Consumer Affairs Minister Craig Foss says protection for borrowers will be strengthened when the Credit Contracts and Financial Services Reform Bill is in law and they won't be trapped in a spiral of uncontrolled debt Corset Hong Kong.

The bill passed its first reading on Tuesday night and has been sent to a select committee for public submissions.

Its measures include:

* Making it illegal to lend money to someone whose loan repayments would be likely to result in financial hardship

* Requiring lenders to properly consider applications by borrowers for hardship relief

* Better controls against misleading, Underwear Sale deceptive or confusing advertising

* A new Code of Responsible Lending which will mean lenders can be banned for non-compliance

* Preventing goods from being repossessed unless they are specifically identified in the credit contract

* The licensing of repossession agents.