Excessive borrowing can be weighed in Hong Kong visa decisions for foreign domestic helpers, government tells LegCo

Hong Kong's Immigration Department may consider excessive borrowing, when previous employers cite it as a reason for ending a contract early, in later visa and extension applications from foreign domestic helpers, Under Secretary Joseph Chan told the Legislative Council.

Previous employers of foreign domestic helpers (FDHs) in Hong Kong may give excessive borrowing as a reason for ending a contract early, and the Immigration Department (ImmD) can consider it when handling the helper's future applications for employment visas or extensions of stay, the Under Secretary for Financial Services and the Treasury, Joseph Chan, told the Legislative Council on 21 October. The SUN Hong Kong reported the reply on 23 October.

Chan was answering a question from lawmaker Elaine Chik, who said many FDHs incur debts from pre-departure training and intermediary fees before coming to Hong Kong and then borrow excessively after arrival.

"Previous FDH employers may provide the ImmD with reasons for premature contract termination, including excessive borrowing, for consideration by the ImmD when processing future applications for employment visas or extensions of stay from the FDHs concerned."

Chan said ImmD vets FDH employment visa applications by holistically considering multiple factors, including conduct and integrity, records provided by previous employers, and reasons for premature termination of employment contracts.

Other measures named in the reply

• Since August this year, money lenders face restrictions on unsecured personal loans to low-income earners, covering income, debt servicing ratio, total outstanding loan amount and repayment period, and they may no longer ask borrowers to provide loan referees.
• The Labour Department's Code of Practice says employment agencies should not give job seekers information about personal loans or advise, arrange, encourage or force them to borrow. Agencies that breach it may have their licences revoked or renewals refused.
• If organisations elsewhere are found improperly coercing FDHs into taking out loans, the Labour Department will inform the relevant governments and request follow-up action.
• The Labour Department works with consulates-general to include prudent financial management and avoiding excessive borrowing in orientation briefings for newly arrived FDHs, and distributes leaflets at FDH gathering places during holidays.

From June 2027, all money lenders in unsecured personal loan business will have to report borrowers' credit information to Credit Data Smart (CDS), and lenders with unsecured personal loans to borrowers earning below $12,000 a month must join CDS to check borrowers' credit information.

Chan said there is currently no evidence that the tighter rules have led low-income earners, including FDHs, generally to turn to illegal loans, and that the rules do not prohibit lawful personal borrowing. Police carried out nine large-scale arrest operations against loan-sharking and illegal debt collection in the first three quarters of this year.

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