Police smashed seven illegal money-lending and money-laundering companies that lured Hongkongers into borrowing small loans at insane interest rates between 400 percent and 1,396 percent — 23 times above the legal limit.
In one case, the borrower requested a HK$150,000 loan, but in reality only receives HK$100,000 and repays HK$6,000 a month for 48 months—a total of almost HK$300,000 or a 120% interest rate.
With retractable banner stands, flyers, a cold-calling centre, and even websites, these loan sharks lure Hongkongers into borrowing by offering “second mortgages” — though in reality, the loan sharks granted themselves creditor status so that they have the right to seize the borrower’s property if the loan is not repaid. Using threats, these loan sharks squeeze exorbitant interest rates from debtors. 34 people — 24 men and 10 women between 18 to 64 — were arrested and more than HK$25 million were seized
Source: The Sun
Photo: Ding Yuin Shan
