Introduction
This is a report on the financial status of the Fund and the progress of assisted cases for the period from 1 April 2021 to 30 September 2021.
Finance
During the reporting period, the total income and expenditure of the Fund were HK$268,000 and HK$476,000 respectively. As at 30 September 2021, the total accumulated fund stood at about HK$14 million.
Overview
During the reporting period, the Fund received 19 new applications. In addition, 20 applications were received prior to the reporting period and were under process during the reporting period. Amongst these 39 applications, 17 were declined, 16 remains under consideration, 4 was resolved during application and 1 was resolved by other action. The Fund has granted assistance to 1 application.
Progress of cases
Cases Carried Over From Previous Year
- Columbarium – 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 to do so on the ground that the deceased’s name printed on the receipt issued by the columbarium was different from the name on her death certificate and Hong Kong Identity Card.
During the reporting period, the columbarium’s application for licence under the Private Columbaria Ordinance (PCO) was under review by the Private Columbaria Licensing Board. Meanwhile, the ashes were interred at another columbarium and Assisted Consumer wished to wait for the grant of licence to the columbarium. In the circumstances, the Fund continued to monitor the progress of the columbarium’s application under the PCO.
- Fitness Services – Aggressive Commercial Practices
Evidence indicated that 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 unfair trade practices and unconscionable conduct of the fitness centre.
During the reporting period, the High Court ordered the fitness centre to be wound up with costs to the assisted consumer. Joint and Several Provisional Liquidators were appointed by the Official Receiver. The liquidation process is underway.
- Financial Services – Breach of Duty and Contract
Evidence indicated that the assisted consumer sustained loss in investing in London Gold as a result of the breach of duty and contractual obligation by the trader. In view of the circumstances of the case, the Fund considered that there were sufficient merits and significant consumer interest for assistance to be granted for legal action to be taken against the trader.
During the reporting period, legal proceedings were commenced against the trader and its agent. Legal proceedings in the District Court are in progress.
- Residential Renovation Works – Unscrupulous Trade Practices and Contract
The assisted consumer had contractual dispute with the trader concerning residential renovation works at his property. After measuring the flat, the trader substantially inflated the quotation price for the furniture as well as renovation works and thus the assisted consumer decided not to proceed with the renovation works. However, the trader alleged that an agreement had already been made and sued the assisted consumer in the District Court for the price of the works as stated in the quotations provided after the measurement had taken place.
During the reporting period, a settlement agreement was made between the assisted consumer and the trader. The action in the District Court was discontinued.
- Purchase of Residential Property – Breach of Duty and Misrepresentation
Evidence indicated that the assisted consumer was induced to purchase a unit adjoining the flat roof in reliance of an improper floor plan and misrepresentations given by the estate agent.
During the reporting period, legal proceedings against the estate agency and the estate agent in the District Court were commenced and are in progress.
- Fitness Services – Unfair Trade Practices and Unconscionable Conduct
The Fund granted assistance to the assisted consumer who, as evidence indicated, had entered into a membership agreement and a personal training agreement as a result of unfair trade practices and unconscionable conduct of the fitness centre.
During the reporting period, the Fund instructed solicitors to act for the assisted consumer. Legal action against the trader is underway.
- Residential Renovation Works – Unscrupulous Trade Practices and Breach of Contract (Case 1)
The assisted consumer suffered considerable loss as a result of the trader’s failure to complete a residential renovation project due to its financial difficulties notwithstanding accepting payments from the assisted consumer. Evidence indicates that the trader and the director involved might have known that its business was in serious difficulties but continued to accept payments.
However, before the commencement of the assistance, the assisted consumer withdrew the application due to personal reasons.
- Residential Renovation Works – Unscrupulous Trade Practices and Breach of Contract (Case 2)
The assisted consumer suffered considerable loss as a result of the trader’s failure to complete a residential renovation project due to its financial difficulties notwithstanding accepting payments from the assisted consumer. Evidence indicated that the trader and the director involved might have known that its business was in serious difficulties but continued to accept payments.
During the reporting period, the Fund instructed solicitors to act for the assisted consumer. Legal proceedings were commenced against the trader which failed to file any notice of intention to defend. The court issued a default judgment against the trader.
Newly Assisted Case
- 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 persisted sales pitching.
The Fund considered that the case involved sufficient legal merits and significant consumer interest. During the reporting period, the Fund instructed solicitors to act for the assisted consumer.
Statistics
Annexure 1 to this report is a brief statistics of the Fund’s cases.