Helper in Debt with Loan Sharks: What Are My Obligations as an Employer?

Overview

It is not uncommon for foreign domestic helpers to borrow money — sometimes from licensed moneylenders, sometimes from less formal sources. When repayment stops, employers can find themselves receiving debt collection letters or unexpected visits. The good news: you almost certainly have no legal obligation whatsoever, and collectors who contact you may themselves be breaking the law.

Are You Legally Liable?

No — unless you explicitly signed as a guarantor.

Simply employing a helper does not make you responsible for her personal debts. Hong Kong's Employment Ordinance (Cap. 57) and the Standard Employment Contract create no mechanism for employer liability for a helper's private borrowing.

What about acting as a "referee"?

Some moneylenders ask helpers to provide an employer as a referee on their loan application. A referee is not a guarantor. Under the Money Lenders Ordinance (Cap. 163), Licensing Condition 13, a referee's role ends the moment the loan is granted. The Financial Services and the Treasury Bureau (FSTB) states explicitly: "Under no circumstances is a referee liable for repayment of a loan."

Even if you agreed to be a referee, you owe nothing.

What Debt Collectors Can and Cannot Do

Under Money Lenders Ordinance (Cap. 163), Licensing Condition 10, licensed money lenders and their collectors are prohibited from contacting anyone who is not legally indebted to them — which includes you, unless you signed as guarantor.

Contacting you to ask about the helper's whereabouts, delivering letters to your address, or pressuring you to pay on her behalf is a breach of licensing conditions — a criminal offence carrying a maximum fine of HK$100,000 and 2 years' imprisonment.

What to Do If You Are Contacted

If there is any physical threat — property damage, paint splashing, gluing locks, intimidation: Call Police: 999 immediately. These acts are criminal offences under the Crimes Ordinance (Cap. 200) and Summary Offences Ordinance (Cap. 228).

For letters, calls, or non-violent visits:

1. Do not pay. You have no legal obligation.
2. Document everything — keep all letters; note the dates, times, and content of any calls or visits.
3. File a complaint with the Companies Registry Money Lenders Section:

• Phone: 2867 2634
• Email: mlu@cr.gov.hk
• Complaints are typically acknowledged within 10 calendar days.

1. Report to the Police Money Lenders Licensing Section: 2860 3574.
2. For suspected fraud or scams: Police Anti-Deception Coordination Centre: 18222.

Send a written notice to the lender stating that you are not the debtor, you did not guarantee the loan, and all contact with you must cease. Keep a copy.

If your home address is being misused — if collectors are using your address as the helper's contact address without your consent, this may breach the Personal Data (Privacy) Ordinance (PDPO, Cap. 486). File a complaint with the Office of the Privacy Commissioner for Personal Data at pcpd.org.hk.

Important Notes

• You are not required to share any information about the helper's current whereabouts with collectors
• You cannot deduct money from the helper's wages to repay her debt without her written consent — doing so would violate the Employment Ordinance
• If the helper is still in your employment, you may discuss the situation with her privately, but you are not obligated to intervene in any way

Relevant Law

• Money Lenders Ordinance (Cap. 163) — Licensing Conditions 10 and 13 (prohibition on contacting non-debtors; referee liability)
• Crimes Ordinance (Cap. 200) — criminal harassment and threats
• Summary Offences Ordinance (Cap. 228) — property damage, nuisance
• Personal Data (Privacy) Ordinance (Cap. 486) — misuse of address data

Related Resources

• Companies Registry — Complaints Against Licensed Money Lenders
• Hong Kong Police — Prevention of Illegal Debt Collection
• FSTB — Addressing Concerns about Money Lending
• Labour Department FDH FAQ