Banks step up debt collection

Staff reporter

Hong Kong's banks deployed over 548,500 debt collection agent accounts in the second half of last year, up by 25 percent from the first half, as more overdue payments were recorded amid the economic downturn.

The Hong Kong Monetary Authority has issued a notice to banks, urging them to maintain proper systems and controls as the number of accounts allocated to debt collection companies increases.

Banks are advised to closely monitor the activities of these companies to ensure compliance with relevant regulations and fair treatment of customers.

The notice revealed that in the second half of last year, 12 banks received a total of 34 complaints related to debt collection companies, an increase from the 28 complaints received by 11 banks in the first half of the year.

The average incidence of complaints per 1,000 accounts assigned was 0.06 in the second half of last year, unchanged from the first half of the year, the HKMA said.

The percentage of accounts 60 or more days past due was up 8 basis points from the previous year to 0.7 percent at the end of November 2024, according to credit data service provider TransUnion.