7 held as loanshark syndicate smashed

POLICE have smashed a loanshark syndicate which collected debts by credit card and offered loans at an annual interest rate of up to 540 per cent.

Seven people were arrested during raids by 60 officers, starting last Thursday. They included the 40-year-old mastermind, alleged to be a Sun Yee On member, and his 35-year-old wife.

Three more suspects are still at large.

Hong Kong Island Regional Anti-triad Unit Superintendent Leung Hung-wai said the syndicate had lent about $3 million to about 800 people.

Loans were offered at 10 to 15 per cent for a 10-day period, snowballing into annual rates of 360 to 540 per cent.