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Consumer protection in the banking sector and
sharing of positive consumer credit data


DateContextSummary of developmentAction
3.5.01 FA At the briefing by the Chief Executive of the Hong Kong Monetary Authority (HKMA), members discussed with the Administration on the comparative study ("Comparative Study on Banking Consumer Protection and Competition Arrangements in the UK, Australia and Hong Kong -- Role of the Financial Regulator and Self-regulation of Market Conduct") conducted by HKMA on how consumer protection arrangements in Hong Kong compared with those in the United Kingdom and Australia. [Paper]
15.11.01 PRESS HKMA, jointly with the Hong Kong Association of Banks (HKAB) and the Hong Kong Association of Restricted Licence Banks and Deposit-taking Companies (DTCA), announced the launch of the revised Code of Banking Practice. The revised Code was effective from 1.12.01 onwards. [Press release]
26.2.02 FA The Panel discussed with the Administration on matters relating to consumer protection in the banking sector and met with deputations on the subject. The Administration provided members with the following papers -
  		• Consumer Protection in the Banking Sector [Paper]
  		• Progress on the Deposit Insurance Scheme [Paper]
  		• Exchange Rates of Credit Card Overseas Transactions [Paper]
  		• Recovery of Debts by Banks from Personal Referees [Paper]

    The following organizations presented their views at the meeting -
  		• HKAB
  		• DTCA
  		• Consumer Council (CC) [Paper]

    Submissions from the Sha Tin District Council (STDC) and a member of the Eastern District Council were also received. [STDC's submission]

    The Secretariat also prepared the following papers for members' consideration -
  		• Research report on "Protection for Banking Consumers in the United Kingdom and the United States of America: Fees and Charges" [Report]
  		• Reference materials for deliberation on the protection for consumers in the banking sector [Paper]

    9.4.02 FA The Panel met with the Administration and relevant organizations on the proposal on sharing of positive consumer credit data.
    [Administration's paper]
    [HKAB's paper]
    [CC's paper]
    [HKMA's paper]
    [Administration's follow-up paper]
    [Background brief prepared by the Secretariat]
    13.6.02 FA The Panel discussed with the Administration on the operation of the revised Code of Banking Practice, the latest complaint statistics, and the recent efforts taken by both HKMA and the banking industry to further enhance consumer protection in the banking sector.
    [Administration's Paper]
    [CC's Paper]
    [Administration's follow-up Paper]
    28.8.02 PRESS The Privacy Commissioner's Office (PCO) issued a consultation document on proposed provisions on consumer credit data protection in relation to the sharing of positive credit data. [Press release]
    24.9.02 FA The Panel discussed with the Administration on the consultation document issued by PCO on proposed provisions on consumer credit data protection in relation to the sharing of positive credit data. The following papers were circulated to members -
  		• Administration's paper on "Consultation Document on the
  		• Proposed Provisions on Consumer Credit Data Protection : The Sharing of Positive Credit Data" [Paper]
  		• Consultation paper on proposal for the sharing of positive consumer credit data issued by PCO [Consultation Paper]
  		• Letter dated 24.7.02 from Hon Emily LAU to the Secretary for Financial Services and the Treasury on positive data sharing [Paper]
  		• Reply dated 21.8.02 from the Administration to Hon Emily LAU [Paper]
  		• CC's press release on the consultation paper [Paper]

    23.1.03 PRESS PCO released the report on the public consultation on a set of proposed provisions on consumer credit data protection in relation to the financial industry's proposal on the sharing of positive credit data. [Press release]
    20.3.03 FA The Panel discussed with the Administration on matters relating to consumer protection in the banking sector.
    [Administration's Paper]
    [Supplementary information]
    [CC's Paper]
    9.4.03 CQ Hon Albert CHAN raised a question on the provision of basic banking services to public rental housing residents. [Hansard "Page 18"]
    22.5.03 PRESS PCO announced that amendments to the Code of Practice on Consumer Credit Data were approved. The revised Code was effective from 2.6.03 onwards. [Press release]
    9.7.03 CQ Hon Albert CHAN raised a question on the provision of banking services. [Hansard "Page 88"]
    12/03 FA The Administration's paper in response to the Clerk to Panel's letter of 8.12.03 attaching a complaint about the use of consumer credit data by an authorized institution was circulated to the Panel. [Paper]

    A letter from PCO concerning matters on consumer credit data protection raised by Hon James TO was circulated to the Panel. [PCO's letter]
    3.11.04 CQ Hon LAU Kong-wah raised a question on minimizing cardholders' losses when ATM cards are lost. [Hansard "page 15"]
    4.7.05 FA Arising from the incident of breach of security standards by the CardSystems Inc. in the United States in June 2005, the Panel discussed with representatives of HKMA, MasterCard International (MasterCard) and Visa International (Visa) on the subject of protection of credit cardholders' personal data.
    [HKMA's paper]
    [Submission from MasterCard]
    [Submission from VISA]
    [Submission from The American Express International Inc.]

    HKMA provided information to address members' concerns after the meeting. [Follow-up Paper]

    At members' request, HKAB provided its written views on the subject. [Follow-up Paper]
    9.11.05CQ Hon Albert CHAN raised a question on the closure of branches by note-issuing banks. [Hansard "Page 14"]
    6.2.06FA When the Panel was briefed on the work of HKMA, members expressed concern about the inconvenience to members of the public caused by the reduction in the number of bank branches. Members requested that representatives of HKAB and CC be invited to a meeting of the Panel to discuss the subject.
    17.5.06CQ Hon TAM Yiu-chung raised a question on proposals for post offices to provide new services, including banking services. [Hansard "Page 63"]
    14.6.06CQ Hon Fernando CHEUNG raised a question on closure of branches of banks. [Hansard "Page 61"]
    3.7.06FA The Panel met with representatives of HKAB, CC, Financial Services and the Treasury Bureau and HKMA to discuss the impact of branch closure of banks on the public.
    [Paper provided by HKAB] (English version only)
    [Paper provided by CC]
    [Paper provided by the Administration]
    [Background Brief]
    [Speaking note] (Chinese version only)

    HKAB has been invited to provide the Panel in writing on:
    (a)progress made in respect of members' comments at the meeting and the recommendations of its Task Force for provision of basic banking services to the public; and

    (b)information about bank charges levied on inactive and low balance accounts.
    [Interim reply dated 25 October 2006 from HKAB] (English version only)
    [Follow-up paper]
    [Letter from Hong Kong Association of Banks]


    13.12.06CQ Hon Albert CHAN raised a question on fees and charges for banking services. [Hansard "Page 76"]
    2.4.07 FA The Panel met with representatives of HKAB, CC, Financial Services and the Treasury Bureau and HKMA to discuss the impact of banks' branch closure and fee-charging on the public.
    [Paper]
    [Background brief]

    Publicity materials on the campaign to promote the use of Automatic Teller Machines (ATM) by senior citizens (printed leaflet, educational CD, ATM location maps and poster) provided by the HKAB
    [Paper]
    [Powerpoint presentation material provided by HKAB]
    [Paper provided by CC]
    ["Report on Impact of Branch Closures and Fee Increases of Banks on Disadvantaged Consumers" (the report) provided by CC]
    [Executive summary of the report provided by CC]
    [Annex 3 of the report provided by CC]
    [Follow-up paper provided by the Hong Kong Association of Banks]
    [Follow-up paper provided by the Administration]
    2.5.07CQ Hon Albert CHAN raised a question on collection of services fees on low-balance accounts by banks [Hansard "Page 75"]
    5.5.08 FA The Panel met with representatives of HKAB, CC, Financial Services and the Treasury Bureau and HKMA for an update of the latest development of the impact of banks' branch closure and fee-charging on the public.
    [Paper]
    [Submission from the Hong Kong Association of Banks] (English version only)
    [Submission from the Consumer Council]
    [Background brief]
    [Follow-up paper]
    [Follow-up paper from the Hong Kong Association of Banks] (English version only)
    1.6.09 FA The Panel met with representatives of HKAB, CC, Financial Services and the Treasury Bureau and HKMA for an update of the latest development of the provision of basic banking services and the impact of banks' fee-charging on the public.
    [Paper]
    [Submission on impact of banks' branch closure and fee-charging on the public from the Consumer Council (Chinese version only)]
    [Background brief]
    [Hon KAM Nai-wai's letter dated 17 December 2008 expressing concern on the business practices of authorized institutions in relation to credit cards (Chinese version only)]
    [Administration/the Hong Kong Monetary Authority's response to Hon KAM Nai-wai's concern]
    [Administration/ the Hong Kong Monetary Authority's information paper on the fees and charges for banking services]
    [Hong Kong Monetary Authority's written response on impact of banks' branch closure and fee-charging on the public]
    12.5.10 CQ Hon LAU Kong-wah raised a question on automatic teller machine fraud cases. [Hansard "Page 79"]
    26.5.10 CQ Hon Tommy CHEUNG Yu-yan raised a question on security problem of automatic teller machines.[Hansard "Page 23"]
    2.6.10 CQ Hon James TO Kun-sun raised a question on pre-payment for services. [Hansard "Page 33"]
    7.7.10 CQ Hon Starry LEE Wai-king raised a question on protection of consumers' rights and interests. [Hansard "Page 74"]


  		• HKMA - Code of Banking Practice:
    http://www.info.gov.hk/hkma/gdbook/eng/c/code_b_practice.htm
  		• HKMA - Sharing Positive Consumer Credit Data
    http://www.info.gov.hk/hkma/eng/pos/pos_b.htm

    Related topics in the Database:
  		• Deposit protection in Hong Kong
  		• Establishment of a commercial credit reference agency in Hong Kong


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