Introduction
This is a report on the financial status of the Fund and the progress of assisted cases for the period from 1 April 2022 to 30 September 2022.
Finance
During the reporting period, the total income and expenditure of the Fund were HK$167,000 and HK$1,060,000 respectively. As at 30 September 2022, the total accumulated fund stood at about HK$13 million.
Overview
During the reporting period, the Fund received 38 new applications. In addition, 6 applications were received prior to the reporting period and were under process during the reporting period. Amongst these 44 applications, 9 were declined, 8 remains under consideration and 1 was resolved during application. The Fund has granted assistance to 26 applications.
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. With the Fund’s assistance, the assisted consumer succeeded in his legal action against the fitness centre and obtained a winding up order with costs in his favour.
During the reporting period, liquidation of the fitness centre was in progress.
- 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 and its agent. With the Fund’s assistance, the assisted consumer succeeded in her legal action and obtained judgment against the trader and the agent.
During the reporting period, enforcement actions were in progress.
- Purchase of Residential Property – Breach of Duty and Contract
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 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 2 personal training agreements as a result of unfair trade practices and unconscionable conduct of the fitness centre.
During the reporting period, the District Court ordered that judgment be entered in favour of the Assisted Consumer against the Trader. As the Trader did not pay the judgment debt to the Assisted Consumer, the Fund extended the scope of assistance to the assisted consumer to cover enforcement proceedings.
- Time-sharing Scheme – Aggressive Commercial Practices
Evidence indicated that the assisted consumer was pressurised into executing a vacation club membership agreement by aggressive sales tactics adopted by the trader including prolonged and persisted sales pitching.
During the reporting period, legal proceedings were commenced against the trader. After rounds of negotiation, the assisted consumer received a negotiated settlement sum and the matter was settled.
- Beauty Services – Personal Injuries Claim
Evidence indicated that the assisted consumer suffered personal injuries as a result of facial treatment provided by the trader.
During the reporting period, the Fund instructed solicitors to act for the assisted consumer with a view to commencing legal action against the trader. Pre-commencement works were in progress.
- Beauty Services – Personal Injuries Claim
Evidence indicated that the assisted consumer sustained personal injuries as a result of facial treatment performed by a doctor at a medical beauty centre.
During the reporting period, the Fund instructed solicitors to act for the assisted consumer.
- Immigration Consultancy Services – Breach of Duties
Evidence indicated that an immigration consultancy services company had breached its contractual and common law duties of care towards the assisted consumers, rendering them unable to proceed with their immigration process.
During the reporting period, the Fund instructed solicitors to act for the assisted consumer.
Newly Assisted Case
- Time-sharing Scheme – Aggressive Commercial Practices
Evidence indicated that the assisted consumer was induced to execute a vacation club membership agreement by aggressive sales tactics adopted by the trader.
The Fund considered that the case involved sufficient legal merits and significant consumer interest, and offered legal assistance to the assisted consumer. However, before commencement of the assistance, the assisted consumer withdrew the application due to personal reasons.
- Immigration Consultancy Services – Breach of Duties
Evidence indicated that an immigration consultancy services company had breached its contractual and common law duties of care towards the assisted consumer, rendering his immigration application to Canada unsuccessful. The assisted consumer had since immigrated to the UK.
The Fund considered that the case involved sufficient legal merits and significant consumer interest. However, before commencement of the assistance, the assisted consumer withdrew the application due to personal reasons.
- Purchase of Residential Property – Breach of Duty and Contract (21 cases)
Evidence indicated that the developer had failed to provide a first mortgage plan entailing a 2-year principal and interest free period offered to purchasers at the time of sale. During the reporting period, the Fund had instructed solicitors to provide assistance to 21 purchasers.
- Time-sharing Scheme – Aggressive Commercial Practices
Evidence indicated that the assisted consumer was induced to execute 3 vacation club membership agreements by unconscionable and unfair tactics adopted by the trader.
The Fund considered that the case involved sufficient legal merits and significant consumer interest. Upon due execution of the Agreement with the Assisted Consumer, the Fund will instruct solicitors to commence proceedings against the trader.
- Legal services – Breach of Duties
Evidence indicated that a law firm had breached its duties of care and fiduciary duties towards the assisted consumers, causing them to suffer loss as a result of the loss of priority in the charging order obtained over the judgment debtor’s property to another client of the law firm.
The Fund considered that the case involved sufficient legal merits and significant consumer interest. By the end of the reporting period, the Fund was in the process of instructing solicitors to act for the assisted consumer.
- Financial Services – Fraud
Evidence indicated that the assisted consumer suffered loss due to suspected fraud perpetrated by a trader purporting to offer gold trading services.
The Fund considered that the case involved sufficient legal merits and significant consumer interest. By the end of the reporting period, the Fund was in the process of instructing solicitors to act for the assisted consumer.
Statistics
Annexure 1 to this report is a brief statistics of the Fund’s cases.