Who are unregistered money lenders?
Under the Money Lenders Ordinance of Hong Kong, a person who has a business as a money lender must be licensed. If a money lending business does not have a license, it is an unregistered money lender and they are not allowed under Hong Kong law to give out money or loans.
Unregistered or unlicensed money lenders are illegal under Hong Kong law. Most common unregistered money lenders include:
- Illegal money lenders legally operating as a supermarket but do not have a license to lend money
- Illegal money lenders that operate as remittance companies but do not have a license to lend money
- Illegal money lenders illegally operating as “lottery clubs”
Helpful Tips
- Check that the money lender is licensed before you apply for a loan: if you think that the money lender is not licensed, ask for proof of the license or check on this list. If they are not licensed, do not agree to a loan.
- If you take out a loan, save all receipts of payments: You should keep proof of all the payments you have made. Keep both the paper receipt and take a picture. This is just in case the money lender tries to say that you have not repaid the loan.
- Document and keep proof of any contact you have with the money lender: if the money lender is sending you threatening messages or harassing you, keep proof of this through pictures, videos, or recordings. If you decide to make a police report, this evidence will be useful for the police.
- Seek help from an NGO or legal advisor: if you are worried about the loan or if you are being harassed by the money lender, seek help and support.
- If the harassment is very bad, you may consider suing the money lender in court for money: if the money lender is repeatedly harassing you, you can sue the money lender in court for harassment. If you are successful, the court may order for the money lender to compensate you (give you money) for the harassment you faced. You may consider contacting a lawyer or an organization listed below for help if you need it.
- Do not take out more loans to cover other loans: if you are struggling to repay the loan or you are being pressured or harassed, seek help first before panicking and taking out more loans.
- Do not make promises you cannot fulfill: if you know you will not be able to pay the loan back fully, or if you are not sure about the loan, make sure you get advice and help before agreeing.
- Double check the interest rate: some loans have extremely high interest rates which can make it difficult to pay the loan back.
