News Forum

HKCCMA Survey Result of Law Reform Commission’s Report on Regulation of Debt Collection Practice

Editor Contribution.  November 5 2002

Captioned Report was released in July 2002. The HKCCMA in principle supports the idea for regulation and welcomes the recommendation for licensing.   However, in consideration of the magnitude of impact it has on the credit and collection industry,  it is incumbent upon the HKCCMA to solicit opinions from industry players such that, as situation warrants, these perspectives can be presented to concerned authority. 

To this end, the HKCCMA has conducted an on-line survey of the Association’s members and industry practitioners.  By the close of survey poll on September 14, 2002, 49 responses were received. 

Not surprisingly, a strong majority (over 70%) of respondents considered that the interpretation of ‘harassment’ (of debtors) is too subjective and debt recovery performance would thus be undermined as the allegation of harassment is vulnerable to abuse by debtors as a delaying tactic.

With respect to the licensing requirement,  three in four (slightly over 75%) respondents considered that individual debt collectors, in addition to debt collection agency, shall also be included.  They anticipated that the proposed licensing regime would enhance the professional and positive image of the local debt collection industry.

Stated below are the complete survey results:

(A) The creation of criminal offence for so-defined harassment would undermine debt recovery performance as debtors can easily avoid or delay debt repayment by alleging collection activities as offensive and criminal in nature.

- Strongly agree            59.2%

- Moderately agree      12.2%

- Neutral                        12.2%

- Moderately disagree  10.2%

- Strongly disagree        6.2%

(B) The interpretation of harassment is too subjective.

- Strongly agree            55.1%

- Moderately agree       20.4%

- Neutral                        14.3%

- Moderately disagree   4.1%

- Strongly disagree        6.1%

(C) A statutory licensing mechanism will create a more professional and positive image of the debt collection industry.

- Strongly agree            40.8%

- Moderately agree       34.7%

- Neutral                         14.3%

- Moderately disagree   4.1%

- Strongly disagree        6.1%

(D) The licensing requirement should include individual debt collectors.

- Strongly agree            44.9%

- Moderately agree       30.6%

- Neutral                         12.2%

- Moderately disagree   4.1%

- Strongly disagree        8.2%