Debt collection agents recover debts from referee

1.    The Privacy Commissioner for Personal Data, Mr. Roderick B. Woo is concerned that some financial institutions disturbed referees for debt recovery.  Media reported that after some individuals had become their friends’ referees in loan borrowing due to the misuse of their personal data by their friends, they suffered continual disturbances from debt collection agents.

2.    Under Data Protection Principle 3 of the Personal Data (Privacy) Ordinance, unless with the prescribed consent of the data subject, personal data shall only be used for the original purpose of use at the time of collection or its directly related purpose.  Unless a referee has entered into a formal agreement with a financial institution agreeing that he will be the guarantor of the debt of the borrower, the referee bears no legal or moral liability for the repayment of the debt.  Therefore, if a debt collection agent uses the personal data of referees to recover debts, it will contravene the above principle.

3.    In addition, Mr. Woo reminds the public, “When you decide to act as a referee for someone, you should acquaint yourself with the Personal Information Collection Statement of the financial institution so as to know the purpose of the institution in the use of referees’ personal data.  On the other hand, before passing the personal data of your referee to the financial institution, you should obtain your referee’s consent.  Such act not only reduces future disputes, but also shows your respect to your referee.”