The Hong Kong government is considering implementing a cap on unsecured personal loans in a bid to address the growing issue of foreign domestic helpers (FDHs) overborrowing, Secretary for Labour and Welfare Chris Sun Yuk-han announced.
In a written response to lawmakers, Sun revealed that the police recorded nine cases of harassment inflicted on FDH employers due to debt collection in 2023 – the highest number in five years. The outstanding debt involved ranged from HK$1,000 to HK$16,800.
“The government is reviewing the existing regulations on money lenders, including exploring setting a cap on unsecured personal loans based on the monthly income of borrowers, alongside enhancing publicity and education,” Sun said.
The public consultation period on the proposed changes is planned to commence in the first half of 2025, he added.
The labor chief also reported a significant drop in cases of suspected “job-hopping” among FDHs. In 2023, 1,557 visa applications were referred to a special duties team for follow-up, with 502 applications eventually rejected.
This represents a substantial decline from the 5,844 and 2,833 cases recorded in 2021, which Sun attributed to the authorities’ promulgation of a revised Code of Practice for Employment Agencies in May.
“‘Job-hopping’ among FDHs has significantly improved following the implementation of the revised code,” Sun noted.
The proposed crackdown on unsecured loans and the improvement in “job-hopping” cases underscore the Hong Kong government’s efforts to address the challenges faced by the city’s vital FDH workforce, which plays a crucial role in supporting households across the territory.
