Question No. 2
Hon CHEUNG Yan-lung, OBE, SBStJ, JP
In view of the pernicious activities of loan sharks, which allegedly have caused tragedies to some families in public housing estates, will Government inform this Council:
(a)
(b)
(c)
whether it has considered it necessary to review the effectiveness of the Money Lenders Ordinance;
how many persons have been prosecuted under section 24 of the Ordinance since its amendment in May 1984 to extend the time limit for instituting prosecutions for the offence of charging excessive interest from six months to two years and how many of these persons were convicted; and
what new measures will be taken to curb loan sharking activities?
Sir,
REPLY BY THE HONOURABLE THE FINANCIAL SECRETARY IN LEGISLATIVE COUNCIL: WEDNESDAY 25 MARCH 1987
A comprehensive review of the Money Lenders
Ordinance was conducted in January 1986 to determine
whether demand still existed for the services offered by
money lenders and whether the Ordinance provided an
effective framework for controlling their activities.
This review concluded that some such demand did exist,
although at a lower level than before. The number of
licensed money lenders dropped from 1 540 in January 1981
to 436 at the end of October 1985, and to 412 at the end
of February 1987. The review also concluded that the
Ordinance was generally successful in preventing loan
sharking and lending at usurious rates. In particular,
there was seen to be no need to increase the penalties
provided under the Ordinance.
12. As regards
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