A local woman with a juice stand appeared very stressed out a couple of weeks ago.  Then she explained to me she had taken out a private loan for 10,000 for a family emergency.  The terms of the loan were that if she didn't pay in full after 10 or 20 days, then she pays 1% interest (100) per day until the loan is paid in full.  And that interest was due every 10 days.  So every 10 days, she made interest-only payment of 1000 baht.  she had paid some 6k in interest already.   I thought about her total avg monthly income, and I've come to the conclusion that she would never be able pay that loan off unless she borrowed again or somehow got the 10k from someone.   And the lender didn't seem incentivized in the slightest to reduce or waive any interest after covid-19 restrictions like curfew and real economic slowdown took place.

 

I thought those loan terms were insane.  But when you are really desperate, the temptation towards taking a deal like that becomes harder to resist for some people.  I wanted to know how pervasive these type of deals are.

Bad karma.......

 

Sadly, this is commonplace.  A more typical interest rate is 10% monthly with interest payment required monthly. The people that get into this can be stuck in this cycle for years.  

"Thai banking" to poor people. In Italy the same is called mafia loan.

 

A non symphatic way to make fast money and take over the control over poor peoples life.

 

It happends in many countries where there is many poor people, where the governments do not have social help programs to the poor.

7 hours ago, 4evermaat said:

Then she explained to me she had taken out a private loan for 10,000 for a family emergency.

She has accepted terms of the loan with that kind of deal and people do this because they have no collateral. 

She could try just paying 3,000 only a month and document it in some way to see if they will take her to court, and in the meantime save the 10,000.

Just had a stupid? idea. Not sure. I never dealt with loansharks and / or how they operate, but....

what if she loans the 10,000 from another loanshark and pays off the current one? That ways she gets another 10? 20? 30? days interest free loan. Use the 100 baht per day to pay off the new loan. Once the interest starts again with the new loanshark, loan from another one or the previous one.

Is this too simple of thinking? Am I missing something?

For 10 grand I'd offer her an interest free loan. I've done it in the past (with family) and actually got the money back.

 

Is she cute, is the juice good?

 

3 minutes ago, Crossy said:

For 10 grand I'd offer her an interest free loan. I've done it in the past (with family) and actually got the money back.

 

Is she cute, is the juice good?

 

yeah, get free juice every day for a year time. usually 20-30 baht. cost per year at 30 baht per day is 10,950 baht

 

 

10 hours ago, Kwasaki said:

She has accepted terms of the loan with that kind of deal and people do this because they have no collateral. 

She could try just paying 3,000 only a month and document it in some way to see if they will take her to court, and in the meantime save the 10,000.

A loan shark doesn't take you to court, they beat the crab out of you. Money lending by individuals isn't allowed to start with. 

2 hours ago, FritsSikkink said:

A loan shark doesn't take you to court, they beat the crab out of you. Money lending by individuals isn't allowed to start with. 

You've been watching too many movies.

 

 

3 hours ago, FritsSikkink said:

A loan shark doesn't take you to court, they beat the crab out of you. Money lending by individuals isn't allowed to start with. 

 

31 minutes ago, Kwasaki said:

You've been watching too many movies.

no. that's kinda real. threats include family and fingers. actual incudes vandalism and fire. 

Just now, jastheace said:

no. that's kinda real. threats include family and fingers. actual incudes vandalism and fire. 

The wife of a farang by us ran up big debts with a loan shark.  The poor old foreign husband copped it and got stabbed outside the front door late one night. He was in hospital for a while and ended up having his spleen, or something internal, removed. 

8 hours ago, Kwasaki said:

You've been watching too many movies.

You haven't got a clue about the subject.

13 hours ago, jastheace said:

 

 

 

no. that's kinda real. threats include family and fingers. actual incudes vandalism and fire. 

Where's your evidence of that my only experience was a person who was not able to pay a money lender was threaten with a gun, the police shot the money lender dead. 

So it ends up with the police.

5 hours ago, FritsSikkink said:

You haven't got a clue about the subject.

And your Thailand experience evidence is 007. ????

13 hours ago, KhaoNiaw said:

The wife of a farang by us ran up big debts with a loan shark.  The poor old foreign husband copped it and got stabbed outside the front door late one night. He was in hospital for a while and ended up having his spleen, or something internal, removed. 

That's sad they obviously didn't go about dealing with it correctly.

2 hours ago, Kwasaki said:

And your Thailand experience evidence is 007. ????

A lot more than yours.

2 hours ago, Kwasaki said:

Where's your evidence of that 

evidence? so I should've taken video and pictures to show you? 

Loan sharks have been around and will be around until the end of time.  

 

A loan shark just like any lending institute makes their money off the interest that you pay.

 

There are many loan sharks and they all come in different means.  

 

One of the biggest legal loan sharks in Canada used to be the pay day loan.

 

However, the real loan sharks if yo forfeit will collect.  My ex GF ran up a debt before I kicked her to the curb for stealing.  I got a visit form a few Thai gentleman and a thai friend had to take them through the house so that they could see she was no longer around and told them that she owed me money as well and that I was a poor farang.

 

In Canada they take what you have in your house if you have nothing then they will find ways to get the money.  

 

 

 

I remember a Patong bar girl going over what she called 'the chinese system' which was 5 for 4 (25%) monthly except her monthly was really 4 weekly.

 

Made the loan she took for a mobile phone into a ongoing payment forever plan. Tho I suppose back in 02 a mobile for a bar girl was a legit business investment.

On 4/22/2020 at 1:35 PM, Kwasaki said:

Where's your evidence of that my only experience was a person who was not able to pay a money lender was threaten with a gun, the police shot the money lender dead. 

So it ends up with the police.

If the police shot the money lender dead, it was either because he pulled a gun, or more likely, was competing with the "prefered" money lender. As a couple of guys said, illegal money lenders don't take you to court...they hurt you badly! Don't believe it, Kwasaki? OK, just take a loan yourself and stop paying! Please report back!!  ????????????

On 4/21/2020 at 7:44 PM, Kwasaki said:

You've been watching too many movies.

The 2 full face helmet collection guys on a bike.

 

Daughter of 70+ year old neighbour couldn't pay off a debt. This old lady was threatened and received a bruised face as a warning to her daughter.

 

Our police neighbour wasn't home one day. The collection guys handed one of our staff a brown envelope and asked them to pass it on to the cop. It was payment to operate in that police area. 

CNA has a series on loan sharks in Singapore and how they operated. Actually they had 20% interest per week there, and the first interest was already deducted, so if she borrowed 10,000 she would only get 8,000 and told the other 2,000 was interest for first week paid up-front. Main point was that these people could never get out of loan as they'd struggle to even cover interest, let alone repay that. It is now illegal in Singapore, and from what I remember, it's also illegal in Thailand.

4 minutes ago, Farma said:

The 2 full face helmet collection guys on a bike.

 

Daughter of 70+ year old neighbour couldn't pay off a debt. This old lady was threatened and received a bruised face as a warning to her daughter.

 

Our police neighbour wasn't home one day. The collection guys handed one of our staff a brown envelope and asked them to pass it on to the cop. It was payment to operate in that police area. 

Well flinging report it otherwise nothing gets done or are you a pussy like the guys in full face helmets hitting old ladies. 

Jesu some people live in some right <deleted> holes. 

@Kwasaki As others have said. You've got no idea.

42 minutes ago, donmuang37 said:

If the police shot the money lender dead, it was either because he pulled a gun, or more likely, was competing with the "prefered" money lender. As a couple of guys said, illegal money lenders don't take you to court...they hurt you badly! Don't believe it, Kwasaki? OK, just take a loan yourself and stop paying! Please report back!!  ????????????

 

Again so you know this OK.

You must live in some kind cesspit hole of a place, it doesn't happen the silly film like way you portray here where I live.

I lend money. 

1 minute ago, Farma said:

@Kwasaki As others have said. You've got no idea.

Like I keep saying if you live in cesspit places like why don't you do something about, OK don't bother if you live in  places like that you're scared. 

I took out 1,000,000 in loans before.  first time, bet it all on black.  won.  i won 5 straight times.  I had like 15 million plus.  Then I played the lottery, won another 10 million.  I bought two houses and made another 10 million.  

 

Then the loan collector showed up.  He saw my house and said I owe him 200 million.  I am a ninja, so that was the end of him.  But he was connected to the cartel in Mexico.  They kidnapped my cat.  I flew down there, got my cat, and stole their product.  Sold it for 100 million.

 

Then i got married in Thailand. lost it all in a month.  

1 hour ago, kingstonkid said:

will be around until the end of time. 

the end is near...

This I do know about.

Obviously court is out of the question.

But the loansharks are ruthless, dangerous & brutal

Enough said at this time but good chance you die