Chairman Statement

“Navigator of Your Profession”, the slogan approved during the Executive Council meeting in January 2000, was certainly a fitting expression of our association’s developments in the past year. In line with the way forward last year, the Association continues the right direction to its second year. The development of certification program and award program, for instance, is now in its final stage and both programs are about to launch.

I mentioned last year my anxiety in writing the first Chairman’s Statement. I feel much more confident this year in writing this second Chairman Statement, not because the additional year of experience I have gained from working for the Association, but the very important support having been extended in the past year from the staff, Executive Councilors and of course, the Members.

While HKCCMA is stepping into the third year of development, I am proud to announce our 2^nd year anniversary and report to each member of your Association’s achievements in the past year.

Members Recruitment

The second year achievement of the Association is stable and promising. We now have more than 45 members, representing a 50% growth as compared to year before. In 2001 we recruited 3 Corporate Members, 3 Fellow Members, 6 Members and 3 Associate Members. Our members are from wide range of business sectors including banking & finance, telecommunication, garment, shipping, insurance, manufacturing, trading to debt collection and credit reporting agencies.

In the nine-persons Executive Council, four of them are from credit providers operation. They have contributed invaluable views and comments from the credit granting side, creating a balanced opinions and policies within the Council, which is vital in keeping our Association in the right direction, particularly important to the future development of the Association.

As we continue to move forward and the importance of credit management as a professional branch of a company’s management is recognised we will see a continuing rapid growth in our membership.

Since the official launch of the Association website back to March 2000 and its continuous development into a newsletter, resources centre and linkage to worldwide counterparts and news forum, we have been receiving an overwhelming response both locally and internationally.

In the past year, the website has gained a hit rate of more than 1,000 times a month from members and non-members users. The website, with various sections such as News Forum, Credit Quiz, Job Classified, Write an Article, Discussion Groups, is now also linked to more than 15 industry associations in various countries and over 150 search engines in the Net. I encourage every member or interested party to participate in any of the sections, especially in the “Credit Quiz”, “Write an Article” and “Discussion Groups”. You will find your participation rewarding.

The Association continued its interviews with the local and international media and magazines. In the international arena, the past year’s focus was primarily on the certification and award projects where interviews and release have been seen in major industry newsletters and magazines such as in ACA International’s “Collector Magazines“, “Worldview Newsletters”, “Society of Certified Credit Executive Newsletters” and “Creditors International Newsletters” in the US and “The Agents” magazine of Institute of Mercantile Agents Ltd (IMA), Australia.

In Hong Kong, interviews with major newspapers such as South China Morning Post, Hong Kong Economic Journal and Apple Daily are continuing. These interviews were mostly related to the establishment of the Association and comments on various topics and possible legislations that are related to the debt collection industry and credit management field. In line with our primary mission to develop professionalism within the credit and collection industry; the Association will continue on expressing views, concerns and possible correction on any misconception or prejudice of our industry, to the public.

In October 2000, South China Morning Post interviewed the Association vice-chairman Bobby Rozario on comment of the Stalking Report. The Association urged the Government to provide clear guidelines for police as to what constituted stalking. The Hong Kong Licensed Money Lenders Association also echoed the fear about the lack of a clear definition of stalking.

Bobby expressed concerns of the Association over possible abuse by debtors and the difficulties for police to enforce in view of the vague definition. The concern is not on whether the courts will rule mistakenly when a case is brought over, the question would be how police can tell whether a complaint is a genuine one. If a debtor has an intention to avoid repaying debt or tries to delay payment, they may call the police and complain of stalking by debt collectors. It will effectively provide debtors with protection if the case is accepted for investigation.

In April 2001, the Association chairman, in an interview with Hong Kong Economic Journal, encouraged the coverage of Commercial Credit Reference Agency (CCRA) to other commercial sectors other than the banks. Ben pointed out that it was common in other western countries to share credit information among commercial credit providers. Credit reference agency brings benefits to both credit seekers and providers.

The Association encouraged that the coverage should expand to debt collection agency, credit reporting agency and selected commercial credit providers. The Association further believed that it would help fostering a healthy credit environment in Hong Kong to expand the coverage of CCRA to other sectors other than the banks. According to the announcement of Hong Kong Monetary Authority (HKMA), more than thirty organizations and units from the banking, commercial and public units had submitted response to the consultation paper of CCRA.

The Consultation Paper of “Regulations of Debt Collection Practices” (“the Paper”) and Lobbying

In year 2001, the Association met a number of Legislative Councilors from various political parties as well as Independent Councillors including TSANG Yok Sing, FUNG Kin Kee, WONG Wang Fat and EU Yuet Mee.

During these meetings, the Association’s views and comments on the paper have been clearly expressed with most of the Councilors agreed to convey the Association’s concerns on the Paper in their future meetings with related government units and the Law Reform Committee (LRC). One of the Councilors also echoed our views and concerns and accordingly sent a letter to LRC requesting further clarification and clearer definition on some controversial recommendations, particularly the “Recommendation 1(a) in the Paper”.

The Association has also introduced its background, formation, structure and missions, which has aroused much interest from the Councilors.

Despite of the signs that LRC appeared to have slowed down its pace on the related legislation, the Association will continue its efforts in lobbying and meeting government units, political parties and legislative councillors, to ensure that the industry’s voice is widely and sufficiently heard. I would like to once again remind those who may not be aware that “the Paper” affects not only the third-party debt collectors, but also every single debt collection activity within the credit providers operation as well as person-to-person collection.

The Association believes the industry has reached an era of high standard and professionalism where its activities could be self-regulated. The government intervention appears unnecessary, and probably wastes resources. Through our dedication for the betterment of the industry and the stringent code of ethics and practices, the Association further believes it has already established a self-regulation model for the credit & collection profession.

As I write my report to our Members, we are about to conduct the official launch of The Society of Certified Credit & Collection Professionals Certification Program (SCCCP), which offers a four-level certification providing industry recognition for credit and collection professionals at various stages of their careers.

-Level IIA – Certified Consumer Credit Executive (CCCE); Certified Credit Bureau Executive (CCBE); Certified Financial Counselling Executive (CFCE).

(Notes: The above levels and designations will be offered through successful completion of certain criteria. For example, mandatory reading and satisfactory completion of an examination will fill requirements for Level II and IIA).

The SCCCP creates a never-before offered opportunity to credit and collection professionals to certify themselves through an established, reputable and recognized body.

The SCCCP is a certification program developed from the original Society for Certified Credit Executive (SCCE), which was established in 1960 and was the professional certifying branch of Credit International (a creditors association under ACA International in USA). SCCCP currently runs under the Education Council of ACA International, which is the largest association of credit & collection professionals in the world, with over 3,500 members. (ACA International was formerly known as American Collectors Association)

More information will be released in our association’s website www.hkccma.com or email enquiries to SCCCP, Hong Kong at scccp@hkccma.com.　

Being the “Navigator” of a profession is undoubtedly challenging. Nevertheless, the Association will continue sending this message to each member and practitioners in the profession on the role that the Association is striving and will continue to play. As the voice and forerunner of the profession to help identify and answer the needs and concerns of the entire profession, the Association will continue to serve as the “Navigator of Your Profession”.

In June 2001, the Association’s Chairman, Mr. Benedict Wong was certified as a Master Credit Executive (MCE), the most prestigious certification offered by the Society of Certified Credit Executives (now known as Society for Certified Credit & Collection Professionals (SCCCP). The MCE designation is reserved for those credit professionals who have demonstrated extraordinary professional, leadership capabilities and made substantial contributions to the credit industry at the national or international level.

In February 2002, ten HKCCMA members were certified as CCAE and CCCE respectively, the third level certification program offered by the Society of Certified Credit Executives, Hong Kong.

The SCCCP-HK certification program recognises the professionalism of our industry in Hong Kong, increasing public and professional awareness that these practitioners are part of the professional bodies and industry associations and have attained a certain level of achievement in their careers. It also adds more credibility to the credit and collections profession.

On behalf of the association, I congratulate them for their achievements and wish them continued successes in the future. Their achievements also signalize the achievements of the Association and the professionalism of our members, and the industry as a whole.

In all modesty, I am proud of the contributions that our members have allowed me to make to our association and to our industry through my appointment as Chairman. But I am far more proud of the active members throughout this association.

My thanks must go to an excellent Executive Council: Bobby R. Rozario, Desmond Wu, Alan Lam, Johnson Chong, Francis Lo, Eagle Cheung, Stephen Lo and Germany Heng,

The HKCCMA staff continues to excel, and I thank them for their efforts on our behalf, especially to Betty Huen, Director of Communications and Andrew Kwok, Director of Membership who volunteered their time and contributions.

I am also appreciative of the contributions made this year by each of the HKCCMA committee chairpersons and committee members who volunteered their time and energy for the betterment of our association and industry. Having exceptional people serving with you makes it even more worthwhile. They have made a lifelong impression on me.

Lastly, I cannot leave out our thanks to the Association’s Advisory Team Mr. James Kun Sun To, Legislative Councillor and member of the Hong Kong Democratic Party; Mr. K. K. Cheung, Commissioner of the Hong Kong Export and Credit Insurance Corporation; Mr. Gary Rippentrop, Chief Executive Officer of ACA International; Mr. Neil Wood, Director of the International Unit of ACA International; Mr. Victor C. Y. Chan, qualified solicitor, the Association Honorary Legal Adviser and Mr. Benny K. Y. Chan, a qualified accountant and owner of Benny K. Y. Chan & Co, the Association Honorary Accountant and ACA International (formerly known as American Collectors Association).

According to the news on South China Morning Post 4^th May 2002, Hong Kong banks will invite public comment on their controversial drive to share more customer credit information with each other. The out come of the public consultation will very much influence the proposed credit bureau on whether the bureau could be up and running before the end of this year. Soaring bankruptcies and unpaid credit-card bills have prompted banks’ plan to pool additional information such as number of credit cards a customer already has – together with credit limits and payment records, as well as outstanding unsecured personal loans and loan repayment history.

The present views on establishing the PCB are fairly balanced with banks in Hong Kong and The Hong Kong Monetary Association (HKMA) supporting its establishment before the end of the year while the consumers and union lobbyists and the Privacy Commissioner firing from the other side. It is worth to note that the establishment of PCB will mean amendments to a code of practice administered by the Office of the Privacy Commissioner, which requires as a first step a public consultation.

The Association supports the establishing of PCB, which is in line with our Mission Statement, “To strive for the preservation of a healthy credit environment in our society”. As long as access to the data is reasonably regulated, the Association believes the PCB would be able to reduce the amount of fraud and allow banks to make more sensible credit decisions. The sharing of positive data through PCB would also help young and inexperienced credit seekers to manage their credit spending correctly and appropriately, such as in parallel with their income resources, thus controlling, and hopefully decreasing the number of bankruptcies and possible tragedies.

The Association will respond to the public consultation on PCB upon the release of the consultation paper and details of our response will be on the association’s website in the near future.

The Association mentioned last year of developing a local award program. I am pleased to report that the framework of Annual Award Program has been finalised and is about to launch shortly. The five-person Judge Panel has been established and we feel honoured to have four prominent individuals and professionals joining the Judge Panel in addition to the association’s Chairman. The Judge Panel members are:-

- Professor William LEE, Department of Accountancy, The Hong Kong Polytechnic University

- Mr. Michael HAYNES, Managing Director of Hermes Credit Underwriters Hong Kong Limited

The Award is to recognize an individual who works relatively with credit & collection in the aspects of education & training, management, operation or customer service, during the past year, has been judged to have the greatest contribution to credit and collection industry in Hong Kong and or to his/her employer. More details on the Program including the nomination procedures and criteria will be available at the Association’s website at a later stage.

On behalf of our association, I would like to express our gratitude to all the members of the Judge Panel, especially to Mr. Neil WOOD, Professor William LEE, Mike HAYNES and Daniel LAU. Their support in serving in the panel is indispensable to the launching and future development of this award program.

The Association is heading into its third year of its establishment. The election result of the new Executive Council will be announced on the Annual General Meeting to be held on May 10 2002 at the Park Lane Hotel. Undoubtedly, the most imperative missions of the new team are to continue expanding the membership base, launching the “Certification Programs” and “Annual Award Programs” and lobbying efforts with government units, political parties and independent councillors. The development plans for year 2002-2003 include:

· Officially launch the SCCCP Certification Program providing opportunity to members to acquire professional and international designations.

· Continue the lobbying works with the government units, political parties and independent councilors for the credit and collection industry. Specially focuses on expressing the Association’s view on The Consultation Paper of “Regulations of Debt Collection Practices” (“the Paper”).

· Establish a study team under the Certification Committee in studying the feasibility of developing the SCCCP Certification Program in Mainland China. This is to provide opportunity for credit & collection practitioners in Mainland China to acquire professional and international designation.

· Review the “Who’s Who of Credit and Collection Management in Hong Kong” Project and plan the second edition. (Bobby Rozario, the association Vice Chairman, will give you more details on this publication in the upcoming AGM)

· Continue the development of educational and skill-building workshop on various credit and collection topics for members’ enhancement. For example, development of workshops for SCCCP Certification Program, Hong Kong and China.

· Launch the Annual Award Program.

The Judge Panel has been recently

established . The criteria for

nomination and development works will

be commenced.

· Establish a Survey Committee in conducting various surveys related to credit and collection industry. (For example, statistics on commercial debts like recovery rate and amounts)

· Continue to establish domestic and international recognition and affiliation with industry associations and professional bodies.

· Develop a “Scholarship Program” – seeking support and sponsorship from international associations (like ACA International and IMA, Australia) and multinational companies

· Develop credit management education courses – meeting universities on the possibility of developing courses on credit management and co-operate with overseas industry associations (such as on the provision of speakers and lecturers for the related courses).

· Launch a monthly “Mix At Six” function – providing venue and channels for members and non-members to mix and mingle on a monthly basis to better understand and communicate among the Association, members, executive councillors and non-members.

· Establish a Credit Management Resources Centre (CMRC) – provides members and general public credit counselling and credit management consultancy.

Prologue

Achievements

Members Recruitment