A surging trend of employers of foreign domestic helpers (FDHs) being harassed by lenders and debt collectors has been observed as chaotic cases of helpers taking out unsecured, high-interest loans while being unable to repay them have spiked in recent years.
Advocacy groups have stated that online lending has garnered significant traction among FDHs, putting them at risk of excessive borrowing. Some even use expired contracts from former employers to secure loans.
Chrystie Lam Haa-iu, director of the Quadripartite Alliance for Harmonious Employment Practices (QAHEP), stated that the fundamental issue is domestic helpers are able to borrow fund without collateral, and there is no system in place for lenders to check borrowers' credit histories.
This allows the helpers to take multiple loans until they run into debt, flee, or shift the consequences to their employers, she added.
Lam indicated that QAHEP has observed an uptick in debt-related cases involving foreign domestic workers, with an average of over ten cases reported monthly. Employers have also reached out for assistance when faced with harassment from debt collectors.
The worst borrowing case, as Lam recalled, involved an FDH who obtained loans from 12 financial companies, with amounts ranging from a few thousand dollars to HK$30,000. Although the worker demonstrated diligence, the employer had to terminate her employment due to the mounting debt issues.
Lawmaker Frankie Ngan Man-yu also agreed to impose stricter regulations on unsecured loans to curb overborrowing.
He cited a case where a domestic helper owed ten to twenty thousands dollars across multiple lenders. By the time the employer became aware of the debt through loan statements, the worker had accumulated nearly HK$800,000 in principal and interest in debt.
The convenience and ease of using online lending platforms are what attract foreign domestic workers. Some platforms only require personal and bank details, a selfie with ID, employer details, and a video inside the employer's home to approve the loans.
These platforms often mimic licensed lenders and easily fool workers.
An FDH agency owner noted that with the minimum wage of HK$4,990 a month, helpers could be granted a HK$20,000 loan from the loan sharks. Some even disburse half the loan after requesting passports and employment contracts.
There is a case of one helper who borrowed HK$3,000 but received only HK$1,500 after fees, with a 10-day repayment window or penalty rates.
There have also been cases where foreign domestic helpers have successfully fled after shifting the debt onto their employers.
One employer was pursued for a debt incurred by a previous worker who had used the expired contract and left. Some of the FDHs will use the borrowed funds to escape to places like Europe, even boasting the behaviour by posting photos of themselves enjoying their "new life" on social media.
According to the Companies Registry, licensed money lenders harassing employers whilst pursuing domestic workers for debts has shown a growing trend. Fifteen cases were reported between early 2024 and April this year, with four cases occurring in the first quarter of 2025 alone.
All such cases have been reported to the police.
Debt collectors employ various harassment tactics as the number of cases grows more frequent. One notorious incident was during the Lunar New Year when an employer received an envelope containing joss paper for the dead.
Others have faced debt collectors showing up at their door with family photos frequently, forcing them to move out. Some employers are being threatened with edited and altered explicit images, asking them to repay their helpers' debts.
Some collectors have even gone as far as splashing the employers' doors with red paint or plastering debt-collection posters all over the front of their homes.
Apart from enhancing the regulation of unsecured personal loans and setting borrowing limits, advocacy groups are also urging authorities to hasten their efforts to establish a "centralized loan database" to monitor the situation.
Lawmaker Doreen Kong Yuk-foon suggested a multi-faceted approach, including mimicking Singapore by capping foreign domestic helper borrowing, blocking illegal lenders' websites, and revoking work visas for workers using illegal lenders.
(Khan Heeba Lazmi)
