Myra was two weeks away from her salary date when she got a call from her family in the Philippines saying that her father was in the hospital due to a stroke. She needed to send money as soon as possible. However, lacking any savings and already in debt from a well-known, registered finance company, she turned to an illegal lending company she had seen on Facebook, one that promised quick cash if she paid the money back within two weeks.

“Parang legit naman ang Facebook page na nakita ko. Nakalagay sa post nila na mabilis at maasahan ang processing ng loan. Nagmessage ako sa FB nila, at binigyan ako ng WhatsApp number kung saan hiningi nila pangalan ko, HKID, proof of address nina amo, at ang aking visa,” [From their Facebook page, they seemed like a legitimate company. They had a post saying they offered fast and reliable loan processing. So, I sent a message on Facebook, and they gave me a WhatsApp number where I needed to send my full name, HKID, proof of address of my employer, and my visa,] says Myra, a migrant domestic worker (MDW) who has been working in Hong Kong for the past 5 years.

Many MDWs struggle to make ends meet, especially when faced with unexpected expenses back in their home countries. Their income is also fixed each month, and it is a breach of the MDW employment contract to find other work or sell goods or services on top of their monthly salary. As a result, there has been an uptick in investment scams and illegal money lending targeting vulnerable migrant workers.

“Humiram ako ng HKD 3,000, pero iyong binigay nila ay HKD 1,500, lang para daw sa handling fee at kailangan ko silang bayaran within 10 days. Problema lang, iyong pang-10 days naman ay tapat sa araw bago ako magsahod at hindi ko din day off, kaya nagmessage ako doon sa WhatsApp number ng kausap ko, tapos sabi nila kung one day late ang bayad ko, HKD 4,500 na daw ang babayaran ko! Grabe ang gulat ko kasi almost buong sahod ko na iyon,” [I borrowed HKD 3,000 from them, but they only gave HKD 1,500, as they said that was the handling fee and that I would have to pay it back within 10 days. But the problem was that the 10th date fell on the day before I received my salary. So I messaged them on WhatsApp, and they said that if I was one day late, I would have to pay back HKD 4,500! I was in shock because that is almost my whole salary,] exclaims Myra.

These loan sharks prey on people who are desperate for cash and are often unaware of the risks. While the legal annual interest rate cap for licensed money lenders in Hong Kong is 60%, loan sharks charge far more, sometimes reaching several thousand percent annually. They also impose hidden “handling fees” or “commissions”, meaning the borrower receives less than the agreed-upon loan amount, but must repay the full principal, plus interest on the entire amount.

“Buti nalang mabait ang amo ko at nakapag-advance ako ng sahod ko ng one day. Ibinayad ko kaagad yung HKD 3,000 doon sa account number na ibinigay. Inalok ako kaagad ng panibagong loan, pero tinanggihan ko, talagang nadala na ako,” [Good thing my employer is so nice – when I asked for my salary a day in advance, she gave it to me. I paid the HKD 3,000 to the lender’s bank account straight away. They then offered to loan me more money, but I said no. I really learned my lesson,] shares Myra.

While Myra’s story had a good ending, some migrant workers don’t make the payments on these loans and find themselves continually harassed by these loan sharks, sometimes even leading to their employers terminating their contracts, not to mention the emotional distress it can cause.