Sixteen Hong Kong loan sharks were arrested for allegedly running an illegal online money-lending racket in Thailand.

The gang were caught after cops and immigration officers raided the three-storey townhouse that served as their operations base in Pattaya, Chonburi on October 5.

Computers, laptops, cameras, a copying machine, 20 mobile phones, and various documents were seized by police at the site.

Major General Teerachai Chamnanmor, Commander-in-Chief of the Royal Thai Police Region 2, said: 'We have been tracking this gang since their office was in Bangkok. They have been roving around to avoid the police.

'They came here to escape capture by Hong Kong officials and because the cost of operation is less expensive here.'

The suspects allegedly confessed to targetting Chinese nationals in Hong Kong for their online loan services, charging eye-watering interest rates reaching up to 50 per cent.

They had reportedly chosen to operate in Thailand, where living and travel expenses were cheaper.

Police said the gang had been handling 'hundreds of millions' worth of Hong Kong dollars circulating among different clients, adding they flew into Thailand legally using tourist visas.

The loan sharks were detained at the Pattaya police station for running an unregistered business in the country.

Officers said they are set to be deported back to Hong Kong, now part of China.

Major General Kittanate Thananan Thavisin, Chonburi police chief, said: 'Thank you to everyone who helped with the investigation to successfully catch the suspects.

'Thailand is known for its tourism and warm hospitality. All of the reports have contributed to keeping the nation safe.'