On 10 Sep 2024, the HKMA reported that 28 complaints against debt collection agents (DCAs) were received by 11 AIs in H1 2024, with a complaint incidence rate of 0.06 per 1,000 accounts. The HKMA reminded AIs to rigorously monitor DCA activities and maintain effective oversight systems, consistent with existing regulatory expectations.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Introduction
On 10 Sep 2024, the Hong Kong Monetary Authority (HKMA) issued a communication to all Authorized Institutions (AIs) regarding the results of its industry survey on complaints against debt collection agents (DCAs) employed by AIs for the first half of 2024, emphasizing supervisory expectations for AI oversight of DCAs.
Key Findings from H1 2024 Survey
The survey revealed that 33 AIs engaged 19 DCAs to manage 436,770 accounts during H1 2024, resulting in 28 complaints against 8 DCAs received by 11 AIs (compared to 22 complaints against 5 DCAs by 6 AIs in H2 2023). The complaint incidence rate was 0.06 per 1,000 accounts (vs. 0.05 in H2 2023), with three complaints lodged by unrelated third parties. One breach involving unauthorized disclosure of debtor information by a DCA to a family member was reported, prompting corrective action by the relevant AI.
Regulatory Reminder
The HKMA reiterated that AIs must vigilantly monitor DCA activities and maintain robust systems and procedures for oversight, as mandated under existing regulatory frameworks. This communication serves as a supervisory reminder to ensure AIs uphold their obligations regarding third-party agent conduct, without proposing new regulatory requirements.
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