Customer sues bank over debt collection

A bank customer is seeking a refund of 'unreasonable' collection fees he paid a bank after being pursued by debt collectors.

Fan Kin-kwan, 36, has taken Citibank International to the Small Claims Tribunal to demand a refund of $32,000 in collection fees he paid in February.

Outside the tribunal, the delivery worker's elder brother, Fan Wing-yau, said the fees - which amounted to nearly 25 per cent of $131,000 in outstanding debts for two credit cards - were too high.

Fan Kin-kwan had also filed a lawsuit against Chase Manhattan Bank, to which he paid about $33,000 in collection fees in February. But the bank agreed on Thursday to refund the fees.

After the debts had been settled with the banks in February, the Fans complained to the Consumer Council. Citibank had told Fan Kin-kwan that he was bound by the card contract, which stated customers were liable for any debt-collection expenses.

However, Fan Wing-yau, a salesman, said the contract was in fine print that discouraged reading.