double-skinned crabsVietnamese crab exporter
Advertisement
Hong Kong society
Opinion
SCMP Editorial
Editorial
SCMP Editorial

Tightened rules for Hong Kong’s money lenders will protect helpers

Moves to regulate the moneylender sector must be accompanied by strengthening law enforcement and stepping up education efforts

2-MIN READ2-MIN
1
Listen
The Asian Migrants Coordinating Body holds a protest to call for a living wage and better working conditions for migrant domestic workers in Hong Kong, in front of the Central Government Offices, on May 1. Photo: Nora Tam
SCMP Editorial
Editorials represent the views of the South China Morning Post on the issues of the day.

Hong Kong’s domestic helpers have easy access to unsecured loans from licensed money lenders. But they are often in no position to repay them. Many end up being sucked into a damaging spiral of debt. There is a need for tighter regulation.

The government’s measures to strengthen rules for the sector to combat “excessive borrowing” among low-income workers will help tackle the problem. They are a step in the right direction.

Monthly repayments for unsecured personal loans to such borrowers will be restricted. They will be capped at 35 per cent of income for people earning HK$6,000 a month or less and 40 per cent for those on salaries of HK$6001 to HK$12,000. The new requirement, from August 1, should ensure people taking out loans are much better equipped to repay them.

A ban will be imposed on money lenders requiring applicants to provide referees. This is to prevent friends or employers of the borrowers from being targeted by debt collectors. It is a sensible step.

Select Voice
Select Speed
1x
AI-generated voice