A local company has made claims that it could guarantee to secure for Hong Kong motorists cross-border licences to drive in the mainland.
20 consumers took the company's word for it and together shelled out a total of $89,170 for a service which the company undertook to guarantee but, in the end, was unable to deliver.
When the company refused to honour its refund guarantee promise, the consumers turned to the Consumer Council for help.
The Council today (November 25) named the company for adopting undesirable trade practices detrimental to the interests of consumers.
The company was identified as Guangdong and Hong Kong Training Centre of Motoring trading at Room 753, Star House, 3 Salisbury Road, Tsimshatsui, Kowloon.
Upon the mediation of the Council, the company has settled some of the 20 cases by full or partial refund to the complainants. More than half ($52,940) of the total amount involved ($89,170) was subsequently refunded.
The Council notes that the company is still advertising its services to the public. It was therefore decided to expose the identity of the company to alert the public to such practices.
Complaints against the company were brought to the attention of the Consumer Council as early as January 2003. According to the complainants, they were attracted to the company mostly by newspaper advertisements pledging guarantee in passing the relevant driving exams and in obtaining cross-border driving and vehicle licences.
The complainants had paid the company fees and deposits, ranging from $480 to $20,000, for what they were led to believe was a guaranteed service.
Consumer complaints against the company fell into three main categories:
(a) failure to assist them in passing the relevant driving examination in order to obtain a mainland driving licence as guaranteed (10 cases);
(b) failure to apply for or renew a mainland driving licence on their behalf (4 cases);
(c) failure to assist them to apply for a mainland vehicle licence (6 cases).
Under the law of Hong Kong, if a company refused to entertain the consumer's request for refund despite the Council's mediation efforts, complainants can pursue their claims at the Small Claims Tribunal.
The Council has assisted a complainant to file his case with the Small Claims Tribunal, and the case is now pending for hearing.
Chairing the press conference today (November 25) is Mr. LAM Kin-lai, Chairman of Trade Practices Committee of the Consumer Council.