Indian nationals engaged in “5-6,” a usurious lending activity, can be arrested without warrant, Justice Secretary Vitaliano Aguirre II said Tuesday.
Legally speaking, Aguirre said the interest rates in the 5-6 lending activity is legal after the repeal of the Usury Law and the removal of interest ceilings.
However, Aguirre said operating a lending business requires permit and other requirements.
“They can be arrested for operating without any permit,” Aguirre said pointing out that there are stringent requirements that must be complied with before starting a lending business.
“They could be arrested without any warrant because when they are doing that (5-6), they are committing a crime,” the justice chief said.
The government will push for the implementation of the nationwide micro lending program to address the 5-6 lending business. CDG/rga