Hong Kong police have recently made a significant breakthrough by arresting 46 individuals involved in an illegal money lending scheme targeting domestic workers. These perpetrators posed as phone retailers and offered loans to domestic workers with exorbitant annual interest rates reaching as high as 400 per cent. This illegal operation violated Hong Kong’s Money Lenders Ordinance, with suspects facing charges related to possessing unlawfully obtained travel documents and money laundering.
The suspects, consisting of 17 men and 29 women ranging from 20 to 76 years old, took advantage of domestic workers in need of financial assistance by imposing unreasonable terms, handling fees, advance repayment, and hidden costs. Chief Inspector Ho Yan-kit of the Hong Kong Island regional crime unit highlighted the abusive tactics employed by these illegal lenders, including forcing victims to purchase unnecessary electronics to secure loans. Moreover, victims had to surrender their passports, employment contracts, and employers’ contact information, with lenders resorting to harassment if repayments were not met.
During a surprise police inspection, authorities uncovered incriminating evidence such as receipts and loan records from the illicit operations. It was revealed that one of the phone retailers had loaned out HK$9 million to approximately 1,500 individuals in the past six months, while the other retailer disbursed HK$30 million to around 5,000 people. These unscrupulous practices had been ongoing for several years, exploiting vulnerable domestic workers who were reluctant to report such high-interest loans to the authorities.
In addition to the arrests related to the phone retailer scheme, Chief Inspector Wong King-shing disclosed that members of four illegal lending websites and the mastermind of a local lending syndicate were also apprehended. These websites targeted domestic workers, requiring their personal documents for loans and charging exorbitant administrative fees, resulting in staggering annual interest rates of up to 3,000 per cent. Wong emphasized the prevalence of such online scams and urged caution among domestic workers to avoid falling victim to these unregulated lenders.
Chrystie Lam, president of the Coalition of Global Home Service Sustainable Development, underscored the importance of reporting such illicit activities and advised against resigning or repeatedly borrowing to repay high-interest loans. Lam encouraged employers to support their domestic workers who may have been ensnared by these schemes, emphasizing the need for collective action to combat illegal lending practices in Hong Kong.
The crackdown on illegal money lending targeting domestic workers serves as a stark reminder of the vulnerabilities faced by marginalized communities and the imperative of safeguarding financial well-being through regulatory measures and public awareness campaigns. By exposing and dismantling these exploitative operations, law enforcement authorities aim to protect the rights and dignity of domestic workers in Hong Kong. It is crucial for individuals to remain vigilant and report any suspicious financial dealings to prevent further victimization in the future.
