Unpaid loan

[hadassa]

Hi…i just want to ask advice please…i made a loan last May 2021,150k hkd, i have no problem paying it monthly…but i because I couldn’t go to work last November i am not receiving any income and now i cannot pay the financial institution where i borrowed the money…my loan is in collector agency already…i am going to pay it but i have to wait for my helper to recover so that i can go back to work,probably on March…i tried to reason put to the collector but they won’t listen..will they really come and visit me in my residence even if i always answer their call?

[er2]

If you actually took a loan from a bank / regulated financial institution then there are rules of engagement around this. I do not know if they are allowed to visit your residence, but you would not have to allow them entry. If you took a loan from a loan shark then yes, there might be trouble. On the upside, you're not legally on the hook for the money, on the downside they will come and harass you, and in this case you might need to look for advise from people who know about this stuff - I don't
Generally, you might have made a mistake by not engaging enough with the bank - non-payment in November usually wouldn't send a loan to collections in January if communication is happening. Since it is with collections, my advise would be to either \
- stoically tell them no, can't pay now, will be able to pay in March, and then in March say that you will pay if they give you an acceptable payment plan (i.e. one without outrageous interest)
- find alternative sources of credit (family), and then tell the collectors that if you are to pay now, it has to be 50c on the dollar because you'd have to get family to extend a loan to you. They won't accept 50% yet but they might accept 75%. Push.

[hadassa]

They passed it already actually to collection agency and the agency is now asking me to pay certain amount which I don’t have right now..I am trying to tell them that i can probably pay by April if i start to work on March…but they said no,i have to pay before chinese new year..i am not going to run away and I’m not planning not pay,but they are not so friendly and not so considerate…

my other concern is that,i am still currently employed to the company that sponsored me here in hongkong,they are nice people, when i told them i have to stay with my children as my helper is in the hospital they agreed and told me i can go back to work whenever my helper is back,…my helper have to have a full recovery and she will be back last week of February….my concern is that if i cannot pay my loan till April they will sue me…i will be applying my residency on June,will the immigration grant me the residency if the bank will sue me?…
QUOTE=er2;3846630]If you actually took a loan from a bank / regulated financial institution then there are rules of engagement around this. I do not know if they are allowed to visit your residence, but you would not have to allow them entry. If you took a loan from a loan shark then yes, there might be trouble. On the upside, you're not legally on the hook for the money, on the downside they will come and harass you, and in this case you might need to look for advise from people who know about this stuff - I don't
Generally, you might have made a mistake by not engaging enough with the bank - non-payment in November usually wouldn't send a loan to collections in January if communication is happening. Since it is with collections, my advise would be to either \
- stoically tell them no, can't pay now, will be able to pay in March, and then in March say that you will pay if they give you an acceptable payment plan (i.e. one without outrageous interest)
- find alternative sources of credit (family), and then tell the collectors that if you are to pay now, it has to be 50c on the dollar because you'd have to get family to extend a loan to you. They won't accept 50% yet but they might accept 75%. Push.[/QUOTE]

[chuckster007]

1. The collection agency wont sue you
2. unpaid loan will not effect your PR application
3. You've tried to reasonable with the collection agency but the people you talked with are robots who's only job is to pressure you into making payment. just ignore them until you can start paying back
4. They wont come to your house, they will just keep bugging you with phone calls. you can block them if you want, dont keep talking to them as you will get same answer as no3.

[hadassa]

Thank you so much for your replies…it somehow relieve me some stress, i was very worried it will affect my PR application…

[chuckster007]

my other concern is that,i am still currently employed to the company that sponsored me here in hongkong,they are nice people, when i told them i have to stay with my children as my helper is in the hospital they agreed and told me i can go back to work whenever my helper is back,…my helper have to have a full recovery and she will be back last week of February

Well done for looking after your helper and waiting for her to make a full recovery, she is lucky to be working for you, most other cases the helper would have been terminated and kicked out

[hadassa]

I think it’s not right to terminate someone just because they are sick…it is not her choice to get sick…employers should be more considerate to their helpers,without them we cannot work as well…and besides that my helper is so patient with my 3 children, and my children lover her😊😊

[Matt30]

There are strict laws about debt collection. They cannot physically harm you, if they do or threaten you with physical harm then call the police. Worst they can do is call you ask for payment and maybe they will go to your home. They are all open to negotiation for payment plans even if they are very aggressive at first.

[*Andrew*]

Another option would be to speak to someone like Dah Sing Bank, or other, asking for a debt relief plan. They pay off your current loan, and you agree a time period for the rescheduled payments.

[ndt]

Have you considered hiring part-time helper to take care of your kids while you keep working and generate income to get out of this mess as soon as possible!!! Taking care of helper is good thing but does it stop you from working and what if she is unable to fully take care of your kids and house during initial recovery period!!