Hong Kong police arrest 46 over illegal money lending to domestic helpers
Syndicate suspected of providing HK$39 million in high-interest loans with rates starting at 100 per cent
Hong Kong police have arrested 46 people and cracked down on a syndicate suspected of illegally lending at least HK$39 million to 6,500 domestic helpers.
The force said on Tuesday the syndicate mainly lured domestic helpers into high-interest loans, charging simple annual interest at a rate of 100 per cent.
Police on Sunday and Monday raided eight phone retail shops associated with a syndicate, which purported to operate as a regular chain and individual stores. A video circulating on social media captured Sunday’s arrests outside World Wide House in Central.
The investigation revealed that the illegal money lender used the guise of a mobile phone chain to conceal its activities. Domestic helpers who wished to apply for loans were coerced into purchasing more expensive “gift boxes” that contained a mobile phone, skincare products and a small amount of cash.
“[The syndicate] also took advantage of the helpers who were in need of getting the loans,” Chief Inspector Ho Yan-kit of the Hong Kong Island crime unit said.
