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Banking Code of Practice
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Following is a question by the Hon Fred Li and a written reply by the Secretary for Financial Services, Mr Rafael Hui, in the Legislative Council today (Wednesday):
Question:
At present, when credit card users or loan borrowers default on repayment, some banks and finance companies make enquiries or seek to recover the debts from their referees, thus causing nuisance to the referees. In reply to a question in this Council in January this year, the Government stated that the matter would be studied by a Working Party to be formed by the Hong Kong Monetary Authority and the banking industry associations to develop a "Banking Code of Practice". In this connection, will the Government inform this Council:
(a)
(b)
when such study will be completed and its recommendations implemented; and
whether, in studying the matter, consideration will be given to:
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(ii)
requiring applicants to produce their referees' written consent as well as requiring banks and finance companies to contact the referees to verify their consent; if not, why not;
stipulating the provisions concerning the responsibilities of referees and requiring banks and finance companies to inform referees of such provisions in writing; if not, why not; and
(iii) requiring banks or finance companies to inform the referees concerned in writing when credit card users or loan borrowers become insolvent and have disappeared, and to refrain from recovering the debts from the referees or passing on the personal data of the referees to debt collecting companies, if not, why not?
Reply:
(a)
The Code of Banking Practice (the Code) is expected to be completed by the end of 1996. In the meantime, the Hong Kong Monetary Authority (HKMA) has already taken steps to address some of the issues before the publication of the Code. These include
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