Action against touting activities of recovery agents welcomed

To : All newspapers/ radio & TV news department

8 July 2008

(for immediate release)

The Law Society of Hong Kong welcomes the Government’s action in combating the unlawful touting activities of recovery agents, resulting in the recent arrest of 21 persons, two of whom have been charged with criminal offences and brought to court today.

"Where victims in personal injury cases turn to recovery agents who offer a "no win, no charge" arrangement, they often end up losing out because their legal rights to compensation may be compromised.” said Mr Lester Huang, President of the Law Society. “These victims usually end up having to pay a sizeable chunk of the compensation recovered to the recovery agents and end up worse off. The Law Society has always advised that these victims should seek advice from solicitors directly, or obtain assistance from the Legal Aid Department or the Social Welfare Department." The Law Society also arranges for solicitors to provide free legal consultation. Members of the public can obtain this service by referring to www.choosehklawyer.org.

The Law Society is particularly concerned that one of the persons charged is a solicitor and will keep a close monitor of the development in this case.

The Law Society believes that the majority of accident victims probably qualify for Legal Aid, which renders it unnecessary for a third party to finance their claims. Since accident compensation in Hong Kong is assessed on the basis of actual loss, the victims will not be adequately compensated if part of their compensation has to be paid over to recovery agents. Even though victims may have received compensation, after paying the recovery agent the more seriously injured ones may end up not having sufficient means to maintain their livelihood.

"We will step up our program to educate the public of the dangers of the touting activity of recovery agents." says Mr Huang.

The Law Society of Hong Kong
Enquiries: 2846 0526