(Updated on 14 February 2026)
Loan sharks in Hong Kong refer to individuals or groups that offer loans illegally, typically targeting vulnerable individuals or groups who have limited access to traditional banking services. These illegal moneylenders operate outside the local authorities’ regulations and laws that govern licensed financial institutions, such as banks or licensed moneylenders.
Why Do Foreign Migrant Domestic Workers Easily Fall Prey?
In Hong Kong, foreign migrant domestic workers, due to their relatively low income and limited access to traditional banking services, may be more vulnerable to exploitation by these moneylenders. Some may turn to a loan shark to cover personal or family obligations or deal with unexpected expenses, such as agency fee for the employment opportunities and children’s celebration expenses.
Moreover, language barriers and limited familiarity with local fiscal systems can make it challenging for domestic helpers to navigate the formal corresponding sector, leading them to seek alternative sources of credit, including the loan shark.
What may happen if domestic worker borrows a loan shark?
If your helper borrows from a loan shark in Hong Kong, several negative consequences can arise. Here are some potential outcomes:
- High Interest Fees: A loan shark typically charges exorbitant interest rates, often significantly higher than those offered by licensed banks. Your domestic worker may find themselves trapped in a cycle of debt, struggling to pay back the borrowed amount due to the excessive interest fees.
- Harassment and Threats: The loan shark may employ aggressive and coercive collection tactics. They may resort to harassment, intimidation, and threats against your helper, their family, or their employer. This will create a hostile and stressful environment for your domestic worker, impacting their well-being and work performance.
- Illegal Practices: Loan sharks operate outside the local government’s regulation framework, which means they may engage in unlawful practices. This will include employing violence, using illegal documentation, or employing unscrupulous methods to extract payments from borrowers.
- Exploitative Terms and Conditions: Loan shark agreements often contain unfair terms and conditions. They may impose additional fees, penalties, or hidden charges that further burden your helper’s debt. These exploitative terms will make it even more challenging for your helper to repay the debt.
- Fiscal Instability and Debt Spiral: Getting money from these entities can lead to a spiral of increasing debts and fiscal instability. As your helper struggles to repay the debt and cope with the high interest charges, it will have long-lasting effects on their money management and well-being.
- Legal Consequences: While domestic workers may not face legal consequences for getting money from the loan shark, the loan shark themselves are engaging in illegal activities. If the government becomes aware of the loan shark’s operations, they will face legal consequences, which may indirectly affect your helper if they are implicated in the investigation cases.
It is crucial to prevent your helper from falling prey into these debts by providing financial education, encouraging responsible money management practices, and ensuring they have access to corresponding support systems. If your helper has already borrowed from a loan shark, it is essential to seek assistance from relevant authorities or support organizations to mitigate the negative impact and explore possible solutions.
How To Avoid Your Helper Falling Prey Into Loan Sharks?
To prevent domestic helpers from getting money from loan sharks in Hong Kong, employers can take the following steps:
- Financial Education: Employers can provide their helper with financial education and guidance. Teach them about budgeting, saving, and responsible borrowing. Help them understand the importance of managing their money and avoiding unnecessary debts.
HelperChoice closely works with Enrich Hong Kong (NGO) to provide financial literacy workshops for foreign migrant domestic workers in Hong Kong, aiming to enhance their knowledge in personal wallet management. If employers find a Filipino migrant domestic worker, they may contact HelperChoice customer support team for visa processing service and the workshop will be included for FREE.
More details, please drop us a message on Whatsapp or visit this page.
- Encourage Savings: Encouraging helper to save a portion of their salary regularly may help in their monetary management better. Employers can help domestic helpers set goals and create a savings plan. By having savings, they will be less likely to resort to borrowing in case of emergencies or unexpected expenses.
- Open A Bank Account: Assisting helper in opening a bank account is essential, especial if they don’t have one. A bank account provides a safe and regulated way to manage money. Help them understand the benefits of using banking services and how to handle transactions.
- Access To Licensed Financial Institutions: Employers can inform their domestic worker about licensed financial institutions in Hong Kong, such as banks and licensed loan lenders. Explain the differences between legal and illegal lenders, emphasizing the importance of borrowing from licensed providers who adhere to regulations.
- Communication And Support: Employers may establish an open and supportive relationship with their helper. Encourage them to share any monetary difficulties they may face. By maintaining good communication, the employer can also help them find appropriate solutions or seek assistance before considering these moneylenders.
- Provide Emergency Funds: Consider setting aside emergency funds for domestic worker in case of unforeseen circumstances. This can provide a safety net and reduce the need for them to seek external loans.
- Monitor Monetary Activities: The employer can keep an eye on their helper’s money transactions to identify any signs of potential borrowing from loan sharks. Look for unusual behaviors, sudden changes in spending habits, or signs of financial distress. If employers suspect any issues, address them promptly and offer assistance.
- Report Suspicious Activities: If employers suspect their helper is involved with the loan shark or if they come across any information related to illegal moneylending, report it to the Hong Kong Police Force or the appropriate authorities. They can take action and provide necessary support.
Remember, prevention through education and support is crucial in helping domestic helpers avoid the loan shark. By promoting responsible money management practices and fostering a supportive environment, employers can minimize the chances of their domestic worker resorting to illegal moneylenders.
You might also be interested in:
- Domestic Helper Hiring Guide (Hong Kong)
- Direct Hire On HelperChoice Platform
- Visa Processing For Domestic Workers
See also: Visa Renewal Service For Filipino Maids