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Under the Money Lenders Ordinance, anyone wishing to carry on business
as a money lender must apply to a licensing court for a licence. The ordinance
does not apply to authorised institutions under the Banking Ordinance.
Licence applications are, initially, submitted to
the Registrar of Companies as Registrar of Money Lenders. A copy is also
sent to the Commissioner of Police who may object to the application.
The application is advertised, and any member of the public who has an
interest in the matter has the right to object. During the year, 774 applications
were received. Altogether, a total of 711 licences were granted, involving
both new applications and outstanding applications brought forward from
the previous year. At year-end, there were 775 licensed money lenders,
including those whose applications for renewing their licences had yet
to be approved.
The ordinance provides penalties for offences such
as carrying on an unlicensed money-lending business. It also provides
that any loan made by an unlicensed money lender shall not be recoverable
by court action. With certain exceptions (primarily authorised institutions
under the Banking Ordinance), any person, whether a licensed money lender
or not, who lends or offers to lend money at an interest rate exceeding
60 per cent per annum commits an offence. Any agreement for the repayment
of any such loan, or security given in respect of such loan is unenforceable. |
