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

29 arrested in crackdown on loan sharks who charged victims 3,000% in interest Syndicate set up call centre and posed as licensed finance companies, tricking victims into taking out loans 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. [Image text:] MMPPANT IMRORTANN KE RN26002455 500 500 IMPORTANT 500 Operation COLDPALACE 500 500 8888888888 00 00 00 00 500 500 500 1000 500 500 11000 00 1000 500 1000 DO 00 1000 1000 MPORTANT 100 BRTANT LO2HA MPORTAN ORTANT O 1000 L00 1000 500 500 O0 1000 AM