FTU urges Hongkongers to beware of companies offering ‘free’ loan balance transfers

The public is being urged to be wary of third-party companies claiming to be affiliated with banks that obtain personal data and prey on borrowers with “free” loan balance transfers.

The Federation of Trade Unions said it had received a number of such complaints, in which clients of banks receive telemarketing calls from “wealth management centres” offering to consolidate loans with better interest rates, only to charge them exorbitant administrative costs later.

These companies would often claim that they are “internal operations” of a bank and mislead customers into signing contracts. The third-party company is often able to name the person, identify their bank and cite information about the size of their loan and their repayment schedule.

Lawmaker Wong Kwok-hing said he suspected the banks may have been selling the data to a third-party and breaching privacy.

“This is terrifying,” he said. “I believe these are not isolated cases and we urge all bank customers to be on the alert.”

Wong said he would take the complaints to the Monetary Authority, Office of the Privacy Commissioner and police.