Domestic helpers are rightly regarded as a pillar of Hong Kong’s “hidden” economy: the city’s estimated 340,000 migrant workers provide affordable childcare, housekeeping and other services, allowing a wider swath of the population to join the workforce.
Unfortunately, donors are far more visible to moneylenders who cheat and then demand repayment while threatening workers and employers.
Authorities, aid organisations and employers of helpers need to combat such exploitation through increased awareness and improved monitoring.
An NGO focusing on family and helper issues recently warned of an alarming rise in fraud cases, with at least 30 Hong Kong employers seeking help alleging that their helpers had been duped into taking out loans at exorbitant interest rates.
The Global Coalition for Sustainable Development of Home Services said it receives enquiries about such issues almost daily and is aware that employment agencies are dealing with more cases.
The coalition’s director, Christy Lam Hau-yu, described a common aggressive tactic used by debt collectors – “they paint their employers’ houses red” – and stories of domestic helpers being beaten up by loan sharks.
Police reports said the harassment did not stop in many cases, some involving loan companies based outside the city. Debt collectors threatened employers and workers through phone calls and WhatsApp messages. Some received fake indecent photos of their children or their employers.
In these cases, most employers terminated their contracts with the helpers. But it would be a mistake to put all the responsibility on the workers, who have little support in financial planning. Many low-paid helpers face intense pressure to send money home to family and friends, as well as fees to secure work.
The coalition is calling on the government to consider ways to regulate the use of overseas lending companies and step up educational activities. Authorities should consider the coalition’s proposal to limit loan amounts for domestic workers with contracts of six months or more to two months’ salary.
There are more than 2,000 licensed moneylenders in the city. Authorities need to review regulation of moneylenders and debt collectors, as well as the legal ceiling on lending interest rates of 48 percent per annum.
Employer associations, NGOs and consulates should pursue programs to promote financial prudence among donors and encourage workers to speak up to their employers if they need financial assistance. While the recent cases may not seem significant, their increase in frequency and change in tactics are alarming.
