Latest news with #loansharks
South China Morning Post
12-07-2025
- Business
- South China Morning Post
Hong Kong must stop loan sharks from preying on the vulnerable
The misery inflicted on desperate debtors by Hong Kong's predatory loan sharks is well known and has persisted despite laws intended to combat the problem. Victims face crippling rates of interest, exceeding the legal limit, and are often sucked into a spiral of debt. Those who fall behind with payments are often intimidated and their family members and employers harassed. There is a need to do more to prevent such abuses. The public consultation , launched last month, on strengthening regulation of the sector provides a much-needed opportunity for reform. It should lead to meaningful changes that better protect borrowers and crack down harder on miscreant lenders. The measures need to have teeth. Money lenders are already required to obtain a licence. The permitted interest rate is capped at 48 per cent. It was cut from an eye-watering 60 per cent in 2022, but remains high. Lenders often charge debtors extortionate handling fees, sometimes a third of the sum borrowed, which effectively raises the interest rate way beyond the legal level. This needs to be tackled. Many of those deep in debt are on low incomes, especially foreign domestic helpers . The government proposes a cap on the amount a low-income individual can borrow when taking on an unsecured personal loan. This would be based on their salary. A limit would also be imposed on the proportion of their income they are required to repay each month. Another problem is that of 'referees' for borrowers being harassed . They must consent to the giving of a reference and are not liable for the debt, but are often targeted by lenders. The proposals would require steps to be taken to confirm consent has been given. Officials are also suggesting that the biggest lenders be required to join the centralised Credit Data Smart system to check the creditworthiness of potential borrowers. So far, only 36 out of 2,048 licensed lenders have joined. Other proposed measures include improving the complaints mechanism and stepping up publicity. The government's proposals are a step forward. A balance must be struck between ensuring sufficient access to credit and preventing abuse. But there is room for more to be done. Lawmakers have called for tougher measures. Their suggestions and others raised during the consultation must be carefully considered.
South China Morning Post
12-07-2025
- South China Morning Post
Hong Kong must unite to prevent criminal gangs from exploiting children
Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at letters@ or filling in this Google form . Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification Hong Kong Committee on Children's Rights is outraged at the systematic targeting of children by drug and loan shark syndicates. During the summer holidays, all parties should pay more attention to the minors around us to prevent them from falling into the crime traps set for them. This week, the Hong Kong police arrested a 13-year-old boy on suspicion of drug trafficking after uncovering narcotics worth about HK$530,000 (US$67,515) in his Mong Kok home. A preliminary investigation revealed that the boy had been recruited through social media, and received HK$4,000 as payment for hiding the drugs. Another report , 'Police break up Hong Kong loan shark syndicate that hired teen debt collectors' (June 26), revealed that 22 people, had been arrested, including four who were under 18 years old. These students were recruited through encrypted chat groups to do frontline dirty work, like making intimidating calls to debtors and vandalising their homes with red paint. They were paid HK$500 to HK$1,000 per job. The maximum penalty for trafficking in a dangerous drug is life imprisonment and a fine of HK$5,000,000 on indictment under Hong Kong law, while criminal intimidation and criminal damage are liable to five years' and 10 years' imprisonment, respectively. Professionals often systematically use children and youth as mules in illegal activities as they tend to be less informed, less able to afford legal protection and arguably have the most to lose.
South China Morning Post
07-07-2025
- Business
- South China Morning Post
‘Mentally debilitating': Hong Kong couple faces threats, harassment from loan sharks
When his health supplement business struggled with cash-flow problems, Bobby Tan* turned to a so-called professional networking group in Hong Kong for help, borrowing HK$300,000 (US$38,220) from a licensed small lender in April last year. Over the next 10 months, the Hong Kong permanent resident from Southeast Asia continued to take on more debt, borrowing from 30 different licensed moneylenders for a total of HK$5.05 million. Each lender charged him an illicit upfront 'commission' of 15 to 30 per cent in addition to other expenses – effectively an interest rate of 1,031 per cent. After deducting agents' commissions, he only received HK$4.15 million in loans. Having repaid more than HK$4.78 million, these lenders, who operate no differently from loan sharks, are still chasing Tan for HK$1.87 million. When Tan overborrowed and was living in fear of being chased back for unpaid loans in December last year, the agents persuaded him to use his wife's name, Alicia*, to borrow more.
Free Malaysia Today
21-05-2025
- Free Malaysia Today
Terengganu man beaten up, left naked by loan sharks
Terengganu police chief Khairi Khairuddin said all the suspects admitted to conducting illegal moneylending activities around Kuala Terengganu since March. (Bernama pic) PETALING JAYA : A man in Terengganu was beaten up, stripped and left naked in the bushes after attempting to borrow money from loan sharks yesterday. Buletin TV3 reported state police chief Khairi Khairuddin as saying the 24-year-old lodged a police report at the Kuala Terengganu police station yesterday. He said a team from the commercial crime investigation department then arrested five men aged 16 to 39 years in a special operation from yesterday until today. Khairi said the victim told police he had contacted one of the suspects, a syndicate member, via WhatsApp to obtain a loan. 'However, the victim was taken in a car, beaten up, stripped and left naked in the bushes near Bukit Khor, Marang. 'His personal effects, including his mobile phone, wallet and identity card were also stolen from him,' he said. Khairi said all the suspects admitted to conducting illegal moneylending activities around Kuala Terengganu since March. 'We have seized two Proton Saga cars, five mobile phones and recovered the victim's clothes. 'Checks found three of the five suspects have criminal records,' he said. Khairi said all the suspects have been remanded for four days to assist in investigations under Sections 5(2) and 29B of the Moneylenders Act 1951 for unlicensed moneylending.
