Introduction
This is a report on the financial status of the Fund and the progress of assisted cases for the period from 1 April 2019 to 30 September 2019.
Finance
During the reporting period, the total income and expenditure of the Fund were HK$371,000 and HK$263,000 respectively. As at 30 September 2019, the total accumulated fund stood at about HK$16 million.
Report on cases
Overview
During the reporting period, the Fund received 5 new applications. In addition, 6 applications were received prior to the reporting period and were under process during the reporting period. Amongst these 11 applications, 5 were declined, 2 remains under consideration and 1 was resolved during application. The Fund has granted assistance to 3 applications.
Progress of cases
Cases Carried Over From Previous Year
- Beauty Products and Services – Recovery of Prepayment
The assisted consumer made multiple bulk prepayment purchases of beauty products and treatments from an international beauty brand over the years. While a substantial portion of the purchases had yet to be collected or consumed, she was informed that the beauty brand would cease operation in less than 3 months and was requested to collect and consume all the purchased products and treatments before operation ceased.
During the reporting period, the assisted consumer received a negotiated settlement sum and the matter was settled.
- Columbarium (Case 1) – Refusal to Allow Interment of Ashes
The assisted consumer purchased a niche from a private columbarium in 2001 intending to inter the ashes of his mother when the time came. When his mother passed away in 2017, the columbarium refused to allow interment of her ashes on the grounds that the deceased’s name stated on the receipt was different from that on her death certificate and ID card. The incorrect name on the receipt was written by the columbarium’s staff in 2001 without verification of the deceased’s identity documents.
During the reporting period, the Fund instructed solicitors to act for the assisted consumer and to safeguard his interests. Upon receiving an affirmation explaining the discrepancy between the names, the columbarium accepted that both names referred to the same person and agreed to allow permanent interment once the licence under the Private Columbaria Ordinance is obtained.
- Columbarium (Case 2) – Refusal to Allow Interment of Ashes
The assisted consumer’s mother purchased a niche from a private columbarium in 1996. In 2017, the assisted consumer wanted to inter her mother’s ashes into the niche after she passed away. However, the columbarium refused the request on the grounds that the deceased’s name stated on the receipt was different from the name on her death certificate and identity card.
During the reporting period, the Fund instructed solicitors to act for the assisted consumer and to safeguard her interests. An affirmation explaining the discrepancy between the names was prepared and provided to the columbarium.
- Time-sharing Scheme – Aggressive Commercial Practices
The assisted consumer was allegedly pressurised to enter into a vacation club membership agreement by aggressive sales tactics adopted by the trader including prolonged and persistent sales pitching and denial of a toilet break.
During the reporting period, the Fund instructed solicitors to act for the assisted consumer. Legal action commenced against the trader is under progress.
- Fitness Services – Aggressive Commercial Practices
The assisted consumer, being a person suffering from autism, entered into two membership agreements and one personal trainer’s agreement as a result of the alleged unfair trade practices and unconscionable conduct of the fitness centre.
During the reporting period, the Fund instructed solicitors to act for the assisted consumer to pursue legal action against the trader. The solicitors advised that an updated medical report on the assisted consumer’s mental conditions should be obtained before issuing a letter before action against the trader. To save costs, the Fund recommended that the assisted consumer should have his medical conditions re-assessed at the public hospital he attended as a child instead of going to a private psychiatrist. To expediate the assessment, the Council contacted the hospital on his behalf after obtaining authorisation from the assisted consumer.
Newly Assisted Case
- Fitness Services – Aggressive Commercial Practices
The assisted consumer, being a person suffering from autism, entered into a membership agreement as a result of the alleged unfair trade practices and unconscionable conduct of the fitness centre.
The Fund considered that the issue of this case involved significant consumer interest. Assistance was granted for legal action to be taken against the fitness centre. During the reporting period, a claim against the fitness centre was instituted at the Small Claims Tribunal (“SCT”). The SCT granted an award ordering the fitness centre to make a full refund of the sum paid by the assisted consumer with costs.
- Private Columbarium – Refusal to Allow Interment of Ashes
The applicant’s father (“the Deceased”) purchased a niche in the columbarium in 1994 for interment of his own ashes. After the Deceased passed away in February 2018, the applicant took the receipt to the columbarium for interment. However, the columbarium refused the request on the ground that it had not yet obtained a licence under the Private Columbaria Ordinance. The columbarium only allowed the applicant to place a tablet in the niche but interment of ashes was refused.
The Management Committee of the Fund (“MC”) was of the view that the columbarium’s trade practice was unsatisfactory and that the case involved significant consumer interest. Therefore, the MC recommended that assistance be granted to the applicant. By the end of the reporting period, the Fund was seeking endorsement from the Board of Administrators of the Fund on the recommendations of the MC to grant assistance to the applicant.
- Fitness Services – Aggressive Commercial Practices
The assisted consumer entered into a membership agreement as a result of the alleged unfair trade practices and unconscionable conduct of the fitness centre.
The Management Committee of the Fund (“MC”) was of the view that the practice of the fitness centre was highly unscrupulous and that significant consumer interest was involved in this case and recommended that assistance be granted to the applicant. By the end of the reporting period, the Fund was seeking endorsement from the Board of Administrators of the Fund on the recommendations of the MC to grant assistance to the applicant.
Statistics
Annexure 1 to this report is a brief statistics of the Fund’s cases.