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Beware of Job Offers That Turn Into A Debt Trap - CHOICE # 428

  • 2012.06.15

The Consumer Council has received job seekers' complaints on having fallen prey to scams as they are lured to pay hefty sum for the promise of lucrative job offers that never materialized.

The number of employment-related complaints has pointed to an upward trend: the figure jumped 120% from 35 complaints in 2010 to 77 in 2011.

Most of the victims are students or new school leavers who have been misled, or came under high pressure, to spend tens of thousands of dollars, or even take out a loan, for training and products in the hope that it would land them a job.

But before getting a job, some may find themselves slipping into a debt trap.

Below are some cases in which consumers had accused companies of employing misleading practices when presenting job opportunities:

Case 1

Long aspired to work in emceeing, voice acting and background music, Ka-yee applied for a job in a music agency, whose music director, as claimed by the company staff, was a famous sing-a-song writer.  When she went to the company for an interview and audition, her confidence in the company was further boosted as she found the staff discussing about how the music director had honed the singing skills of a contestant at a TV show. 

Later, Ka-yee was told that she was a suitable candidate for the position.  But before taking up the job, she was persuaded to join a training course which cost HK$38,000.  Considering the course too expensive, Ka-yee did not give a prompt reply and all of a sudden, a recruiter hit the desk with a loud bang.  He asked Ka-yee to pay HK$1,600 immediately and hand over her credit card and identity card.  Under fear and pressure, Ka-yee submitted and signed documents as well as credit card slips under the recruiter's order.  Only after she had completed signing the contracts did she learn that the amount on the credit card receipt was HK$38,000 instead of HK$1,600.  She raised her objection immediately and requested to get back all the signed documents, but was rejected by the company and told to leave.

Realizing that she had been scammed, Ka-yee took her case to the Consumer Council hoping that it would serve as a case to alert the public about the company's sales tactics.

Case 2

Siu-ling was interested in the career as a Mandarin teacher after completing the A-levels Certificate.  When she spotted a newspaper advertisement on a Mandarin teaching certification programme, Siu-ling contacted the company and was told that she would be awarded a teaching certificate on completion of the programme.  After which, she could earn an hourly rate between HK$350 and HK$500.  The company even promised to offer her a recommendation letter and help her find a job.  Under the impression that she would be guaranteed a job, Siu-ling paid HK$13,500 to join the programme.

She soon found that the promises were false as neither teaching methods nor recitation techniques were taught in the programme, and no assistance was ever provided to her in finding a job.  Siu-ling later took her case to the Consumer Council and the company agreed to refund.

Case 3

Mei-mei, who had just completed secondary school education and applied for a job in a beauty parlour.  When she arrived at the parlour for an interview, she was persuaded to spend HK$28,800 and HK$600 administrative fees in becoming a business development officer.  While Mei-mei was still considering, she was asked to come again the next day.

In desperate need of a job, Mei-mei arrived the following day for an interview again, but this time she was subjected to endless high-pressure persuasion from morning till night until she gave in and agreed to become a business development officer.  At the same time, she was led by a recruiter to take out a loan of HK$30,000 from an on-site credit agency with which she paid for the products and the job.

But afterwards, Mei-mei felt very frustrated as the products and service were not something she needed, and she sought help from the Council for refund of the products and administrative fees totalled HK$29,400.  Her request was rejected by the company, and the Council advised Mei-mei to see redress through legal means.

Job seekers should watch out for the danger of scams:

  • Think twice if a job opening requires the candidate to spend large sum of money for training, products or services.
  • Read the terms and conditions carefully before signing an employment contract.  Verbal promises, such as guaranteeing a job after training, should be put in writing and stated in the contract.
  • Beware of fraud if the company boasted of easy ways to make money.  The job can be a fake opportunity if it promised high wages with few duties, required no experience or qualification.
  • In face of sales pitches or high-pressure tactics from recruiters, job seekers should ask to leave the premise immediately or call the police.
  • Consult friends or relatives if there are any doubts about a company or employment agency.

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