If the behaviour is violent or potentially a threat to you or your employer, report the loan shark/collecting agent to the Hong Kong Police (999).

Remember to keep calm and do not let insults or threats put you down.

Contact us immediately for a free confidential one-to-one financial counselling session to receive impartial financial advice. Our counsellors speak English, Tagalog or Bahasa Indonesia. We do not lend money. We only provide neutral advice. You do not have to deal with this on your own. Seek help as soon as possible.

If you feel comfortable, and if your employer is open to it, you could have an open conversation with your employer about your financial plans and difficulties, including your goals, debts or worries. It may be difficult for you to open up to your employer about your financial difficulties but doing so now can prevent a bigger issue from occurring if the loan shark/collecting agent contacts them. If the agent contacts your employer first, they might understandably be scared and misunderstand the situation. Be open and honest with your employer. Assure them that you are seeking a solution so that you can continue to focus on your work and not be distracted by stress. This might help clear any misunderstanding and also help them feel more comfortable in communicating with you about this issue. 

According to Hong Kong law (The Money Lenders Ordinance), a loan with an effective interest rate that exceeds 36% per year is presumed to be extortionate. This means that before a court will enforce repayment of the loan, the lender must prove that charging such a high interest is not unfair or unreasonable. Loans with interest rates above 48% are illegal.

The following types of fees are also illegal and, if charged, the loan cannot be enforced: 

• fees for processing or establishing your loan;

• most types of late charges.

If in doubt, contact us for a free confidential one-to-one financial counselling session to receive impartial financial advice. You can seek legal advice from charities HELP for Domestic Workers or Mission for Migrant Workers, or visit a district office of the Duty Lawyer Service for free legal support.

It’s understandable that you might want to help your friend, especially if she needs the money urgently or has helped you a lot in the past. However, it is okay to say ‘no’ to friends sometimes if it means protecting your hard-earned money. 

We do not advise you to sign a loan for your friend as a guarantor - this means that you are agreeing to repay the loan amount if your friend is unable to pay and defaults on the loan. Only take this risk if you can afford it.

These are some points to consider before signing as a guarantor:

• Are you able to pay someone else’s debt if that person defaults (i.e. does not pay) on that loan?

• Do not sign as a guarantor unless you know who the document is for and how much money you are agreeing to pay.

• Exercise extreme caution before agreeing to pay “all moneys” owed by the borrower because if they default, you will have to pay everything the borrower owes (including interest).

Make sure you also understand the obligations of agreeing to be a ‘witness’ or a ‘referee’, even if you’re not a guarantor. Ask what this entails. Some unethical lending agencies will try to hold you accountable as a guarantor even if you have only agreed to be a witness/referee. 

Attend our Money and Family workshop to learn about how to have difficult conversations with family and friends, and how to say ‘no’ when needed.

The following cannot be taken as security for a loan:

• HKID card;

• passport;

• national ID card;

• bank savings or account book; or

• photographs of you, your guarantor or your family.

No one is allowed to keep your passport except for you and the authorities. If you have given any of these items as security/collateral, ask the money lender to return them immediately. If they refuse, contact the Hong Kong Police (999) and your consulate.

You can call the Indonesian Consulate at +852 6773 0466 or the Philippine Consulate at +852 9155 4023.

If you think you may have signed an illegal or extortionate loan agreement you may consider taking some (or all) of the following steps:

• Attempt to renegotiate it with the money lender, pointing out that it is extortionate or illegal.

• Lodge a complaint with the Hong Kong Police Money Lenders Unit at +852 2860 3574.

• Seek legal advice. You can contact charities HELP for Domestic Workers or Mission for Migrant Workers, or visit a district office of the Duty Lawyer Service for free legal support.

First, identify and understand what you need the money for. Make sure it is for something very important and that you are able to meet your repayment obligations. Here are some points to consider when deciding where to borrow money:

Loan Company/ Money Lenders

If you do feel you definitely have to take out a loan, explore several options and choose a loan company which you feel comfortable with and which offers you fair terms. We encourage you to consider lending from an ethical source. Do not borrow from unlicensed money lenders as that can leave you unprotected and vulnerable.

As much as possible, avoid getting into a cycle of debt and make sure you are protected. Before signing a loan, first ask yourself:

• Is the loan for a ‘need’ or a ‘want’?

• Is the lender licensed? Unlicensed money lenders give illegal loan terms.

• Will I receive certified documents (e.g. contracts, receipts, statements) for my records?

• Do I understand the loan terms? Can I afford the monthly repayment and the late payment fees?

• Will the lender keep my passport? It is illegal for anyone to do this except for me and the authorities.

Speak to your employer

If possible, talk to your employer first before taking out a loan. Explain what the loan is for and let them know you are thinking of borrowing from an agency. If they are open to it and can afford it, you could ask for a salary advance and arrange legal payment terms with them rather than taking out a loan with an agency or friends. This can help to avoid the very high interest rates that loan companies (and sometimes friends) will charge. If you come to an arrangement with your employer, be sure to put it in writing and to honour your side of the agreement. Note that loan repayment to your employer cannot legally be automatically deducted from your salary and needs to take place in a separate transaction between you and your employer.

Friends, relatives or individuals

We do not advise you to borrow money from friends, relatives or other individuals as this can you leave you unprotected and vulnerable. Similarly, we do not advise you to sign a loan for your friend or relative as a guarantor - this means that you are agreeing to repay the loan amount if your friend is unable to pay and defaults on the loan. Only take this risk if you can afford it.

Banks receive and process deposits and withdrawals. They safeguard your money for you. Banks also give out loans, but they are not the same as loan companies. 

Loan companies give out loans only (they do not safeguard your money) and will require you to make repayments for your loan. Loan companies usually charge higher interest rates than banks, so be careful not to get confused with the use of the term “bank” to refer to loan companies.

Many loan companies create special offers targeted specifically to migrant domestic workers that try to tempt you into taking out a loan. Be very careful as the terms can often be unfair or illegal.

Think first before taking out a loan

If you do feel you have to take out a loan, explore several options and choose a loan company which you feel comfortable with and which offers you fair terms. We encourage you to consider lending from an ethical source. As much as possible, avoid getting into a cycle of debt and make sure you are protected. Before signing a loan, first ask yourself:

• Is the loan for a ‘need’ or a ‘want’?

• Is the lender licensed? Unlicensed money lenders give illegal loan terms.

• Will I receive certified documents (e.g. contracts, receipts, statements) for my records?

• Do I understand the loan terms? Can I afford the monthly repayment and the late payment fees?

• Will the lender keep my passport? It is illegal for anyone to do this except for me and the authorities. 

Learn how to plan your future expenses to avoid taking unnecessary loans through our Money Wise Migrants workshop. 

If seeking employment while in Hong Kong

If you are already in Hong Kong, you can legally be charged 10% of your first month’s salary for recruitment fees after successful placement, according to the Hong Kong Labour Department. If you are being charged more or if you are unsure about whether the employment agency is acting legally, speak to the Labour Department and your consulate. 

You can call the Labour Department’s hotline at +852 2157 9537 (dial Ext. ‘11’ for English, Ext. ‘17’ for Bahasa Indonesia and Ext. ‘19’ for Tagalog). 

You can also call the Indonesian Consulate at +852 6773 0466 or the Philippine Consulate at +852 9155 4023.

It might feel a bit scary to report the employment agency, and you might feel worried about your job security, but it is better to take action early on - paying very high illegal fees now can lead you into a cycle of debt, which can take a long time to escape. If you have already signed the contract with an employer, perhaps you could inform your employer about the agency charging you illegal fees. They might be able to provide help or support.

If seeking employment from the Philippines

If you are applying from the Philippines, it is not legal for employment agencies to charge any placement fees for domestic worker jobs in Hong Kong. If you’re asked to pay for this, refuse to pay. However, most agencies are aware of the law and instead of placement fees, they might charge you high training fees, medical fees and other fees for processing the visa. These fees are not regulated and agencies may charge very high fees, for example PHP 150,000; in reality these costs should not be more PHP 15,000 - PHP 20,000. Be aware that if you’ve already taken the TESDA you do not have to take the training again - you can just take the exam if your certificate is no longer valid.

If seeking employment from Indonesia

If you are applying from Indonesia, employment agencies are allowed to charge a maximum recruitment fee of IDR 14,780,400 for domestic worker jobs in Hong Kong. This should include all the costs of training, insurance, the medical and paperwork processing. In reality many domestic workers are told to pay more than this fee. If your agency is charging you more, you can refuse to pay this.

For any fees that you pay to your employment agency, always ask for a written receipt and double check that what is written on the receipt is correct.

No one can pressure you to take out a loan. The decision is entirely yours to make. Your employment agency provide you with a job, but they cannot force you to sign with a loan company. You should be cautious early on in the employment/loan process and do not be afraid to ask questions. 

Here are some other points to consider.

Is this legal?

According to the Hong Kong Labour Department, you can legally be charged 10% of your first month’s salary for recruitment fees after successful placement. If you are being charged more or if you are unsure about whether the employment agency is acting legally, speak to the Labour Department and your consulate. The Labour Department’s hotline is +852 2157 9537 (Dial Ext. ‘11’ for English, Ext. ‘17’ for Bahasa Indonesia and Ext. ‘19’ for Tagalog)

Know your rights

The ‘Understanding Your Rights’ manual by charity HELP for Domestic Workers provides detailed information on your rights and what you can do if they are not being respected. You can seek legal advice from charities HELP for Domestic Workers or Mission for Migrant Workers, or visit a district office of the Duty Lawyer Service for free legal support.

Speak to your employer

Before taking out a loan (whether you need the money to pay off your recruitment or other fees), try to include your employer in the conversation if possible - they might not be aware that you are being charged for recruitment or might be able to offer you support.

Think first before taking out a loan

If you do feel you have to take out a loan, know that you do not have to choose the loan company that your employment agency is referring you to. You can explore other options and choose a loan company which you feel comfortable with and which offers you fair terms. We encourage you to consider lending from an ethical source. As much as possible, avoid getting into a cycle of debt and make sure you are protected from risk. Before signing a loan, first ask yourself:

• Is the loan for a ‘need’ or a ‘want’?

• Is the lender licensed? Unlicensed money lenders give illegal loan terms.

• Will I receive certified documents (e.g. contracts, receipts, statements) for my records?

• Do I understand the loan terms? Can I afford the monthly repayment and the late payment fees?

• Will the lender keep my passport? It is illegal for anyone to do this except for me and the authorities.

For immediate help call:

• 999 - Hong Kong Police to report physical abuse.

• 18281 - 24-hour hotline of the CEASE Crisis Centre for assistance on sexual assault, sexual violence, domestic violence etc.

• 2375 5322 - Hotline for Rainlily, a charity providing support to victims of sexual violence.

If you experience any sexual violence, harassment or discrimination, you need to say NO firmly, write down what happened, talk to someone about it and get help. You are not alone in this. Sexual harassment, sexual discrimination and abuse are NOT your fault and they are illegal offences in Hong Kong.

The ‘Understanding Your Rights’ manual by charity HELP for Domestic Workers provides detailed information on your rights and what you can do if they are not being respected. You can seek legal advice from charities HELP for Domestic Workers or Mission for Migrant Workers, or visit a district office of the Duty Lawyer Service for free legal support.

Attend our Speak Up workshop to help you gain the confidence to speak up against harassment and abuse.