Four men arrested for illicit lending at staggering 1000% interest rate p.a. in Mong Kok finance firm crackdown

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26th January 2024 – (Hong Kong) Authorities have apprehended four men in the Mong Kok district, suspected of offering loans at an exorbitant interest rate of 1,000% per annum. This rate grossly exceeds the legal limit set by Hong Kong’s Money Lenders Ordinance, which caps the annual interest rate at 48%.

The arrests, which included individuals aged between 24 and 42, came after a thorough investigation that was initiated following a complaint received in December of the previous year. The financial company in question was reportedly charging interest rates well beyond statutory thresholds, triggering a decisive response from law enforcement.

During the operation, officers seized an array of evidence, including computers, bank cards, a significant number of IOUs, and ledgers. These items are currently being scrutinised to ascertain the extent of the illicit lending and identify the victims involved. The suspects have been detained for further investigation, with the possibility of additional arrests as the inquiry continues.