For a Debt Collection Agency to operate in Hong Kong, does it need a license? If yes, to which Government department one has to apply?
Under the current Hong Kong laws, Debt Collection Agencies (DCAs) are not under any licensing regulation.
However, if a Debt Collection Agency (DCA) is employed by an institution that is suspected to have used improper or illegal means in its debt collection, the Police will co-ordinate their efforts with the relevant regulatory authorities to enforce the laws.
Banks are under the supervision of the Hong Kong Monetary Authority, and Money Lenders are licensed by the Police Force. Such supervisory authorities shall then keep watching on the institution that employs the DCA in a bid to pursue the matter and take appropriate follow-up actions.
In addition to law enforcement, the Police will take the initiative to publicize successful enforcement operations and prosecution actions to deter improper debt collectors or DCAs from engaging in illegal debt collection practices.
This Credit Insight is an extract from the book Happy Customers Faster Cash, Hong Kong Edition and on sale at Amazon.
A guide to effective communication in financial Customer Relationship Management with a focus on compliance and credit management for Hong Kong companies. A chapter is dedicated to discussing various aspects of Hong Kong company credit reports.
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Alexander has over 25 years of experience in Business Information Management and Information Technology. Previously, he has held leadership positions in the world’s leading Business Information providers, including Managing Director of Thomson Reuters Asia, and General Manager of Dun & Bradstreet (D&B), Hong Kong and Taiwan. In addition, he personally managed Hong Kong's Commercial Credit Bureau while working with D&B, and the Consumer Credit Bureau through his directorship at TransUnion Limited.