In a significant crackdown on illegal lending practices, police announced on Tuesday the arrest of 13 individuals, including a 14-year-old student, tied to a loan shark syndicate that allegedly operated with impunity in the city. The operation, which has been linked to over HK$100 million in criminal cases, highlights a growing concern over predatory lending and violent debt collection practices.
Authorities reported a troubling rise in debt collection incidents, prompting an extensive investigation. Police spokesmen revealed that loan sharks have been exploiting vulnerable citizens, particularly those with low credit scores, through cold calls and social media platforms. These tactics allowed the syndicate to lure victims into borrowing money under deceitful terms.
Victims often faced exorbitant interest rates ranging from 180% to a staggering 1645%, far exceeding Hong Kong’s legal limit of 48%. Once borrowers struggled to repay their loans, the syndicate employed aggressive tactics to intimidate them, including threatening phone calls and even vandalism with red paint.
During their investigation, officers uncovered that the syndicate utilized stooge accounts from local banks to facilitate their operations, effectively laundering over HK$100 million from March 2023 to July 2024. The police operation, conducted on August 12, involved raids on several locations across Hong Kong, leading to the apprehension of suspects aged between 14 and 66. Charges against the group include conspiracy to operate unlicensed money services, criminal damage, and money laundering.
Among the arrested, six individuals were identified as stooge account holders, underscoring the complex web of complicity involved in the syndicate’s operations. Authorities confirmed that at least 20 victims had borrowed amounts ranging from HK$10,000 to HK$100,000, often after previously falling prey to illegal loan sharks who had exploited their personal information.
The police emphasized the importance of public awareness regarding these predatory lending practices, as they continue to investigate and dismantle such criminal enterprises in the region.
