Consumers are lodging record numbers of complaints but collection agencies'

CONSUMERS are lodging record numbers of complaints against debt collectors but find weak regulations give them little ground on which to make a stand.

Complaints to police jumped in the first half of the year, reaching 636 by the end of June, compared with 447 for the whole of last year.

A police spokesman said this reflected both a rise in financial problems and a greater willingness to report obnoxious debt-collection techniques.

A hotline maintained by the Hong Kong Monetary Authority also has seen complaints surge. The number of calls averaged 15 to 20 a month for most of the year, but jumped to 51 in July and 38 in August.

A spokesman was unable to explain the increase. However, the Sunday Morning Post revealed last week that companies sub-contracted to collect debts for banks and credit-card companies are using triad-linked thugs to recover arrears, prompting anti-triad police to launch a crackdown on debt-collection violence and vandalism.

Secretary for Justice Elsie Leung Oi-sie has responded to the soaring complaints by calling on the Law Reform Commission to assemble a sub-committee on debt-collection, which will examine the situation and look into strengthening the law.

Senior Government counsel Cathy Wan said the panel was still being appointed and was not expected to report back for at least a year, making it unlikely that any proposed changes would be put to the Legislative Council before late next year.