WEDNESDAY, DECEMBER 3, 198.
20
RULES AGAINST LOAN SHARKS
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THE MONEY LENDERS ORDINANCE 1980 - LEGISLATION DRAWN UP TO PROTECT THE PUBLIC FROM UNSCRUPULOUS LOAN SHARKS - COMES INTO EFFECT ON DECEMBER 12.
THE NEW LEGISLATION, SAID A GOVERNMENT SPOKESMAN, INCORPORATES A NUMBER OF +RULES+ DESIGNED TO PROTECT BORROWERS IN THEIR DEALINGS WITH MONEY LENDERS, AND SEEKS TO CURB +ABUSES BY LOAN SHARKS.
AND, IF ANY MEMBER OF THE PUBLIC WANTS TO REFER TO, OR KEEP A RECORD OF, THE NEW PROVISIONS THE GOVERNMENT IS PRINTING A SPECIAL LEAFLET EXPLAINING THEM.
THESE LEAFLETS WILL BE AVAILABLE AT CITY DISTRICT OFFICES, NEW TERRITORIES DISTRICT OFFICES, THE GOVERNMENT PUBLICATIONS CENTRE, PUBLIC LIBRARIES, MUTUAL AID COMMITTEES, RURAL COMMITTEES, HOUSING ESTATE OFFICES AND THE GOVERNMENT INFORMATION SERVICES' MARKETING OFFICE.
THE SPOKESMAN SAID THE MAIN FEATURES OF THE NEW LAW ARE:
*
*
NOBODY CAN LEND MONEY AT AN EFFECTIVE RATE
OF INTEREST EXCEEDING 60 PER CENT. IT IS A CRIMINAL OFFENCE TO DO SO AND CARRIES A MAXIMUM PENALTY OF $100 000 AND TWO YEARS IMPRISONMENT.
INTEREST RATES IN EXCESS OF 48 PER CENT MAY BE REDUCED BY THE COURTS.
*
ALL MONEY LENDERS MUST BE LICENSED IN ORDER TO OBTAIN A LICENCE FROM THE LICENSING COURT MONEY LENDERS MUST SUBMIT THEMSELVES TO DETAILED SCRUTINY BY THE NEWLY APPOINTED REGISTRAR OF MONEY LENDERS AND THE POLICE- THE REGISTRAR AND THE POLICE MAY OBJECT TO AN APPLICANT, AND IF SO THE LICENSING COURT WILL NOT GRANT A LICENCE UNLESS IT IS SATISFIED THAT THE MONEY LENDER IS A FIT AND PROPER PERSON- THE MAXIMUM PENALTY FOR CARRYING ON A MONEY LENDING BUSINESS WITHOUT A LICENCE IS A FINE OF $100 000 AND TWO YEARS IMPRISONMENT.
* MONEY LENDERS MUST PROVIDE A WRITTEN LOAN
AGREEMENT PRIOR TO ADVANCING ANY MONEY THE AGREEMENT MUST CONTAIN ALL THE DETAILS OF THE LOAN- IF MONEY IS ADVANCED BEFORE THE BORROWER SIGNS THE AGREEMENT THE LOAN IS NOT ENFORCEABLE- FAILURE TO PROVIDE A PROPER WRITTEN AGREEMENT IS AN OFFENCE CARRYING A MAXIMUM PENALTY OF $100 000 OR TWO YEARS IMPRISONMENT.
A BORROWERS ARE
AL