Debt Collections Handbook Hong Kong 2018

Debt Collection Handbook

  • Hong Kong
  • Landbouw,
  • Automotive/Transport,

24 sep 2018

Having drawn from the expertise of Atradius Collections' local offices, the International Debt Collections Handbook explains the different regulations and procedures for debt collections in Hong Kong.

Amicable collections

General information

 

 

 

 

Handbook Report Page - Amicable Phase

 

 

 

 

Atradius Collections deals directly with the collection processes through our experienced and professional debt collectors. Hong Kong is a cosmopolitan city with a mix of foreign and local capital companies from large multinationals to small and medium enterprises. Our collectors are proficient in determining the best strategy to pursue payment from many different types of debtors. The legal languages are Chinese and English, with Cantonese as the country’s most widely spoken language, and traditional Chinese the most common written language. All written correspondence is sent to debtors in English. Hong Kong has a small geographical area, and our collectors can perform site visits to debtors if the situation requires it.

Local agents

We can use a local agent or a local debt collection agency (LDC) to trace the status of the debtor and make a site visit to them if appropriate. A trace report is used to find out all information on the debtor, such as if the debtor is still trading and the number of staff the debtor has in their office. As well as producing a trace report, the LDC can also help collect monies.

Interest

There is no statute or regulation that governs interest charges. They are freely negotiable between the buyer and the seller and should be clearly stipulated in the contract. It is not common practice to charge late payment interest during the amicable phase, as debtors usually refuse to pay.

Debt collection costs

In Hong Kong, debt collection costs are not chargeable to debtors unless stipulated in the contract or obtained by a judgment from the court.

The Debt Collections Handbook presents a snapshot of Hong Kong's economic situation and covers the following topics:

  • Accepted and most common payment methods
  • Retention of title
  • Legal procedures
  • Enforcement in debt
  • Insolvency proceedings

To read more about steps and procedures undertaken in debt collections in Hong Kong:

 

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Disclaimer

De informatie in dit document wordt uitsluitend ter algemene informatie verstrekt en hieraan kunnen geen rechten worden ontleend. De toepasselijke voorwaarden zijn te vinden in de polis of de betreffende product- of dienstverleningsovereenkomst. Niets in dit document mag worden opgevat als strekkende tot enigerlei recht, verplichting, verantwoordelijkheid of advies aan de zijde van Atradius en derhalve ook niet tot enigerlei verplichting tot het uitvoeren van due diligence op afnemers of ten behoeve van uzelf. Indien Atradius due diligence op een afnemer uitvoert, gebeurt dit ten behoeve van haar eigen acceptatiedoeleinden en niet ten behoeve van de verzekeringsnemer of enige andere persoon. Daarnaast zijn noch Atradius noch enige aan haar verbonden ondernemingen, deelnemingen of dochterondernemingen aansprakelijk voor welke directe, indirecte, speciale, incidentele of gevolgschade dan ook voortvloeiende uit het gebruik van de in dit document opgenomen informatie.