Hong Kong police smash loan shark syndicate, arrest 22
Hong Kong police have arrested 22 people suspected of running a loan shark syndicate charging annual interest rates exceeding 300 per cent, far above the legal cap of 48 per cent. Officers raided two licensed finance firms in Yau Ma Tei and seized over HK$2 million in cash, documents and valuables.
Hong Kong police have arrested 22 people in a crackdown on a loan shark syndicate that charged annual interest rates exceeding 300 per cent, far above the legal maximum of 48 per cent. The arrests, made on Monday, involved 16 men and six women aged between 27 and 71, on suspicion of offences including lending at excessive interest rates, criminal damage, criminal intimidation and money laundering.
Police said they believed the operation had successfully dismantled a high-interest lending syndicate that controlled two licensed money-lending firms in Yau Ma Tei. Officers raided the premises on Monday. Investigations revealed that bank accounts linked to the firms had recorded more than HK$90 million in transactions over the past year.
The syndicate targeted members of the public through online advertisements and telemarketing, offering quick loan approvals, no credit checks and simple procedures, police said. However, during the loan process, the syndicate used various excuses, such as charging handling or administrative fees, to deduct from the loan amount. Police found that the firms deducted 25 per cent of the loan as a handling fee, pushing the effective annual interest rate well above the legal limit.
Police also said the syndicate used illegal debt-collection methods, including splashing red paint at borrowers' homes and workplaces, posting collection notices with borrowers' personal information, and harassing borrowers and their relatives through phone calls and messaging apps.
During the operation, police seized more than 1,000 loan documents, about HK$2 million in cash, multiple computers and mobile phones, and a number of luxury watches and valuables.