How coronavirus pushes Hong Kong domestic workers into debt traps

Job uncertainties and pressure to support families under lockdowns in their home countries mean many helpers are struggling with debt and threats

Experts are calling for greater monitoring and regulation of the lending industry amid instances of predatory practices

Reading Time:8 minutes

Foreign domestic workers in Central, Hong Kong. Photo: Nora Tam

Published: 7:45am, 3 May 2020Updated: 7:45am, 3 May 2020

When Rose, a Filipino domestic worker in Hong Kong, learned that a relative had developed cancer, she felt she had no option but to turn to a loan company. The migrant worker, who has lived in the city for about a decade, borrowed about HK$20,000 at the end of last year so she could help with the necessary medication and treatments.

Rose promptly started paying back the loan in HK$3,000 monthly instalments – more than half of her salary. But then the coronavirus crisis hit Hong Kong late in January, souring her relationship with her employer. Rose, 45, was suddenly fired about a month ago and left with no savings or backup plan.

“I am under a lot of stress. My head hurts because I can’t stop thinking,” she says, fighting back tears.

Her anxiety stems from the fact that she is now unable to support her family in the Philippines, while being threatened by a lending company in Hong Kong.

Police officers ask foreign domestic helpers gathered in Central, Hong Kong, to disperse as a measure against the coronavirus. Photo: Edmond So

“They send me more and more messages every day. I hope they consider this situation,” she says. “I will pay, but now I don’t really have money. I don’t know what to do.”

The coronavirus crisis has brought additional financial hurdles and further pushed foreign domestic workers in Hong Kong like Rose into debt traps. While some are unable to pay back their loans, others have been forced to borrow more money from friends, licensed money lenders and loan sharks.

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