Domestic helper debt has long been a headache for Hong Kong employers — debt collectors calling your phone, showing up at your door, or discovering you've been listed as a loan "referee" without ever being asked. The government is finally introducing major amendments to the Money Lenders Ordinance in 2026, rolling out in two phases with direct implications for every household employing a helper and every employment agency in Hong Kong. This guide covers what you need to know and do.

Why is the government tightening money lender regulations?

How serious is the helper over-borrowing problem?

According to government consultation data, foreign domestic helpers account for approximately 26% of all unsecured loan cases in Hong Kong, with a bad debt rate of 9.9% — the highest among all borrower categories. With the current Minimum Allowable Wage at HK$5,100, helpers have relatively limited income yet frequently carry multiple loans simultaneously. Some money lenders have exploited helpers' limited understanding of loan terms, using employment contract durations as de facto collateral and trapping helpers in severe debt cycles.

How do employers get dragged in?

Under the current system, some money lenders require helpers to provide "referees" when borrowing — and that referee is often the employer. The problem: many employers have no idea they've been listed as a referee until they start receiving debt collection calls or visits. While referees have no legal obligation to repay, money lenders can legitimately contact referees to "enquire about the borrower's situation" — which in practice becomes a tool for harassing employers. This issue has generated a high volume of complaints and is a primary driver behind these amendments.

Three major changes from 1 August 2026 (Phase 1)

1. Complete ban on requiring helpers to provide loan referees

The revised Money Lender Licence Condition 13 now explicitly states: when processing loan applications from low-income borrowers (including helpers), money lenders must not require borrowers to provide any person as a referee. This means employers will no longer risk being unknowingly listed in loan documents. The consequences for non-compliance are severe — the Companies Registry can suspend or revoke the money lender's licence, effectively shutting down their business.

What this means for you: you will no longer be harassed by debt collectors over your helper's personal loans. If a money lender still contacts you as a referee after the new rules take effect, you have the right to file a complaint with the Companies Registry (Hotline: 2867 2600).

2. Repayment caps for low-income borrowers now in law

The new rules introduce a Repayment-to-Income Ratio cap applicable to all borrowers earning HK$12,000 or less per month — which covers the vast majority of helpers:

Borrower's monthly income Max repayment (% of income) Based on helper MAW of $5,100
HK$6,000 or below 35% Max monthly repayment ~$1,785
HK$6,001 – $12,000 40% (Not applicable to most helpers)

Additionally, the loan repayment period cannot exceed the remaining term of the borrower's employment contract. For example, if a helper's contract has 12 months remaining, a money lender cannot approve a loan with an 18-month repayment period. This effectively prevents helpers from carrying unpaid debts after their contract ends — and protects employers from being contacted by debt collectors after their helper has left Hong Kong.

Example: Helper Maria (not her real name) earns $5,100/month. Under the old system, she held three simultaneous loans with total monthly repayments of $3,200 (64% of income). Under the new rules, her total monthly repayments will be capped at $1,785, significantly reducing the risk of default.

3. Mandatory risk warnings on lending advertisements

All money lender advertisements must now include government-mandated risk warnings. Advertisements must not use language that exaggerates how easy it is to borrow — terms like "instant approval" and "zero barriers" will be subject to stricter scrutiny. This measure aims to reduce the influence of misleading advertising on helpers' borrowing decisions.

New requirements from 1 June 2027 (Phase 2)

The Credit Reference Platform — mandatory reporting

Phase 2 centres on the Credit Reference Platform for Money Lenders — a government-mandated credit database. From 1 June 2027:

  • All licensed money lenders must submit borrower loan and repayment data to the platform every 30 days.
  • Before approving new loans, money lenders must check the platform to verify the borrower's existing debts across all money lenders.
  • This addresses the long-standing problem of helpers borrowing from multiple money lenders simultaneously, with no information sharing between lenders.

For employers, the Credit Reference Platform means helper over-borrowing should decrease substantially, reducing the chances of being dragged into your helper's debt problems.

This is good news. Taken together, these three changes mean the risk of employers being harassed over helper debts is significantly lower:

  • Referee system abolished → you can no longer be unknowingly listed in loan documents, cutting off debt collection calls at the source.
  • Repayment-to-income cap → helpers are far less likely to over-borrow, reducing defaults and the knock-on effects on employers.
  • Mandatory credit reporting → lenders can now see a borrower's full debt picture, effectively stopping multi-lender debt spirals.

In the past, employers were frequently dragged into their helper's debt disputes. The new regulations create three layers of protection, giving employers much greater peace of mind when hiring a domestic helper.

Compliance responsibilities for employment agencies

Code of Practice strictly prohibits agency involvement in lending

The Labour Department's Code of Practice for Employment Agencies draws very clear red lines on lending:

  • Must not provide any loan information or finance company contact details to helpers
  • Must not arrange, encourage, or coerce helpers to borrow from any financial institution
  • Must not receive any referral fees or commissions from financial institutions

Violating any of these can result in the Labour Department revoking or refusing to renew the agency's licence — effectively requiring the agency to cease operations.

Licence application disclosure requirements

When applying for or renewing a licence, agencies must disclose to the Labour Department:

  • Whether the agency shares premises with any financial institution
  • Whether the licence holder or any responsible person is also a principal or employee of a financial institution

Failure to disclose can be treated as providing false information, which can also lead to licence revocation.

How can agencies protect themselves and their employer clients?

  • Display clear notices in the office stating the agency does not provide any lending services or referrals
  • Include a "no lending involvement" clause in service agreements with helpers
  • Train all staff to understand lending red lines
  • If a helper proactively requests lending assistance, refuse clearly and document the request
  • Regularly check that your premises do not share space or personnel with any financial institution

Employer practical guide: dealing with helper debt under the new rules

My helper is being chased by debt collectors — what can I do?

First and foremost: your helper's personal debts are not your responsibility. You have no legal obligation to repay on their behalf. If you receive calls or visits from debt collectors:

  • Tell the money lender clearly that you are not a guarantor or referee and ask them to stop contacting you
  • Record the money lender's name, licence number, and contact person
  • Report to the Companies Registry Money Lenders Complaint Hotline (2867 2600)
  • If you receive threats or feel your safety is at risk, call the police immediately

For more details, see our guide: Helper Debt Problems: 3 Legal Protections for Employers.

My helper asked to borrow money from me — what should I do?

We recommend politely declining direct money lending to your helper. Once an employment relationship involves personal loans, disputes can easily arise and the relationship can deteriorate. Instead, you can:

  • Understand your helper's actual needs (is it a family emergency?)
  • If appropriate, consider a salary advance with written documentation
  • Direct your helper to non-profit organisations offering free financial counselling

My helper took out a large loan just before their contract ends — what's the risk?

This is a common employer concern. Under the new rules, loan repayment periods cannot exceed the remaining employment contract term, which should theoretically reduce this risk. However, employers should note: if a helper borrows and then leaves Hong Kong, debt collectors may still attempt to use the employer's address for collection. We recommend confirming that money lenders have updated contact addresses before your helper departs.

I suspect my helper used my address to borrow money without permission — what do I do?

If you receive financial correspondence addressed to your helper or debt collectors visit your home:

  • Discuss the situation with your helper immediately
  • Ask your helper to notify the money lender to correct the address
  • Send a written notice (registered mail) to the money lender confirming you are not the borrower or guarantor
  • If the problem persists, file a complaint with the Companies Registry

Frequently asked questions

Can money lenders call me (the employer) to ask about my helper's whereabouts?
From 1 August 2026, money lenders are banned from requiring helpers to provide employers as loan referees. If you never signed any guarantee documents, money lenders have no right to contact you for debt collection or to enquire about your helper. Report any harassment to the Companies Registry Money Lenders Complaint Hotline at 2867 2600.
Are loans signed before August 2026 covered by the new rules?
The new licence conditions apply to all licensed money lenders' operations regardless of when the loan was signed. Even for loans made before August 2026, money lenders must comply with the revised conditions, including not contacting referees. However, the contractual terms of existing loan agreements will not be retroactively modified.
What is the maximum a helper can borrow per month?
Under the new Repayment-to-Income Ratio cap: borrowers earning HK$6,000 or less per month cannot have repayments exceeding 35% of income; those earning HK$6,001 to $12,000 are capped at 40%. For a helper on the Minimum Allowable Wage of HK$5,100, the maximum monthly repayment is approximately HK$1,785.
As an employment agency, can I recommend a finance company to a helper?
Absolutely not. The Labour Department's Code of Practice for Employment Agencies strictly prohibits agencies from providing any loan information, arranging loans, or encouraging or coercing helpers to borrow money. Violations can result in licence revocation or refusal to renew.
What is the Credit Reference Platform and how does it affect money lenders?
The Credit Reference Platform for Money Lenders is a government-mandated credit database, expected to take effect from 1 June 2027. All licensed money lenders must submit borrower loan and repayment data every 30 days. Once implemented, money lenders can check a borrower's total outstanding debts across all money lenders before approving new loans, effectively preventing helpers from over-borrowing from multiple sources.
Where can I check if a money lender is licensed or report violations?
You can check a money lender's licence status through the Companies Registry's Money Lenders Register online at www.cr.gov.hk. To report suspected violations, call the Companies Registry Money Lenders Complaint Hotline at 2867 2600, or report to the police.

Summary and action checklist

Employer action checklist

  • Understand the new rules: from 1 August 2026, you can no longer be listed as a loan referee for your helper
  • If you still receive debt collection harassment, document the details and report to the Companies Registry (Hotline: 2867 2600)
  • Communicate openly with your helper about debt issues to prevent problems from escalating

Agency action checklist

  • Immediately check whether your premises share space or personnel with any financial institution — rectify if so
  • Train all staff: providing any lending information or referrals is strictly prohibited
  • Update service agreements and office notices to explicitly state no involvement in lending

Key dates

Date What takes effect
1 August 2026 Phase 1: Referee ban, repayment-to-income caps, mandatory ad warnings
1 June 2027 Phase 2: Credit Reference Platform mandatory for all money lenders