5-6 loan sharks face warrant-less arrest, DOJ warns

Justice Secretary Vitaliano Aguirre II on Tuesday warned "5-6" operators, or those who lend cash at a hefty 20-percent interest a month, that they could be arrested any time even without a warrant.

"Pwedeng hulihin ang mga iyan. They are operating without permit or license...They could be arrested without any warrant because when they are doing that, they are committing a crime," Aguirre said in a news conference.

Aguirre echoed the statement of Agriculture Secretary Manny Piñol, who disclosed in his Facebook account that President Rodrigo Duterte, during the Cabinet meeting on Monday, moved for the arrest and deportation of foreigners involved in the usurious "5-6" money lending scheme.  

During the campaign, Duterte talked about the experience of common folk who fall prey to loan sharks especially Indian citizens, who allegedly sell appliances and other items to the borrower on top of the cash loan.

To address the usurious lending scheme, the Department of Trade and Industry said that it would implement a P1-billion micro-lending program for small and medium enterprises (SMEs), which makes up more than 90 percent of the country's businesses.

The soft loans to be extended to businessmen will charge 20 percent interest every year. —NB, GMA News