The Judiciary Police (PJ) has cracked down on a group for illegal lending, arresting five local residents, with still more to be believed on the run, the PJ reported yesterday.
In total, the case involved HKD24 million and at least 86 incidences of profiteering.
The case was firstly reported to the PJ in June 2017, when 10 local residents filed a report to the bureau and other governmental departments.
According to the victims, they were told that they were obliged to pay between 8% and 10% interest on the borrowing.
The illegal lender also requested that the borrowers pay the interest within 12 months of the borrowing, and during this period, the borrowers were not allowed to pay off their loan in advance.
Some of the victims who failed to repay were sued by the loan group.
According to the PJ, the group started operations in July 2015. They advertised their business by handing out cards outdoors, and through an online platform.
Five people have been arrested, including four men and one woman. They were the brains of the group, aged between 28 and 59 years old. All five will be charged with profiteering and money laundering.