29 arrested in crackdown on loan sharks who charged victims 3,000% in interest

Hong Kong Police have arrested 29 people in a crackdown on a loan-sharking and money‑laundering ring that charged victims annual interest rates as high as 3,000 per cent.Police said on Wednesday that the syndicate had set up a secret call centre in Tsuen Wan and posed as licensed finance companies, randomly phoning people in an attempt to lure them into borrowing money.In the process, they extracted personal information, including occupations, repayment ability and family background.Small loans were initially offered but quickly ballooned as victims were hit with excessive handling fees and interest charges of 25 to 50 per cent within just four to seven days, resulting in effective annual rates soaring to between 450 and 3,000 per cent.When victims were unable to repay, they were forced to take out new loans to cover existing debts.The syndicate then escalated its tactics, offering bogus debt-restructuring plans, inflicting further harm on victims and their relatives.