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Following is a written reply by the Secretary for Security, Mr Ambrose S K Lee, to a question by the Hon Albert Chan in the Legislative Council today (February 11):
Question:
In reply to my question at the Council meeting on November 28, 2007, the Government said that it would continue to combat illegal practices employed by debt collection agencies ("DCAs"). Yet, I have learnt that recently the situation of debtors being harassed by DCAs in recovering debts is deteriorating, and it is also increasingly common for banks, finance companies, telecommunication service companies, beauty service companies and tutorial teachers to hire DCAs to collect money owed by their customers. In this connection, will the Government inform this Council:
(a) of the number of cases about harassment by DCAs reported by the public to the Police since January 1 of last year;
(b) whether it will, in view of the above situation, reconsider accepting the recommendations of the Law Reform Commission in 2002 on creating a criminal offence of harassment of debtors and others as well as establishing a statutory licensing system for monitoring DCAs; if it will, of the details; if not, the reasons for that; and
(c) whether it will consider introducing new enforcement measures to curb the harassing practices of DCAs in recovering debts; if it will, of the details; if not, the reasons for that?
Reply:
President,
(a) In 2008, the Police received a total of 1,920 debt collection-related crime reports and 14,259 harassment reports unrelated to crime. The overall figure was comparable to that in 2007.
(b) The Law Reform Commission of Hong Kong published its report on "The Regulation of Debt Collection Practices" in 2002. The Administration made a detailed response to the Report in September 2005 after thorough consideration. We remain of the view that various effective legislative provisions are already in place to combat illegal debt collection practices of debt collection agencies, and that there is no need to introduce new legal provisions in this regard. The law enforcement agencies will continue to strictly enforce the law, and handle matters related to improper debt collection practices in co-operation with other government departments. At the same time, Constitutional and Mainland Affairs Bureau is following up on the recommendations of the Law Reform Commission's Report on Stalking. Stalking or harassment in relation to debt collection activities will be taken into account when considering the feasibility of introducing legislative proposals.
(c) The Police attach great importance to combating illegal debt collection activities, and have adopted various measures to enhance the effectiveness of enforcement actions.
The Force has set up a dedicated team at the central level to closely monitor the trend of crimes relating to improper debt collection in the territory, and to formulate preventive measures and operational strategies having regard to specific circumstances. At the district level, every police district will, having regard to the characteristic, trend and seriousness of the improper debt collection activities in their respective districts, deploy their resources and adjust their enforcement strategies flexibly so as to address the problem in a targeted manner by dealing with cases involving criminal elements effectively and making early preventive efforts to avoid cases unrelated to crime from deteriorating or developing into criminal activities.
The Police have devised internal guidelines to assist frontline officers to enhance the handling of reports of improper debt collection practices. When dealing with such reports, police officers will maintain close contact with the informant and offer appropriate assistance (e.g. liaison with the management company or security company of the housing estate or residential building where the debtor resides; staying alert to possible illegal activities carried out by debt collection agencies and preventing these agencies from carrying out such activities in the estate or residential building). Where the situation so warrants, they will warn the money lenders and debt collection agencies concerned to remind them to collect debts only through legal means.
Where there is suspicion that a debt collection agency employed by a licensed money lender collects debts by improper means (including telephone harassment) or illegal acts, the Police investigation unit will inform the Police Licensing Office so that the Office will give appropriate consideration when handling the licence renewal application of the money lender concerned in future. Where a debt collection agency engaged by any bank or financial institution is found to be collecting debts by improper or illegal means, the Police will inform the financial regulatory authority concerned so that it can take appropriate follow up action.
Debt collection cases involving criminal offences (such as those involving criminal damage or intimidation) will be referred to the criminal investigation teams for investigation. Criminal prosecution will be instituted in accordance with the law depending on the circumstances. Non-crime reports assessed to be "high threat" cases will be referred to the criminal investigation teams for investigation. As regards "low threat" cases, although they do not involve criminal elements, the Police will continue to monitor them. Where there is suspicion that a case may develop into one involving a criminal element, the criminal investigation team will investigate the case.
In addition to enhancing their handling of cases involving improper debt collection practices, the Police will also combat illegal debt collection activities proactively through publicity. The Police will continue to disseminate the message of combating improper debt collection practices through the media, and publicise successful enforcement actions and prosecutions to achieve a deterrent effect. The Police will also continue to liaise with property management companies to seek their assistance in preventing loanshark syndicates from carrying out promotional activities or displaying advertisements within the confines of their estates or residential buildings.
Ends/Wednesday, February 11, 2009
Issued at HKT 16:31
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