In recent years, Hong Kong’s economic recession and high unemployment rate have caused many people in financial difficulties to borrow money, but they have fallen into the trap of illegal borrowing finance companies.
In recent days, the police took a code-named "hot corner" operation to smash related illegal money lending syndicates, arresting 63 people including illegal debt collectors, puppet bank account holders, etc., and they were charged with money lending at excessively high interest rates, money laundering, and criminal damage.
More than 300 people were recruited in the case, and they lost more than 20 million yuan.
According to the police, illegal financial companies charge high interest rates and charge borrowers a hidden handling fee exceeding 60% of the law.
Criminals will even spray marked oil on the outside of the borrower’s residence, telephone intimidation and keyholes when collecting debts. The police do not rule out that more people will be arrested.
Recently, the police smashed illegal money lending syndicates and arrested 63 people including illegal debt collectors and puppet bank account holders. They were charged with money lending at excessively high interest rates, money laundering, and criminal damage.
(Photo by Cai Zhengbang)
Some citizens are trapped in financial difficulties by borrowing and falling into the trap of illegal lending finance companies
Chief Inspector of Yuen Long Police District (Criminal Two) Jiang Jiajun pointed out that at the end of 2019, Hong Kong experienced social incidents and was affected by the new crown pneumonia epidemic, which led to an economic recession and an increase in the overall unemployment rate.
Many citizens are in financial difficulties and need to borrow, and some debtors use loans to repay loans due to excessive borrowing, creating a vicious circle.
In the end, due to insufficient credit lines, they could only borrow money from unlicensed or illegal financial companies.
This type of financial company uses relatively loose loan approval standards to attract, but the interest rate is extremely high, and it also charges the borrower a hidden handling fee, which in a disguise makes the annual interest rate of the loan exceed the 60% allowed by the law.
When the borrower is unable to repay the money, the lawbreaker will post threatening letters to the borrower's residence, making phone calls to threaten the borrower to repay the money, and even spray marked oil and a keyhole outside the borrower's residence.
Collect borrowers' repayments through the "puppet account"
The police found that such financial companies made profits by charging high interest and handling fees.
When the borrower is unable to repay the debt, the company will use the online platform to "quick money" as a solicitation to induce young people to engage in illegal debt collection work, each payment ranging from 300 yuan to 500 yuan as remuneration.
In addition, the company uses coercion and offsetting interest as an excuse to ask borrowers to surrender their bank accounts, or to induce others to sell their bank accounts through the Internet.
Criminals will collect borrowers' repayments through "puppet accounts," which will increase the difficulty of police investigations.
Police detained 63 men and women including directors of finance companies, illegal debt collectors, and puppet bank account holders
Yuen Long Police District Chief Inspector (Criminal) Ou Yeung Tak said that as of July 19 this year, the Yuen Long Police District Criminal Division had arrested 61 people in all districts in Hong Kong, including 49 men and 12 women, aged between 14 and 66. , 3 people are suspected of having triad background.
Among the arrested, 30 were illegal debt collectors and 31 puppet bank account holders.
In the afternoon of the same day, the police raided a licensed financial company in Mong Kok with a court search warrant and found that the company was suspected of illegally lending to a victim at an annual interest rate of more than 300%. The victim's residence had been criminally damaged.
During the operation, the police arrested two operation managers and executive directors of financial companies on charges of lending money at excessively high interest rates and money laundering. The two arrested men and women were 32 and 54 years old.
The police seized 83,000 yuan in cash and frozen the company's assets of more than 2 million yuan.
The finance company began operations in June 2019, with an approved amount exceeding HK$20 million, and more than 300 loan victims.
According to the police, the general loan interest of the group is only displayed as 59%, but the staff of the finance company approving the loan will instruct the borrower to collect about 20% of the loan amount from the borrower after the loan is obtained. As an introduction fee.
Criminals require borrowers to repay the loan within a few months, and the actual annual interest rate far exceeds the 60% allowed by the law.
(Photo by Cai Zhengbang)
167 illegal debt collection cases were recorded last year
Yuen Long Police District Assistant Commander (Criminal) Ouyang Zhaogang pointed out that 167 cases of illegal debt collection were recorded in 2020. Compared with 104 cases in 2019, related crimes increased by 61% last year.
From January to March this year, 80 related cases were recorded, an increase of 60% over the 50 cases in the same period in 2019.
According to the police, from March to July this year, members of the Yuen Long Police District Civil Relations Office and the Military Uniform Department held several seminars to members of the security industry.
In this operation, the Yuen Long Police District issued a total of 4 warning letters and 5 letters of appreciation to the security guards of the housing estates in the area.
The police urged that young people should not engage in illegal debt collection or account sales activities because they are greedy for quick money.
Someone who sells their account may also commit a crime of money laundering under Article 25 of the Organized and Serious Crimes Ordinance, Chapter 455 of the Laws of Hong Kong. Once convicted, the maximum penalty is 5 million and 14 years in prison.
01News
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