3rd July, 2008, HONG KONG
Efforts have ascalated on combating the illegal activities carried on by unscrupulous recovery agents.
Critics have on numerous occasions expressed serious concern on the activities of recovery agents in Hong Kong. These recovery agents operate under the "no win, no fee" purported pledge. Many are in the disguise of non-profit making bodies.
They appeal to injuried workers and traffic accident victims because they demand no legal fees from them. In some cases, the agent or a related party even provides high interest rate loans o victims to meet their daily expenses before a case is settled. By the time of settlement, the interests incurred will have taken away a substantial part of the compensation.
At the same time, the agent charges a substantial portion of damages recovered as high as 30%. Concern was expressed that recovery agents is easily driven to early settlement for lesser work to be done and because of such ill motive, resulting in a lower amount of compensation ignorant to the victims.
According to this issue of Legal Aid Council newsletter, the Government has produced a radio API which is ready to be launched. The TV API will be completed very soon. Besides and most importantly, police are investigating 9 cases on recovery agents and 3 arrests have been made.