Students among arrested 25 over loan sharking

Police arrest 25 people on suspicion of taking part in loan-sharking, seizing a total of 10.34 million dollars. Many arrestees have a syndicate background. The youngest suspect is 13 years old.

During the two-day operation, the police seize a wide array of evidence from the syndicate, including 1.94 million dollars worth of cash and designer brand handbags.

Investigation shows that the group operated three establishments in Mong Kok and Fo Tan: one licensed financial company and two mobile centres. Under the disguise of the licensed company, the syndicate promoted their money lending schemes to members of the public on social media and through cold calls.

In the process, the group would demand a high loan shark rate reaching 282% annually, which far exceeds the maximum 48% interest rate allowed by the law. If borrowers failed to pay, members would threaten them through phone calls and splash red paint on doors.

In just one year, the syndicate loaned more than 200 million dollars to 2,000 borrowers. Meanwhile, the police note that four of the 25 arrestees are students, with the youngest one being 13.

Lo Ka-chun, superintendent of organised crime and triad bureau, says " Most of them are recruited (after) they saw some advertisement from the Telegram or (on) some other social media for quick cash opportunities and therefore falling prey to join this loan-sharking syndicate."

The police urge members of the public to use licensed and legitimate financial institutions for money lending to avoid illegal loan sharks.