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Following is a reply by the Secretary for Security, Mr Ambrose S K Lee, to a question by Hon Albert Chan Wai-yip in the Legislative Council today (June 23):
Question:
In reply to my question at the Council meeting on February 11, 2009, the Government said that the Police had attached great importance to combating illegal debt collection activities conducted 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 still 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 February 11 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,
The Government is concerned about the nuisance of improper debt collection practices caused to the public and has adopted a multi-pronged approach to prevent and combat such practices through measures including strengthening enforcement and close monitoring the debt collection practices of relevant sectors by regulatory authorities. The number of such reports made to the Police decreased from 20, 610 in 2005 to 18,203 in 2009. My reply to the three parts of Hon Albert Chan Wai-yip's question is as follows:
(a) In 2009, the Police received a total of 2,017 debt collection-related crime reports and 16,186 harassment reports unrelated to crime. The total number of reports increased by 2,024 when compared with 2008. However, in the first four months of this year, i.e. January to April 2010, the situation improved slightly. The Police received a total of 659 debt collection-related crime reports and 4,246 harassment reports unrelated to crime. The total number of reports decreased by 1,065 as compared to the same period in 2009.
(b) As regards the Law Reform Commission's (LRC) report on "The Regulation of Debt Collection Practices", the Administration, after thorough consideration, made a detailed response to the report in September 2005. On the whole, we are of the view that various legislative provisions are already in place to combat illegal debt collection practices, and at the moment, there is no need to introduce new criminal offence provisions or licensing scheme in respect of operation of debt collection agencies. The Police will continue enforce the law rigorously, and handle criminal and non-criminal debt collection cases in co-operation with related government departments and regulatory authorities.
Meanwhile, the Constitutional and Mainland Affairs Bureau is following up on the recommendations of a related LRC report, i.e. the report on stalking, and will take into account stalking in relation to debt collection activities when considering the need and feasibility of introducing legislative proposals.
(c) The Police attach great importance to combating illegal debt collection activities, and have adopted pro-active measures to enhance the effectiveness of enforcement actions.
A dedicated team has been set up in the Police headquarters to closely monitor the trend of improper debt collection practices in various districts of the territory, and to formulate comprehensive preventive and operational strategies having regard to specific circumstances.
At the district level, police districts will, in addition to implementing overall combating strategy, and having regard to the characteristics, trend and seriousness of the improper debt collection activities in their respective districts, deploy resources and adjust their enforcement operations flexibly. At the same time, police districts will, through stepping up patrol and co-operating with property management companies in their respective districts, prevent illegal debt collection activities in housing estates and buildings as well as publicity activities of loansharking syndicates in these properties.
In handling individual cases, the Police will continue to implement the internal guidelines for handling of reports of improper debt collection practices. Debt collection cases involving criminal offences, such as those involving criminal damage or intimidation, will be referred to the dedicated criminal investigation teams for investigation so that criminal prosecution will be instituted when sufficient evidences are gathered.
For those not involving criminal offences at the moment, they will be assessed on the possibility of debt collection practices turning into criminal offences by the Police case by case, and then be categorised as "high threat" cases or "low threat" cases. Every "high threat" case will also be referred to the criminal investigation teams for follow up. As regards "low threat" cases, the Police will continue to monitor their developments. Once the situation has escalated, the criminal investigation team will take over to investigate the case.
If a debt collection agency employed by any licensed money lender, bank or financial institution is found to be collecting debts by improper or illegal means, the Police will inform the regulatory authority concerned so that the authority will investigate or take necessary follow up action on the debt collection agency involved.
Police officers will maintain contact with the informant when dealing with each report. If a debtor has welfare needs, the Police, after seeking his consent, will refer the case to the Social Welfare Department or non-governmental organisations, for providing necessary support services to the debtor.
In addition to enforcement, the Police also publicise successful enforcement operations and prosecutions to deter other debt collectors or debt collection agencies from harassing the public through illegal means. In addition, the Police will urge the public to avoid illegal money lenders and consider his repayment ability carefully when applying for a loan, so as to reduce the chance of being harassed by improper debt collection practices in future.
Ends/Wednesday, June 23, 2010
Issued at HKT 15:36
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