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| Last updated at: (Beijing Time) Thursday, November 15, 2001 |
HK Code of Banking Practice Revised for More Transparency |
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The Hong Kong Monetary Authority (HKMA) announced Thursday the launch of its revised Code of Banking Practice to make terms and conditions of banking services more transparent and consumer-friendly.
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The Hong Kong Monetary Authority (HKMA) announced Thursday the launch of its revised Code of Banking Practice to make terms and conditions of banking services more transparent and consumer-friendly.
Major revisions to the original code issued in 1997 cover areas such as card services, notification of changes to fees and charges, debt collection, e-banking services and stored value card.
With regard to card services, the revised code offers customers greater protection, more transparency and fairness. It stipulated that the maximum liability for card loss should not exceed 500 HK dollars (64 U.S. dollars) except for fraud and negligence.
As for debt collection, under the revised code, any collection expenses to be recovered from customers should be of reasonable amount and should have been reasonably incurred.
Institutions are requested to have proper systems and procedures for selecting debt collection agencies and monitoring their performance. They are also asked to regularly evaluate whether charges of debt collection agencies are reasonable.
"The revisions to the code should help to further enhance high standards of conduct and sound and prudent business practices among authorized institutions," said Simon Topping, executive director of the HKMA.
Cliff Forster, chairman of the DTC Association (DTCA), said he believed the Code will provide additional guidance to institutions in providing quality banking services to customers and help enhance the overall level of services within the industry.
A new Code of Banking Practice Committee comprising representatives of the Hong Kong Association of Banks (HKAB), the DTCA and the HKMA has been established to continuously review and develop the code in response to market changes and the changing needs of consumers.
The revised code is effective from December 1, 2001. Authorized institutions are expected to comply with the new provisions as quickly as possible and by June 1, 2002 at the latest.
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