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| A number of Philippine passports held as collaterals were reportedly found in RichRen's offices |
Hong Kong Police have confirmed the filing of charges against RichRen Finance Limited in Mong Kok, which they raided in November last year on suspicion of illegal money lending.
According to the police, RichRen was officially
indicted for lending money at excessive rate and accepting prohibited security
(like passports) for loan. The case has been scheduled “for mention” in court
on October 14.
During the raid, a number of Philippine passports
were found inside the financing company’s office and taken away pending further
investigation.
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| Basahin ang detalye! |
Similar raids were also carried out at the shops
across Hong Kong of two mobile phone retailers suspected of engaging in money
lending without a licence.
A total of 46 people were arrested during the crackdown
which the police said at the time were related to a syndicate that had illegally
extended loans amounting to at least $39 million to 6,500 domestic helpers.
The force said the syndicate had charged an annual
interest rate of around 100 percent for the loans.
Following the raids, the Philippine Consulate said
those whose passports were being held by the police should contact them
directly so they could be informed about the process and conditions for issuing
them with new documents.
It also issued a reminder that using or accepting
passports as collaterals for loans is a serious offence under the Philippines’
New Passport Law, which prescribes a prison term and fine for violators.
As a matter of practice, the Consulate never returns passports used as collateral for loans, as this could amount to condoning an illegal act. In addition, the replacement passports issued to those who pawned them for loans are valid for only five years, instead of the usual 10.
Passport applicants are also made to sign an undertaking that they will not commit the offense again, otherwise they will only be issued a one-way travel document.
