Complaints Against Debt Collection Agents Employed by Authorized Institutions

Our Ref: B1/1C
B9/67C

21 August 2009

The Chief Executive
All Authorized Institutions

Dear Sir/Madam,

Complaints Against Debt Collection Agents
Employed by Authorized Institutions

I write to inform you of the results of the industry survey on complaints against debt collection agents (DCAs) employed by authorized institutions (AIs) for the second quarter of 2009. Please see the Annex for details.

During the reporting period, 38 AIs used the services of DCAs. They together assigned 100,698 accounts to 23 DCAs.

A total of 22 complaints against 10 DCAs were received by 10 AIs (compared with 30 complaints against 12 DCAs received by 11 AIs in the previous quarter). The incidence of complaints per 1,000 accounts assigned decreased to 0.22 from 0.32 in the previous quarter. No complaints were lodged by unrelated third parties, compared with one in the previous quarter.

No instance of a breach of the Code of Banking Practice was reported during the quarter, compared with one in the previous quarter.

Yours faithfully,

Rita Yeung
Acting Executive Director (Banking Policy)

Encl.

c.c.

The Chairman, Hong Kong Association of Banks
The Chairman, The DTC Association
Secretary, Code of Banking Practice Committee
(Attn: Ms Jennifer Cheung - HKAB
Secretary for Financial Services and the Treasury
(Attn: Miss Clara Chan)

Annex

Survey on DCA complaints received by AIs - Q2/2009

Table 1: AIs using DCA service

Table 2: Number of DCAs employed by AIs

Table 3: Incidence of DCA complaints

Table 4: Status of complainants