IWK faces backlash over outsourcing of debt collection

PETALING JAYA: Indah Water Konsortium (IWK) is facing criticism for outsourcing the collection of arrears to debt collectors, with many customers raising privacy concerns after receiving frequent calls demanding payment for outstanding bills.

Additionally, the “TrueCaller” app has flagged numbers used by IWK debt collectors as spam due to customer complaints and unease over unsolicited calls regarding sensitive matters such as arrears.

A customer, who identified himself as Ahmad, shared his frustration over receiving multiple calls demanding payment.

“I was shocked that IWK is using debt collectors to harass us. As a major company, IWK should at least inform the public that it has outsourced its bill collection. With so many online scams, it’s unsettling to get calls from unknown numbers.

“The caller even read out my address and account details. It’s clear that IWK’s public relations team is not doing their job effectively,” he said.

IWK CEO Narendran Maniam confirmed that the company has outsourced arrears collection to debt collectors.

“We understand the public’s concerns about unsolicited phone calls, particularly given the rising prevalence of scams. Some customers have already contacted us for clarification,” he said.

Addressing complaints about privacy breaches, Narendran explained that outsourcing debt collection is a standard industry practice, widely used by utility companies, banks and telecommunications providers.

He said the method enables more systematic and effective arrears recovery compared with traditional paper notices.

“When engaging third-party debt collectors, we ensure compliance through legally enforceable data-sharing agreements, which mandate strict protocols for secure handling, usage and confidentiality of customer information.”

Narendran encouraged customers to verify the authenticity of any calls by contacting IWK’s official customer service channels, such as its careline, social media platforms or email.

“We assure our customers of compliance with the Personal Data Protection Act. IWK places a high priority on protecting customer data and strictly adheres to the Act’s requirements,” he said.

He added that IWK has undertaken various measures to encourage timely bill payments, including promotions, giveaways, legal action, debt collection efforts, red notices and collaboration with Credit Tip-Off Service.

“These efforts are necessary because, unlike other utility providers such as Tenaga Nasional Berhad or water operators, IWK cannot immediately disconnect services for non-payment, as doing so would have significant public health and environmental implications.

“IWK also does not impose late payment charges, which limits enforcement measures,” Narendran said.

He clarified that customers are notified of outstanding balances through their bills.

If payment is not received, a red bill is issued as a formal overdue notice, which also includes information about the involvement of a debt collection agency.

“Debt collectors only contact customers after these notifications have been sent, ensuring they are aware of their arrears,” he explained.

IWK also communicates important updates through announcements, public notices and various channels such as the company’s website, social media platforms and its customer portal.

Key updates are also included directly on sewerage bills to enhance visibility.

“Regarding the involvement of debt collectors, IWK ensures their engagement aligns with regulatory and customer service standards,” Narendran added.