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Be careful when doing business with Hong Kong (Mod: Problems enforceing claims in HK)
Thread poster: xxxXX789
xxxXX789  Identity Verified
Netherlands
Local time: 09:07
English to Dutch
+ ...
Jun 16, 2004

Something in the law has changed, which has basically rendered all companies in Hong Kong untouchable. Many Hong Kong companies know this and use it to their advantage.

This means that there is no way you will ever get your money from defaulters located in Hong Kong. The Hong Kong Small Claims Tribunal demands that to sue these companies, you need to be located in Hong Kong yourself. Representatives (like bailiffs) are no longer allowed.

Be careful out there. It's a dangerous world sometimes.

[Subject edited by staff or moderator 2004-06-16 13:20]


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Narasimhan Raghavan  Identity Verified
Local time: 12:37
English to Tamil
+ ...
It is time Hong Kong is paid back in its own coin Jun 16, 2004

It is really dismaying to read about Hong Kong and that too in these days of the world becoming a small global village. Surely the same law should apply to Hong Kong businessmen having litigation with foreign buyers of their goods. They should be resident in the country of their dispute!

Just my thoughts. If it is not so, then should it not be be made so? I think WTO should think on these lines. In that way no defaulting businessmen, who are citizens of a protectionist country like Hong Kong will be able to take up international trade. Surely the Hong Kong regulations are against the principles of WTO, of which Hong Kong is a member?

Regards,
N.Raghavan


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Harry Bornemann  Identity Verified
Mexico
English to German
+ ...
Are there any collection agencies in Hong Kong? Jun 16, 2004

It looks like a gap in the market for them

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xxxXX789  Identity Verified
Netherlands
Local time: 09:07
English to Dutch
+ ...
TOPIC STARTER
Yes, there are collection agencies, but they can't do a thing Jun 16, 2004

They can basically chase your client perpetually, but all they can do is send angry letters.

Once they need to take the case to the Small Claims Court because the client does not respond, the Small Claims Court will simply demand that the plaintiff is located in Hong Kong. The plaintiff may not be represented by the collection agency.


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Harry Bornemann  Identity Verified
Mexico
English to German
+ ...
If collection agencies cannot buy claims, Jun 16, 2004

because they would still refer to foreign plaintiffs,
at least the BlueBoard business will prosper
and banks like Moneybookers to avoid accumulation
of large sums. 8)


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Scott Li  Identity Verified
Hong Kong
Local time: 15:07
Member (2005)
Chinese to English
+ ...
Why such a header ? Jun 16, 2004

there is no such a law change as you have mentioned. No person can normally be represented by a lawyer in order to minimize the cost due to the amount allowed to claim is limited. This rule has been established in the beginning.

Please read the link provide for the purpose of the Small Claim Tribunal in HK.

http://www.judiciary.gov.hk/en/crt_services/pphlt/html/sc.htm


Perhap you can descripe your experience more precisely and let other people beware of certain sectors instead of addressing such a header.


Regards

Scott Li

Hong Kong


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Ralf Lemster  Identity Verified
Germany
Local time: 09:07
English to German
+ ...
Edited the header Jun 16, 2004

Thanks for pointing this out, Scott - I added an explanatory note to the header.

Ralf


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xxxXX789  Identity Verified
Netherlands
Local time: 09:07
English to Dutch
+ ...
TOPIC STARTER
What the SCT writes and actually does are different things Jun 16, 2004

I'm speaking from first-hand experience. The SCT claims they handle all cases, but in fact they refuse foreign companies. I have this black on white. So no matter what their website says, I have a refusal explicitly stating that foreign companies are not allowed to file claims at the SCT.

So I'm sorry Scott, but your info is incorrect. I quote (excuse the SCT's English):

Due the recent change in
policy & the basic requirements are changed.

"If the applicant is outside HK, if they applied for small claim tribunal
(not accepted).

If the applicant apply as individual (represented the claimer), he or she
need to be the employee of the claimer.

If the applicant apply as coporate , the applicant need to be affiliate
or subsidiary of the claimer."

(Note that the claimer should be a resident of HK).

Now the SCT might be legally right or wrong about this, but this is what they state, so I therefore have no choice but to take it as the truth.

[Edited at 2004-06-16 13:54]


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Charlotte Blank  Identity Verified
Local time: 09:07
Czech to German
+ ...
Only in HK? Jun 27, 2004

Loek van Kooten wrote:
Something in the law has changed, which has basically rendered all companies in Hong Kong untouchable. Many Hong Kong companies know this and use it to their advantage.


I just have some problems with an agency located in mainland China so I'm interested to hear whether these changes are affecting only Hong Kong or other places as well. Does anybody of you happen to know more about this?

Thanks in advance!

Charlotte


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