The government was on Sunday urged to limit how much domestic helpers are allowed to borrow and to introduce licensing for debt collectors.

DAB lawmaker Edward Leung made the call after being approached for help by around 20 employers, who told him that their helpers had fallen victim to loan traps after filling out online forms.

He said helpers had to pay back amounts ranging from a few thousand dollars to HK$100,000.

"Currently in Hong Kong, [lenders] need to get a licence. However for debt collectors, they do not need to apply for a licence. However, in many places around the world for example in the UK, debt collectors do need a licence," he said.

"If this kind of situation worsens in Hong Kong, I believe that it will force the government to take further steps to set up certain laws to contain this kind of illegal debt collecting. For example, for debt collectors, they need to apply for a certain licence."

Leung said one disturbing trend involved debt collectors threatening to publish AI-generated pornographic deepfake photos of employers who refused to pay their helpers' debts.

He also noted a case of a helper borrowing money from a lender outside Hong Kong and being hit with a demand for more than double the sum just two weeks later.