Having drawn from the expertise of the Atradius Collections' local offices, the International Debt Collections Handbook explains the different stages, regulations and procedures for Hong Kong.
Atradius Collections Hong Kong 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 with which 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 LDC to trace the status of the debtor and make a site visit to debtors 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 the 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.
In Hong Kong, debt collection costs are not chargeable to debtors unless stipulated in the contract or obtained by the judgment from the court.
The Debt Collections Handbook presents a snapshot of Hong Kong's local economic situation and covers the following topics:
- Accepted and most common payment methods
- Retention of title
- Legal procedures & legal system
- Enforcement in debt
- Insolvency proceedings
To read more about steps and procedures undertaken in the field of debt collection: