XN000022-1980-06-25 — Page 16

WEDNESDAY, JUNE 25, 1980

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MR LI NOTED THAT WHILE IT MAY BE ARGUED THAT THIS TWO TIER RATE OF INTEREST IS ON THE HIGH SIDE, THE UNOFFICIALS TOOK THE VIEW THAT THE RATES ARE APPROPRIATE AT THIS PARTICULAR POINT IN TIME, AND WOULD ALLOW SUFFICIENT MARGIN FOR THE REPUTABLE MONEY LENDER TO MEET A GENUINE SOCIAL NEED.

ON THE LICENSING OF MONEY LENDERS, MR LI ASKED FOR AN ASSURANCE FROM THE GOVERNMENT THAT A SIMPLER PROCEDURE FOR THE RENEWAL OF LICENCES SHOULD BE DEVISED TO AVOID UNNECESSARY DELAY FOR THE GENUINE APPLICANT, SINCE THE LICENSING SYSTEM PROPOSED IN THE BILL IS ALREADY VERY COMPREHENSIVE AND TIME-CONSUMING.

MR LI FURTHER POINTED OUT THAT, TO DISCOURAGE MONEY LENDERS FROM ENTERING FALSE PARTICULARS IN THE LOAN AGREEMENT RELATING TO THE CAPITAL SUM OR THE EFFECTIVE RATE OF INTEREST, THE ATTORNEY GENERAL HAD ASSURED THAT FALSIFICATION OF PARTICULARS WOULD BE A CRIMINAL OFFENCE UNDER THE BILL.

THE UNOFFICIAL MEMBERS HAVE ALSO GIVEN CAREFUL CONSIDERATION TO THE POSITION OF UNINCORPORATED BUSINESSES WHICH MAKE COMMERCIAL LOANS IN THE COURSE OF THEIR NORMAL TRADING, ALTHOUGH MONEY LENDING AS SUCH IS NOT THEIR MAIN ACTIVITY.

THEY THOUGHT THAT THERE SHOULD BE A PROVISION FOR THIS TYPE OF TRANSACTION TO CONTINUE AND THE BILL WAS ACCORDINGLY AMENDED.

TWO OTHER UNOFFICIAL MEMBERS SPOKE ON THE BILL.

THE HON PETER C. WONG AGREED THAT THE PROPOSED LEGISLATION WOULD MAKE IT DIFFICULT FOR LOAN SHARKS TO OPERATE WITH IMPUNITY WITHIN THE FRAMEWORK OF THE LAW BUT EXPRESSED RESERVATIONS AS TO ITS EFFECTIVENESS IN STAMPING OUT LOANSHARKING ALTOGETHER, PARTICULARLY WHERE TRIADS ARE INVOLVED.

HE SAID THE BILL IS USEFUL ONLY IF DISPUTES ARE BROUGHT BEFORE COURT, BUT IN MANY CASES, THEY ARE NOT.

+LOAN SHARKS RUN BY TRIADS WILL CONTINUE, AS THEY DO NOW, TO RESORT TO ILLEGAL MEANS TO EXTRACT REPAYMENT AND THIS BILL WILL NOT MATERIALLY ASSIST THE MARRIED WOMAN, REFERRED TO BY THE ATTORNEY GENERAL, WHO WAS DRIVEN TO PROSTITUTION IN A DESPERATE ATTEMPT TO REPAY WHAT HER HUSBAND OWED,+ MR WONG SAID.

+FOR OBVIOUS REASONS, SUCH PEOPLE ARE NOT EAGER TO SEEK PROTECTION OF THE LAW.

HE SUGGESTED THAT GREATER VIGILANCE ON THE PART OF THE LAW ENFORCEMENT AGENCIES AND BETTER PUBLIC RELATION CAMPAIGNS TO ENCOURAGE VICTIMS TO REPORT CRIMINAL ACTIVITIES MIGHT IN TIME REDUCE THE MENACE POSED BY TRIADS.

MR WONG ALSO FELT THAT THE PROPOSED TWO-TIER INTEREST RATE SYSTEM - 48 PER CENT AND 60 PER CENT - MAY SEEM TO BE ARBITRARY.