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.
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.
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.
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: