On 24 Jan 2025, the HKMA published Complaints Watch Issue No. 25, reporting a 32% annual increase in banking complaints to 2,039 cases in H2 2024, with account operations (640 cases) and lending practices (178 cases) as top concerns. The bulletin reinforced existing COBP requirements on credit card liability caps (HK$500), mandated fair treatment of borrowers during third-party debt collection, and highlighted exemplary bank practices in resolving media-sensitive ATM disputes.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Complaint Statistics
On 24 Jan 2025, the Hong Kong Monetary Authority (HKMA) published Complaints Watch Issue No. 25, highlighting a 32% year-on-year increase in banking complaints to 2,039 cases in the second half of 2024. The most significant rise was in complaints about banking account operations (640 cases, +64%), attributed to enhanced bank monitoring and police-bank intelligence sharing following evolving fraud trends. The HKMA urged banks to improve customer communication to minimise inconvenience while maintaining public confidence in fraud prevention measures.
Handling Media Enquiries on Customer Complaints
The HKMA cited a case where a bank successfully resolved an ATM deposit discrepancy complaint through thorough investigation, CCTV review, and transparent media engagement. The bank verified transaction accuracy, confirmed deposit slip consistency, provided legal advice-based responses, and accommodated the complainant’s request for CCTV review subject to legal compliance. The HKMA noted this exemplifies best practices for banks handling similar ATM-related disputes, emphasising reputation protection and fair customer treatment.
Debt Collection by Third-Party Purchasers
The HKMA stressed that banks selling debts to third parties must ensure borrowers continue to be treated fairly under existing regulatory requirements. In a recent case, a finance company’s debt collection efforts were deemed unreasonable for failing to provide debt proof and ignoring the Limitation Ordinance (six-year statute of limitations). The HKMA clarified that banks must include binding requirements in debt assignment agreements to mandate third-party adherence to good market practices and complaint-handling standards, with mechanisms for borrowers to seek bank assistance if collectors act improperly.
Liability for Unauthorised Credit Card Transactions
The HKMA reiterated the Code of Banking Practice (COBP) Section 39.3 requirements, confirming cardholders’ maximum liability for unauthorised transactions is capped at HK$500 unless they acted fraudulently, with gross negligence, or failed to report card loss promptly. The HKMA reminded banks that 'gross negligence' is a high threshold, and they must provide clear explanations if exceeding the HK$500 limit. This follows the HKMA’s April 2023 circular emphasising banks must consider all case-specific circumstances when assessing liability.
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