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LCQ5: Vigorous actions against illegal debt collection practices
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    Following is a reply by the Secretary for Security, Mr Ambrose S K Lee, to a question by the Hon Albert Chan on illegal debt collection practices in the Legislative Council today (March 14):

Question:

     In reply to my question at the Council meeting on May 3 last year, the Government said that it would continue to combat illegal practices employed by debt collection agencies (DCAs).  However, I have learnt that there is a deteriorating trend in the harassment of members of the public by DCAs in recovering debts.  Some banks, finance companies, telecommunications companies, beauty service companies and even tutorial teachers have hired DCAs to collect money owed by their customers, causing many people to suffer harassment.  In this connection, will the Government inform this Council:

(a) of the number of cases reported by the public to the Police since April 1 last year about harassment by DCAs, how the figure compares to those in the two years preceding April last year, and the Government's average expenditure incurred in handling such cases;

(b) whether it will reconsider accepting the recommendations of the Law Reform Commission of Hong Kong made in 2002 of creating a criminal offence of harassment of debtors and others and introducing a statutory licensing system to regulate DCAs; if so, of the details; if not, the reasons for that; and

(c) whether it will consider stepping up law enforcement actions to curb the harassing practices of DCAs in recovering debts; if so, of the details; if not, the reasons for that?

Reply:

Madam President,

(a) In 2004 to 2006, the Police received 1,988, 2,355 and 1,903 debt collection related crime reports respectively; the number of non-crime harassment-related reports over the same period was 20,429, 18,255 and 15,050.  

     The procedure and duration of the investigation into each case differ with the varying complexity of the case.  The officers concerned may also handle cases of other nature at the same time.  Therefore, it is very difficult for the Administration to assess the average expenditure incurred in handling each case.

(b) With regard to the recommendations of the Law Reform Commission (LRC) in its report on regulation of debt collection practices in 2002, after considering various factors and concerns, the Administration issued to the Panel on Security in September 2005 its response to the report.  The Administration's position has not changed.  In brief, the Administration will continue to enforce the various existing legislative provisions to combat illegal debt collection behaviour of debt collection agencies, and there is no need to introduce other new legislative provisions.

     As regards stalking related to debt collection, the Administration will tackle the issue in its consideration of the LRC's report on stalking.  

(c) The Administration has always been vigorous in law enforcement to combat illegal debt collection practices.  In order to tackle the problem, the Police have specially designated the crime investigation units to monitor and investigate criminal offences possibly arising from debt collection incidents to prevent similar criminal activities.  Since many of the crime cases involving debt collection are related to triads and loanshark syndicates, the Police will continue to strengthen the Force's criminal intelligence network and conduct undercover operations to cut the source of income of these illegal syndicates.  The Police have also been maintaining close liaison with their counterpart in Macau on intelligence exchange for combating loansharking activities and enforcement coordination so as to tackle illegal debt collection activities at source.

Ends/Wednesday, March 14, 2007
Issued at HKT 14:42

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