Should recovery agents be banned?
The major issue being overlooked is access to justice for all. The current supplementary legal-aid scheme offers some comfort but still excludes many.
There is a non-refundable HK$1,000 application fee, a contribution by the claimant of up to HK$41,425 and an intrusive means-testing procedure. After this procedure, which can take months, the Legal Aid Department still rejects about 35 per cent of applicants.
Where would these applicants go if there were no alternative such as recovery agents? These companies should not be banned collectively for the errant actions of a few, but strictly regulated like other financial services.
Hong Kong needs a market-driven and independent commercial alternative to legal aid. Without that, the Legal Aid Department becomes a de facto court, making judgments on applicants' cases and precluding them from a full legal hearing.
My company, Remedy Asia, has been operating in Hong Kong for nearly eight years without complaints from any of our clients. We operate a parallel and nearly identical system to supplementary legal aid but without an application fee, financial contribution or means testing. We have helped numerous clients achieve compensation who were rejected by the Legal Aid Department on the grounds of lack of merit.