bookrandom Chapter 627 The Right Order of Borrowing: There's No End to Debt
Chapter 627 The Right Order of Borrowing: There's No End to Debt
The underground order on Hong Kong Island had long been unified. After Hung Hing unified the underworld, Yip Ho-hin set his sights on the cancer of loan sharks. Previously, various gangs had been engaged in rampant private lending, with "predatory lending" involving compounding interest and violent debt collection occurring frequently. This not only disturbed the peace of the neighborhood but also damaged Hung Hing's reputation.
Now that there are no other gangs to hinder us, it's the perfect time for a thorough crackdown.
In the early morning, the Hung Hing triad meeting room was filled with leaders from various Hung Hing branches sitting on both sides of the long table.
Marry, dressed in a sharp black business suit, held a thick stack of "Hung Hing Loan Regulations" in her hands. She tapped the table lightly with her fingertips, the sound clear yet carrying an undeniable force.
"The reason I've gathered you all here today is to thoroughly regulate the lending business throughout Hong Kong. From now on, all lending operations in all branches must comply with this regulation. Predatory lending, interest-fueled debt collection, and violent debt collection are all strictly prohibited. Anyone who breaks the rules will be dealt with according to the gang's regulations!"
As soon as he finished speaking, Fat Biao from the Yau Ma Tei branch scratched his head and hesitated before speaking:
“Sister Marry, isn’t our job as a lender to make money from interest? If we lower the interest rate too much and can’t push too hard, what if we encounter people who default on their debts? There were a few people who borrowed money before and then disappeared. In the end, we had to go to their homes to get the money back.”
“Fat Biao, you’re wrong.” Marry pushed the regulations to the center of the table, each page clearly marked. “In the past, each branch fought its own battles, which led to chaos. Now that Hung Hing is unified, rules must be established. The interest rate is set at no more than four times that of the bank for the same period, which is not low and enough for everyone to make a profit; as for those who default on their debts, Hung Hing will mediate, and you don’t need to resort to violence.”
She turned to the core page of the regulations and read it aloud, word by word:
"First, the lending rate is uniform across Hong Kong, with a maximum of four times the bank's loan rate for the same period. No additional handling fees or service fees are allowed, and this must be clearly stated in the contract. Second, loans must be in the form of a formal written contract, specifying the amount, interest rate, repayment method, and term—all are indispensable. Two copies must be made, one for each party, and the contract must be filed with headquarters. Third, 'interest compounding' is strictly prohibited. For overdue payments, the penalty is capped at one-thousandth of the outstanding amount per day; no more than that is allowed. Fourth, collection efforts can only be conducted through in-person negotiation. Swearing, smashing property, and harassing family members are strictly prohibited. If negotiations fail, the matter must be reported to headquarters for mediation. Anyone who resorts to violence will have their branch's lending license suspended and will be fined!"
Ye Haoxuan overheard this as he led Daisy and Cola into the conference hall. He sat down at the head of the table and added:
“Now, Hung Hing is the only one on Hong Kong Island. Our reputation is the reputation of the entire underworld. In the past, loan sharks drove many people to bankruptcy. The neighbors cursed Hung Hing behind their backs. This is not what we want. Regulating lending is not only to leave a way for the neighbors to make a living, but also to ensure that the lending business can continue in the long run. A steady and sustainable approach is the right way.”
Daisy continued, "I've already coordinated with the bank and developed a standardized interest rate table and contract template, which I'll send to everyone later. Just fill them out accordingly. All loan records must be reported to headquarters. Cola and I will be responsible for supervision, and we'll conduct spot checks once a month. The branches must cooperate by providing ledgers; no concealment is allowed."
Cola also spoke up: "I will bring a mediation team to handle overdue disputes. If you encounter anyone defaulting on their debts, don't take action yourself, just report it to me. We will talk to the borrower. If we really can't reach an agreement, then we will take the formal legal route. Mr. Ye has already informed the police that they will cooperate as appropriate for compliant loan disputes."
Fei Biao hesitated, "Brother Cola, can this really be resolved through the law? Who ever dared to call the police before?"
“Things are different now.” Ye Haoxuan’s eyes darkened. “We follow the rules and don’t cross the line, so the police won’t cause trouble for no reason. On the contrary, if you still do what you used to do and someone gets into a murder case, not only will you be in trouble, but you will also implicate the entire Hung Hing. Can you bear the consequences?”
After these words were spoken, none of the branch leaders dared to utter another word.
They all knew Ye Haoxuan's methods; if he really broke the rules, he would show no mercy.
"It's good that you understand everything."
Seeing that no one objected, Marry continued, "Also, the 'loans that have already been issued need to be recalculated. Only the principal and legal interest will be collected. Any overcharged interest must be returned. If the loans have already driven people to ruin, the branch manager must personally go and apologize to make up for the losses. This matter must be completed within a week, and I will send someone to investigate."
After the meeting, each branch immediately sprang into action.
Marry stayed at headquarters to organize the loan records reported by the various branches;
Daisy and her team delivered contract templates and interest rate tables to each branch, providing hands-on guidance to the managers on how to fill them out.
Cola, along with the mediation team, began to handle the previous unresolved disputes.
The next morning, Cola led his men to Yau Ma Tei—a place previously notorious for its rampant loan sharking, where Fat Biao's gang had issued numerous predatory loans. They had barely arrived at the gang when they encountered Ah Ling, who had come seeking help.
Ah Ling's eyes were red and swollen, and she clutched a crumpled IOU in her hand:
"Brother Cola, please help me! I borrowed 100,000 yuan from Brother Fei Biao's gang to pay for my mother's medical treatment. In just three months, it has become 300,000 yuan. They still come to my door every day to curse me and say that if I don't pay back the money, they will take my sister to pay off the debt!"
Fei Biao stood to the side, looking somewhat embarrassed.
"Brother Cola, I was just about to deal with this, I haven't had time yet..."
"Deal with it now." Cola took the IOU, which stated a daily interest rate of 3%, clearly indicating a "premature loan." "According to the new rules, the legal interest on 100,000 yuan over three months is only a few thousand yuan. Have the finance department recalculate it. The extra 200,000 yuan must be returned to Ah Ling. The brothers who harassed her before also need to apologize to Ah Ling."
Fatty Biao dared not refute, and immediately sent someone to calculate the amount. Not long after, they returned with over 200,000 yuan in cash, which they handed to Ah Ling.
"Ah Ling, I'm sorry, we were wrong before. You can keep this money. I'll tear up the IOU. You can pay back the remaining principal and legal interest slowly."
Ah Ling took the money and burst into tears on the spot, thanking Kele and Fei Biao repeatedly.
Such scenes are constantly playing out in every corner of Hong Kong Island.
Many people driven to desperation by usurious loans have received refunds of the high interest rates and signed new, reasonable repayment contracts.
A week later, all the churches had finished dealing with the remaining issues.
Marry, Daisy, and Cola summarized their findings at headquarters:
“A total of more than 300 illegal loans were investigated in Hong Kong, more than HK$5 million in high interest was refunded, more than 200 contracts were renewed, and no new cases of violent debt collection were found.”
Daisy added, "Now all the lending businesses in each branch are operating according to the rules. Every day, many neighbors come to us to borrow money, mostly for emergencies, and the repayment rate is very high. We have also set up a complaint point at headquarters and opened a hotline for reporting, and so far we have not received a single complaint."
Cola said with a smile, "Now the neighbors have a different opinion of us. Before, they would avoid us when they saw us, but now many merchants take the initiative to greet us and say that if they have any emergency needs in the future, they can go to Hung Hing's legitimate lending services and feel at ease."
Ye Haoxuan looked at the report and nodded in satisfaction:
“Well done. Regulating lending is not about cutting off everyone’s source of income, but about ensuring that Hung Hing can stand firm in the long term. Now that we are the only one on Hong Kong Island, we need to not only make money, but also do good deeds and gain the recognition of the community. Only in this way can Hung Hing be as stable as Mount Tai.”
He paused, then added, "Follow-up supervision cannot be relaxed. Daisy and Cola must continue to keep an eye on things, and if any branch is found to be in violation, they should be dealt with seriously immediately. In addition, if we encounter borrowers who are truly in difficulty, such as those with a family member who is seriously ill or unemployed, we can appropriately extend the repayment period or introduce them to jobs in Hung Hing's businesses to help them through their difficulties."
“We understand,” the three replied in unison.
The setting sun streamed through the conference room windows, illuminating the "Hung Hing Loan Regulation Ordinance" on the table and the smiles on everyone's faces. The rampant usury had been thoroughly eradicated, Hung Hing's reputation was improving, and the underground order on Hong Kong Island was becoming increasingly stable.
Ye Haoxuan knew that this was only the first step in regulating the underworld, and there was much more to be done in the future. But as long as the word "rules" were upheld, the foundation of Hung Hing could be passed down from generation to generation, and the peaceful life he wanted would become more and more solid with each step of his efforts.