Domestic helpers are rightly credited with providing the backbone of the “hidden” side of Hong Kong’s economy. The estimated 340,000 migrant workers in the city offer affordable childcare, housekeeping and other services that allow a much larger segment of the population to join the workforce.
Unfortunately, helpers are far more visible to money lenders who often use deception to push high-interest loans and then threaten workers and their employers while demanding repayment.
Authorities, advocacy groups and helpers’ employers must counter such exploitation by raising awareness and improving oversight.
An NGO focusing on family and helper issues recently warned about a disturbing rise in deception cases. At least 30 Hong Kong employers sought help after their helpers were deceived into taking out loans at exorbitant rates.
The Coalition of Global Home Service Sustainable Development said it had been receiving almost daily inquires about such problems and was aware that employment agencies were handling more cases.
Coalition president Chrystie Lam Hau-yiu related stories of “red paint being thrown on employers’ homes” – a common strong-arm tactic used by debt collectors – and a domestic helper being beaten by loan sharks.
Police reports did not end the harassment in many cases, and some involved loan companies based outside the city. Debt collectors intimidated employers as well as workers through phone calls and WhatsApp messages. Some received photos of their children and fake obscene pictures of employers.
Most employers in these cases terminated their helpers’ contracts. But it would be wrong to lay all the blame on workers, who receive little support when it comes to financial planning. Often on low salaries, most face intense pressure to send money home to family and friends as well as fees to secure jobs.
The coalition has urged the government to look at ways to regulate use of overseas loan companies and step up education efforts. Authorities should consider the group’s suggestion that domestic workers with contracts lasting six months or longer should be limited to borrowing no more than the equivalent of two months’ salary.
There are more than 2,000 licensed money lenders in the city. Authorities should review regulation of lenders and debt collectors, and the statutory interest rate lending cap of 48 per cent per annum.
Employers’ organisations, NGOs and consulates should follow through on plans to promote financial prudence among helpers and encourage workers to speak openly with employers if they need financial help. The recent cases may not seem like a large number, but their rising frequency and shifting tactics should raise alarm.
