10 Pinoy alleged loan sharks arrested in Rome

At least 10 Filipinos were arrested in Rome over alleged illegal loans involving high interest rates, radio dzBB reported on Thursday.

The 10 Filipinos reportedly charged as much as 80 percent interest for the loans, radio dzBB reported.

However, the report also said Rome authorities are having a hard time building a case against the arrested Filipinos because the victims were not willing to talk.

The investigation showed most of the victims in the loans were Filipinos who were "scared" and would not testify against the suspects.

Embassy advisory

Meanwhile, the Philippine Embassy on Thursday advised Filipinos in Italy that lending or borrowing money at any interest rate, without the authority from the Italian government, is prohibited in Italy.

The embassy said this criminal offense called “usury” is colloquially known in the Philippines as “5-6.”

Unlike in the Philippines where usury has been decriminalized, usury remains a crime in Italy, the embassy noted.

"Under the Italian penal system, any money lending activity performed by “unauthorized” individuals and institutions is considered a crime.  Italy only authorizes banks and registered financial institutions to conduct legitimate lending/loan transactions," the embassy said.

Under Italian law, it is considered usury to lend cash with the borrower signing a promissory note to pay installments where the total amount is greater than the actual amount of cash borrowed.

"This practice comes in different forms, and sometimes the undertakings are for payment of installments for appliances, furniture, or other items instead of cash," the embassy explained.

The embassy also reminded Filipinos not to use their Philippine passports as guarantees for loans because this is against Philippine law. 

Under the Philippine passport law, the passport "remains at all times the property of the Government, the holder being a mere possessor thereof as long as it is valid and the same may not be surrendered to any person or entity other than the government or its representative," the embassy said. - VVP, GMA News