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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 debt collection-related crimes in the Legislative Council today (November 28):
Question:
In reply to my question at the Council meeting on March 14 this year, the Government said that it would continue to combat illegal practices employed by debt collection agencies ("DCAs"). Yet I have learnt that on 13th this month, a construction worker who owed a large amount of gambling debt was escorted back to his home by two men to collect the debt. The construction worker suddenly became agitated, climbed out of the window, and fell to his death on the podium. This incident indicates that there is a deteriorating trend in the harassment of members of the public by DCAs in recovering debts. Besides, some banks, finance companies, telecommunications companies, beauty service companies and even tutorial teachers have hired agencies similar to DCAs to collect money owed by their customers, causing many members of the public 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 1 January this year about harassment by DCAs, and the total expenditure incurred by the Government on handling such cases;
(b) whether at this point in time, 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 taking new measures to step 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) From January to September this year, the Police received 1 398 debt collection-related crime reports and 10 975 harassment reports unrelated to crime. Compared to the same period in 2006, the number of debt collection-related crime reports and that of harassment reports unrelated to crime decreased by 3.45% and 3.70% respectively, and the overall number decreased by 3.67%.
The procedure and duration of the investigation into each case differ depending on the complexity of the case. Moreover, the officers concerned may concurrently be handling cases of other nature. It is, therefore, difficult for the Administration to assess specifically the total expenditure incurred in handling debt collection-related cases.
(b) After considering in detail the recommendations put forward by the Law Reform Commission (LRC) in its report on Regulation of Debt Collection Practices, the Administration issued its detailed response to the report to the Panel on Security of the Legislative Council in September 2005. The Administration remains of the view that at present there are various legislative provisions to combat illegal debt collection behaviour of debt collection agencies, and that there is no need to introduce new or more legal provisions in this regard. The law enforcement agencies will continue to strictly enforce the relevant legislation, and handle matters related to improper debt collection in co-operation with other government departments.
As regard stalking arising from debt collection, the Administration will deal with the issue in its consideration of the LRC report on Stalking.
(c) In accordance with their powers under the law, law enforcement agencies have always been vigorous in law enforcement to combat illegal debt collection practices. Such enforcement effort has been effective in this regard. Apart from designating their crime investigation units to monitor and investigate into criminal offences that may arise from debt collection activities, the Police closely monitor the mode and overall trend of debt collection activities in Hong Kong so as to combat illegal debt collection activities in a systematic manner. For cases involving organised crimes or loanshark syndicates, depending on the circumstances and the seriousness of the cases concerned, the Police will designate the crime squads or the Organised Crime and Triad Bureau to handle them so as to step up enforcement against such illegal activities and to enhance the effectiveness of such enforcement action. Where appropriate, the Police will seek to freeze or confiscate proceeds obtained by illegal means by invoking the Organised and Serious Crimes Ordinance so as to cut the source of income of these loanshark syndicates.
In addition, in order to crack down on illegal debt collection, apart from appealing to the public through the television programme "Police Report" and distributing promotional leaflets in residential properties, the Police also liaise with the management companies of public and private estates and appeal for their assistance in preventing the loanshark syndicates from carrying out promotional activities or putting advertisements within the estates or the residential buildings. The Police also liaise with the management or security company of the estates where individual debtors reside so that they will pay more attention and prevent debt collection agencies from carrying out any possible illegal activities in the estates.
Ends/Wednesday, November 28, 2007
Issued at HKT 16:06
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