H
HOWARDL
06 April 2010
Domestic Helper
Helpers unpaid loan - what will happen
Hi all, very complicated situation and wondered if anyone can assist.
My helper has a large outstanding loan with an 'official' loan shark company (long story, but she took it out for a friend, friend disappeared and did not pay, company came after my helper last year who had no idea the friend had not repaid)
When she found out about the loan, she tried to pay it but was under increasing pressure from them to pay more and more. she managed 5,000 over 2 months by not sending money home.
she eventualy told me and I went to the company with her and offered to repay the principle (12k).
They said no. I then asked to see the full contract she signed (she has a single page of pretty rudimentary terms in bad English) all the documentation relating to the loan, translations of the contract in chinese if under local law, the information that was supplied to her on the application of penalties and interest etc. I was pretty angry (pregnant and hormonal!) but didnt overstep any lines.
The company rep was very agressive with me in English and ultimately simply refused to speak to me (they did keep speaking to her in Philippino). Also refused to give us any documentation.
I sent them (faxed, emailed, posted) written confirmation from her that I was able to act on her behalf, request information and discuss payment terms. They refuse to recognise this and say they will only speak to her.
At all times I have made it clear we (her and I) want to discuss a reasonble method of repayment (they suggested to her if she could pay $30k in less than a month, they would cancel the loan - of course impossible unless she took out another loan!)
They did not answer, would not return my calls, emails, faxes or posted letters. Thein HK y were harrassing her family who live here so I sent a strongly worded fax/email and letter saying I would involve the police if it continued (it stopped).
Periodically I send emails asking if we can discuss payment terms - never get anything back.
About 3 months ago they turned up in the reception of my building. My helper and I went down and I asked why they had not responded to my communications. They ignored me and asked my helper how she was going to pay. I asked them to contact me to arrange an appoint to see us both, but not to come back to my buildling again without an invitation. They were aggressive, but stopped short of inappropriate beviour, and left.
Nothing heard since, I'm now unsure what to do. We remain open to paying the principle for her, or to help her repay a resonable amount per month, taking into account her wage.
I'm guessing a court might declare her bankrupt, if so they would get nothing right? I wonder if it would effect her immigration status. She has been in HK for 12 years or so, a solid work record and has no black marks in any other way.
Not sure why they are not open to getting some money back. My husband thinks the loan rep (a local guy) was not very happy that I challenged him in our initial meeting and is now taking this quite personally.
Should I just keep sending letters so it's all documented if we go to court? I have a massive file already with all fax receipts, emails and registered mail receipts. Tried to contact the HK Money Lenders Ordinance people but got no response.
I would like to sort this out as it is hanging over her head. She has worked for us for 4 years and is a good person in an unfortunate position because she made one silly mistake and lent to the wrong person.
She would like to pay it off and move on, but if it didn't effect her immigration status, I'd almost rather spend the money on a lawyer and go to court. The contract she signed looks like a complete joke (to a layman), this company prey on people and really wind me up.
Long winded post - advice greatly appreciated!
My helper has a large outstanding loan with an 'official' loan shark company (long story, but she took it out for a friend, friend disappeared and did not pay, company came after my helper last year who had no idea the friend had not repaid)
When she found out about the loan, she tried to pay it but was under increasing pressure from them to pay more and more. she managed 5,000 over 2 months by not sending money home.
she eventualy told me and I went to the company with her and offered to repay the principle (12k).
They said no. I then asked to see the full contract she signed (she has a single page of pretty rudimentary terms in bad English) all the documentation relating to the loan, translations of the contract in chinese if under local law, the information that was supplied to her on the application of penalties and interest etc. I was pretty angry (pregnant and hormonal!) but didnt overstep any lines.
The company rep was very agressive with me in English and ultimately simply refused to speak to me (they did keep speaking to her in Philippino). Also refused to give us any documentation.
I sent them (faxed, emailed, posted) written confirmation from her that I was able to act on her behalf, request information and discuss payment terms. They refuse to recognise this and say they will only speak to her.
At all times I have made it clear we (her and I) want to discuss a reasonble method of repayment (they suggested to her if she could pay $30k in less than a month, they would cancel the loan - of course impossible unless she took out another loan!)
They did not answer, would not return my calls, emails, faxes or posted letters. Thein HK y were harrassing her family who live here so I sent a strongly worded fax/email and letter saying I would involve the police if it continued (it stopped).
Periodically I send emails asking if we can discuss payment terms - never get anything back.
About 3 months ago they turned up in the reception of my building. My helper and I went down and I asked why they had not responded to my communications. They ignored me and asked my helper how she was going to pay. I asked them to contact me to arrange an appoint to see us both, but not to come back to my buildling again without an invitation. They were aggressive, but stopped short of inappropriate beviour, and left.
Nothing heard since, I'm now unsure what to do. We remain open to paying the principle for her, or to help her repay a resonable amount per month, taking into account her wage.
I'm guessing a court might declare her bankrupt, if so they would get nothing right? I wonder if it would effect her immigration status. She has been in HK for 12 years or so, a solid work record and has no black marks in any other way.
Not sure why they are not open to getting some money back. My husband thinks the loan rep (a local guy) was not very happy that I challenged him in our initial meeting and is now taking this quite personally.
Should I just keep sending letters so it's all documented if we go to court? I have a massive file already with all fax receipts, emails and registered mail receipts. Tried to contact the HK Money Lenders Ordinance people but got no response.
I would like to sort this out as it is hanging over her head. She has worked for us for 4 years and is a good person in an unfortunate position because she made one silly mistake and lent to the wrong person.
She would like to pay it off and move on, but if it didn't effect her immigration status, I'd almost rather spend the money on a lawyer and go to court. The contract she signed looks like a complete joke (to a layman), this company prey on people and really wind me up.
Long winded post - advice greatly appreciated!