Receiving Harassment Calls from Finance Companies? An Employer's Self-Protection Guide to Foreign Domestic Helper Loans

Procedure for Handling Harassment Calls from Finance Companies

In recent years, cases of borrowing by locally completed contract workers and current foreign domestic helpers have increased, giving rise to situations where finance companies harass employers. Many employers suddenly receive calls from self-proclaimed finance companies demanding that they repay debts on the grounds that "your worker owes us money," or even applying pressure. Such debt collection practices targeting helpers not only disturb household peace but may also have breached the law. The following first clarifies the boundary between lawful debt recovery and unlawful harassment, then provides an immediate response checklist.

Distinguishing Lawful Debt Recovery vs Unlawful Harassment—Three Legal Red Lines

Finance companies have the right to recover debts from the debtor personally, but once the target shifts to an employer who is not the debtor, strict legal boundaries must be observed. Under Hong Kong's Personal Data (Privacy) Ordinance, finance companies must not disclose debt details to non-debtors, including the outstanding amount, loan contract contents, and the debtor's identity information. Meanwhile, section 24 of the Crimes Ordinance stipulates that any person who threatens another with intent to alarm or to cause the other to do or omit to do something commits a criminal offence. In other words, if a finance company applies pressure with phrases such as "we'll come to your home" or "we'll make a scene at your office," this may already constitute criminal intimidation.

Employers must remember: finance companies must not disclose debt details to non-debtors, nor may they harass third parties through intimidation or persistent calling. Any conduct crossing this line should be documented and considered for reporting.

Immediate Response Checklist Upon Receiving Harassment Calls

When facing debt collection calls regarding helper borrowing, emotional management and evidence preservation are equally important. The following checklist can be followed in order:

• Record the caller's number, time, company name, and conversation content: Take screenshots or make notes on your phone immediately; if recording functionality is available, record lawfully where permitted.
• Clearly state "I am not the debtor; stop calling me": Use a firm tone and avoid committing to any repayment arrangement.
• Send a written or emailed request to the finance company to stop contacting you: Keep a copy as evidence for future complaints.
• Report to the police for record: This is the "police reporting for harassment calls" step—bring call records to the nearest police station and obtain a report number.
• Complain to the Registrar of Money Lenders: Report the finance company's improper debt collection conduct to the regulator.

It is worth noting that helper borrowing itself is a common helper conduct issue. Employers should identify warning signs early, such as the helper frequently answering mysterious calls, being emotionally unstable, or suddenly requesting salary advances, so as to intervene early.

Boundaries of Employer's Legal Liability—Do You Need to Repay the Money?

This is the question employers care about most: if a helper is in debt, does the employer need to repay on their behalf? The legal answer is clear, but finance companies' pressure tactics often confuse employers. The following breaks it down one by one.

Legal Separation Between Employer and Helper Debts

Under Hong Kong law, when a current foreign domestic helper borrows money in their personal name, the debt liability is borne entirely by the helper, and the employer bears no repayment responsibility whatsoever. The boundary of employer liability for debts may only be implicated in the following exceptional circumstances: the employer voluntarily signed a guarantee document, or the loan involved misuse of the employer's address and personal information. In the latter case, the employer should immediately report to the police and notify the relevant finance company.

Helper Borrowing and Risks Under the Employment Ordinance

Although helper borrowing is a personal matter, debt pressure often evolves into disciplinary and conduct issues. When a helper is absent from work, performs poorly, or even handles debt matters during working hours due to debt problems, the employer may take action under the Employment Ordinance and the employment contract, including verbal warnings, written warnings, and termination of the employment contract under reasonable circumstances. However, note that termination involves calculations for payment in lieu of notice, annual leave pay, and other items; employers should seek professional advice to avoid falling into legal traps.

In practice, debt problems often coexist with other helper conduct issues, such as a lax work attitude or leaving the workplace without authorization. Employers should incorporate borrowing-related conduct into the overall disciplinary management framework rather than handling it separately, to maintain consistency in management.

Prevention and Evidence Management—Home CCTV, Warning Letters, and Borrowing Prevention

Rather than remedying matters afterward, it is better to prevent them beforehand. Employers can establish a complete evidence and management foundation through lawful home CCTV, clear borrowing policies, and a warning letter system.

Legality of Home CCTV and Balancing Helper Privacy

Regarding the legality of home CCTV, Hong Kong's Personal Data (Privacy) Ordinance requires employers to collect personal data for lawful purposes, collect only the minimum amount of data, and inform the data subject. Before installing CCTV, employers should inform the current helper in writing of the recording scope and purpose, and obtain a signed acknowledgment. Installation locations should be limited to common areas such as the living room, kitchen, and entrances/exits; installation in bathrooms, toilets, and the helper's private rest space is strictly prohibited, as it may infringe privacy.

If you discover the helper turning off the CCTV, the employer should first understand the reason and record the time and circumstances of the shutdown. If the shutdown is related to suspected misconduct, it may serve as one basis for disciplinary follow-up. When suspecting helper theft, CCTV footage can serve as evidence; the employer should retain the original files and seek police assistance in accordance with the helper theft police reporting procedure, and must not publicly release footage or conduct public shaming on their own.

• Before installing CCTV, notify the helper in writing of the recording scope, purpose, and retention period.
• Obtain the helper's signed acknowledgment and keep a copy.
• Regularly check that the CCTV is functioning and has not been turned off or obstructed.
• Use footage only for lawful purposes and avoid leakage.

Helper Borrowing Prevention Measures and Use of Warning Letters

Helper borrowing prevention should begin at onboarding. Employers can clearly state the borrowing policy at onboarding, for example requiring helpers to truthfully declare their financial situation and prohibiting the use of the employer's address for borrowing purposes. Regarding regular checks, employers may only understand the situation within lawful and reasonable bounds, such as through observation in daily communication, rather than unauthorized inspection of the helper's private documents.

If a helper violates borrowing-related rules, the employer may issue a helper warning letter. A helper warning letter template should include: a description of the misconduct, relevant dates and evidence, specific matters requiring improvement, a deadline for improvement, and consequences of violation (including possible termination of contract). After issuing the warning letter, the employer should follow up on whether the helper improves and keep signed receipt records. Incorporating borrowing prevention into the overall helper conduct issue management framework helps establish consistent and lawful management standards.

Crisis Escalation Handling—From Warning to Contract Termination

When borrowing problems worsen into absenteeism, theft, or persistent debt collection harassment, employers must escalate handling according to procedure to ensure every step complies with legal requirements.

Disciplinary Ladder and Lawful Procedure for Contract Termination

Disciplinary action should proceed step by step: first issue a verbal warning and record it, then issue a written warning, and only consider termination if the situation persists and is serious. Termination of employment contract calculations must take into account payment in lieu of notice, unpaid annual leave pay, severance payment, and other items; as for long service payment, it is only payable after 5 years of continuous employment and departure not due to serious misconduct—employers must not miscalculate. If the helper is involved in criminal conduct such as theft, the employer should report to the police; police reporting and contract handling may proceed in parallel, but obstruction of judicial proceedings must be avoided.

Escalation Actions When Harassment Continues

If finance company harassment continues, the employer should again make a police report for harassment calls and notify the Immigration Department and Labour Department, generally after confirming that the helper is involved in serious debt problems or has gone missing. When compiling the evidence package, it should include call records, written correspondence, CCTV footage, and copies of warning letters for use by the police and regulators.

• Compile all call records, times, and the other party's company name.
• Keep written requests to stop contact and the finance company's replies.
• Back up relevant CCTV footage with date and time noted.
• Attach warning letters and signed receipt records.
• Submit required documents to the police, the Registrar of Money Lenders, the Immigration Department, and the Labour Department.

Frequently Asked Questions (FAQ)

Q: A finance company called me—do I need to repay the helper's debt?
A: No. Under Hong Kong law, a current foreign domestic helper's personal debts are unrelated to the employer, and the employer bears no repayment responsibility. Unless you have signed a guarantee document or your personal information has been misused for borrowing, the finance company has no right to pursue you. If the other party continues to call, intimidate, or disclose debt details to third parties in the manner of finance company harassment, it is unlawful; you should record evidence and consider making a police report for harassment calls.

Q: What can I do if the helper goes missing or is absent from work after borrowing money?
A: First record the dates of absence and notification records, and request a return to work in writing. If absenteeism is serious, handle it according to disciplinary procedures under the Employment Ordinance, including issuing a helper warning letter, and ultimately terminating the employment contract. Termination of employment contract calculations must take into account payment in lieu of notice, unpaid annual leave pay, etc.; long service payment is only payable after 5 years of continuous employment and departure not due to serious misconduct. At the same time, notify the Immigration Department to avoid subsequent liability, and include the incident in the helper conduct issue management records.

Q: Home CCTV captured footage of suspected helper theft or someone coming to collect debts—can I report to the police?
A: Yes. Provided the home CCTV is lawful (prior notification required; must not be installed in bathrooms or the helper's private rest space), the footage obtained can serve as evidence. If helper theft is suspected, retain the footage and make a helper theft police report; if someone comes to collect debts or calls to harass, you can use the CCTV footage and call records to make a police report for harassment calls and complain to the Registrar of Money Lenders.