and bad debt ratio could skyrocket if there are no debt collection activities to restrain and stabilize. Thus, if we can improve debt collection, we can build a more stable, fair, and developed society.