My TakeCrooks are setting up Hong Kong for a subprime crisis of its own
Unscrupulous lenders and their middlemen are touting ‘worry-free’ loans – and our government seems helpless to do anything about it
If you watch television regularly, you will have noticed Hong Kong has its own version of subprime lending. Some advertisements are so outlandish they ought to be outlawed.
One features an elderly woman who joyfully reverse-mortgages her home to take out money for her son to start a business. That’s proof of love, the ad says.
Another has a young couple taking endless photos and selfies, only to want more and more expensive camera and lens equipment. But what to do now that both have “maxed out” their credit cards? Call a lender and draw a personal loan, of course.
What kind of loans are on offer? Some ads say no face time is necessary, nor proof of earnings, employment or financial statement. You can apply by phone or on the internet, they claim, and money will be deposited into your bank account right away.
Why not crack down on the middlemen, many of whom use deceptive tactics to induce borrowers to take out loans, and charge high fees in the process?
“I need a loan,” a poor guy in one commercial begs. “No worries, you’re not alone,” a beautiful lender, who magically appears, replies. I doubt debt collectors will look anything like that pretty lady.