Hong Kong Ordinances

MONEY LENDERS ORDINANCE - SECT 27

Charges for expenses etc. not recoverable

(1) Any agreement entered into between a money lender and a borrower or
intending borrower for the payment by the borrower or intending borrower to
the money lender of any sum for or on account of costs, charges or expenses
(other than stamp duties or similar duties) incidental to or relating to the
negotiations for or the granting of the loan or proposed loan or the
guaranteeing or securing of the repayment thereof shall be illegal. (Amended
69 of 1988 s. 23)

(2) (Repealed 69 of 1988 s. 23)

(3) Subject to section 33A(5), it shall not be lawful for any money  lender or
his partner, employer, employee, principal or agent or any person acting for
or in collusion with any money lender to charge, recover or receive any sum as
for or on account of any such costs, charges or expenses (other than stamp
duties or similar charges) or to demand or receive any remuneration or reward
whatsoever from a borrower or intending borrower for or in connection with or
preliminary to procuring, negotiating or obtaining any loan made or
guaranteeing or securing the repayment thereof. (Amended 69 of 1988 s. 23)

(4) If any money or money's worth is directly or indirectly paid or allowed to
or received by any person in contravention of this section, the amount or
value thereof, to the extent of such contravention and notwithstanding any
agreement to the contrary, may be recovered by the borrower from such person
or, if such person is the money lender or a partner, employer, employee,
principal or agent of the money lender or is in any way acting for or in
collusion with him, may be set off against the amount actually lent (and that
amount shall be deemed to be reduced accordingly) or may be recovered by the
borrower from such person or from the money lender.