SME Care gave a loan of $500,000 to Ms Chan's company JASC in 2012, secured by a mortgage of two shops JASC owned and her personal guarantee.
JASC defaulted on the debt repayment, despite the interest rate having been subsequently reduced from 7 per cent to 5.2 per cent per month.
The mortgaged properties were sold but the proceeds were not sufficient to discharge the debt.
Ms Chan, being the guarantor, was asked to make good the amount owed, which had ballooned to $3.69 million by September 2017. The debt in question now stands at more than $4.15 million.
Wah lan eh...from $500K loan can now become $4m debt. This is legalised loan shark?