25 arrested as Hong Kong police bust loan shark ring charging up to 282% interest rate
Teenagers as young as 13 recruited via social media to intimidate debtors with calls and red paint
Hong Kong police have arrested 25 people, some as young as 13, in a crackdown on a loan shark syndicate that charged victims annual interest rates of up to 282 per cent.
Police said on Thursday that the triad-linked crime ring had loaned HK$200 million (US$25.5 million) to about 2,000 residents over the past year, with at least HK$8 million in criminal proceeds funnelled into core members’ personal accounts.
During operations on Tuesday and Wednesday, officers raided three operating centres run by the group in Mong Kok and Fo Tan, as well as the residences of key members.
Investigations revealed that the group promoted “no-vetting” loans and borrowing discounts through cold calls and social media.
It charged borrowers a 20 per cent handling fee and imposed heavy penalties for late repayment, resulting in effective annual interest rates as high as 282 per cent. In some cases, the penalty reached up to 800 per cent of the original loan amount.
To enforce repayments, the syndicate recruited teenagers via social media to intimidate debtors, which included making threatening phone calls and splashing red paint on their doors.