Reports of debt-related threats by phone and red paint splashed at homes led police to investigate borrowers linked to the same West Kowloon finance company. The investigation grew into a week-long operation in which 22 people were arrested, police said.
Police said the group controlled two licensed finance companies in the same Yau Ma Tei commercial building. The companies allegedly attracted borrowers with quick approval, no credit checks and simple applications; one officer said an application could be completed in just over ten minutes. About 25% of the loan was then allegedly deducted as handling or administrative fees.
Police said the effective annual interest rates exceeded the statutory maximum of 48% and topped 300% in some cases. The alleged collection methods included threats at borrowers’ homes or workplaces, red paint, notices displaying borrowers’ personal information, and threatening or harassing their relatives by phone or messaging apps.
The Sham Shui Po district crime division made the arrests between October 9 and 15. On October 12, officers searched the two companies under warrant and arrested three men and four women connected with them, including people described as responsible persons, shareholders and staff. They were suspected of conspiring to lend at excessive interest rates.
Police said officers seized more than 1,000 loan documents, computers and mobile phones, as well as about HK$2 million in cash, watches and gold jewellery described as suspected criminal proceeds. Related company accounts recorded more than HK$90 million in transactions over the previous year, police said. About HK$1 million in assets in one account was frozen.
Ming Pao reported that, at the time of its report, 19 of those arrested had been released on bail pending further inquiries and three remained in custody. Police said the investigation was continuing.