Popular Post webfact Posted June 13, 2022 Popular Post Share Posted June 13, 2022 file photo for reference only by Michael Bridge How many times do we read in the media that Police have arrested nine people during raids on premises believed used for illegal app-based loansharking in Bangkok and Chon Buri on Thursday morning. Six of the suspects are Thai and the other three are Chinese nationals. The pandemic has exaggerated the situation with many struggling just to cover basic monthly expenses. The University of Thai Chamber of Commerce (UTCC) recently revealed that the slowing economy has triggered a surge in household debt of 7.4 percent this year. The university's latest survey of 1,201 respondents during 11 to 23 November found that household debt averaged 340,053 baht (US$11,248) per household, compared with a year earlierat 316,623 baht (US$10,473), which was up 5.8 percent from November 2017. 40.8% of debt is underground loans One of the key findings, however, was that while some 59.2 percent of the debt was formal debt borrowed from legitimate financial institutions, 40.8 percent was what was considered underground debt, meaning debt owed to loan sharks. Loan sharks is a major problem in Thailand – as it is in many other places around the globe. Back in September 2018, it was reported that the then-military government – through its efforts to help those who had fallen victim to loan sharks – had succeeded in returning land and assets worth 3.25 billion baht (US$107.5 million) to borrowers in the Northeast. You may say it doesn’t affect the expat community, but how many expats have had girlfriends’ partners even Thai wife’s pleading to help as the loan shark is threatening them. The Thais often refer them to the mafia. Loan sharks may use intimidation and force if you don't pay back the loan, which authorised lenders would never do. Your loan never gets paid off Once loan sharks get you to borrow money once, they are likely to charge such high interest rates you won't ever repay. Any lender licensed or unlicensed, who harasses you is breaking the law. Officially you should report any loan shark to your local your local Trading Standards office and to the police if the loan shark threatens you or uses violence. However, the majority are too scared to make a complaint as the loan sharks are well connected in the community. Loan shark interest rates are extremely high, sometimes up to 300-400% interest on the loan. file photo for reference only Vietnam has the same problem This week, Vietnam’s Prime Minister Pham Minh Chinh has asked the central bank and the Public Security Ministry to protect workers from loan sharks. An official with the trade union of New Apparel Far Eastern Vietnam Co., Ltd. in Binh Phuoc, said black-market lending was a critical issue facing many workers. She said that in recent times, many workers have been mired in financial difficulties due to the pandemic, but, unable to get loans from banks, they’ve had no choice but to turn to loan sharks. She said that in recent times, many workers have been mired in financial difficulties due to the pandemic, but, unable to get loans from banks, they’ve had no choice but to turn to loan sharks. In the past three years, the Vietnamese ministry has overseen more than 2,700 cases with 5,000 people involved and prosecuted 2,000 cases with 4,000 defendants. Of those cases, workers are victims in more than 1,000 cases. Some are calling for banks to take responsibility when workers must turn to loan sharks and cannot access the official sources. There the central bank will collaborate with the Vietnam General Confederation of Labor to make sure that workers with legitimate needs can get access to the loan package. Thailand’s slowing economy does not help matters Thailand’s slowing economy may further exasperate issues of inequality and, in effect, the problem of loan sharks. As Thanavath Phonvichai, vice-president for research at the UTCC was quoted as saying, the slowing economy has curbed people's income, prompting them to rely more on loans for daily spending. "The government should produce more stimulus measures to accelerate recovery as soon as possible. If the economic recovery fails to manifest by then, a surge in household debt is anticipated next year," he said. With rising prices, unfortunately, debt is likely to continue to rise and the loan sharks will continue to be in demand. -- © Copyright ASEAN NOW 2022-06-14 - Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here. Easiest way to own or rent a car in Thailand - click here to find out more! Get your business in front of millions of customers who read ASEAN NOW with an interest in Thailand every month - email [email protected] for more information 3 1 2 Link to comment Share on other sites More sharing options...
Popular Post RandiRona Posted June 13, 2022 Popular Post Share Posted June 13, 2022 And who is enabling them?? You would think there are laws for this kind of predatory lending or ways for people to take debt safely. Open Thailand and let then earn their living. Things are going to go a lot worse with inflation and looming recession. 7 2 Link to comment Share on other sites More sharing options...
RichardColeman Posted June 13, 2022 Share Posted June 13, 2022 2 hours ago, webfact said: The university's latest survey of 1,201 respondents during 11 to 23 November found that household debt averaged 340,053 baht (US$11,248) per household, compared with a year earlierat 316,623 baht (US$10,473), which was up 5.8 percent from November 2017. If that debt does not include mortgages then that figure is absolutely outstandingly bad. In a country with a wage of say 15,000 a month a debt of $11,248 will never get paid off - if it does include mortgages then it seems quite reasonable to me. 1 Link to comment Share on other sites More sharing options...
Popular Post itsari Posted June 13, 2022 Popular Post Share Posted June 13, 2022 I have business cards from illegal loan suppliers thrown at my house like confetti twice a day . The police must be involved with the illegal loans for that to happen . 14 1 Link to comment Share on other sites More sharing options...
Popular Post Excel Posted June 13, 2022 Popular Post Share Posted June 13, 2022 15 minutes ago, itsari said: The police must be involved with the illegal loans for that to happen . Of course I suspect they are and provide protection to the big ones. I have no doubt that the RTP are up to their necks in it like most things. 13 Link to comment Share on other sites More sharing options...
Popular Post hotchilli Posted June 13, 2022 Popular Post Share Posted June 13, 2022 3 hours ago, webfact said: Officially you should report any loan shark to your local your local Trading Standards office and to the police if the loan shark threatens you or uses violence A local loan shark in our Moo Baan wears a brown uniform to work... 8 2 9 Link to comment Share on other sites More sharing options...
Popular Post Lacessit Posted June 13, 2022 Popular Post Share Posted June 13, 2022 My GF has been left in no doubt if she borrows money, legally or with a loan shark, I will not be repaying the debt, and it's the end of the relationship. 13 Link to comment Share on other sites More sharing options...
Sydebolle Posted June 13, 2022 Share Posted June 13, 2022 It is in the education. Do not spend money you do not have, if you need a loan for a bigger investment like a house, then see a bank. Latter is charging you also a fortune and takes a collateral double the value of the loan reason but still better than the gentlemen and ladies with golden rings, amulets and huge handbags. 2 Link to comment Share on other sites More sharing options...
Popular Post vandeventer Posted June 14, 2022 Popular Post Share Posted June 14, 2022 15 minutes ago, hotchilli said: A local loan shark in our Moo Baan wears a brown uniform to work... These loan sharks are everywhere and it's been going on since man lived in caves. They always get their money back as they hold your green book on your car or bike. I went to the bank the other day to get a credit card and they said I have to put 50,000 baht in the account that I can't touch before I can get a card. So as I said the loan sharks are everywhere. 6 2 Link to comment Share on other sites More sharing options...
Robert Tyrrell Posted June 14, 2022 Share Posted June 14, 2022 Good Morning, who’s fault is that Thailand !!?? When you wake up look in the mirror and you will find your answer ???? slow roll out of Covid Protocols, Still a non robust covid testing strategy, The Thai Baht being falsely manipulated over the last almost 3 years or longer , Dual Pricing especially in the middle of a pandemic and list goes on ————- ???? 2 1 Link to comment Share on other sites More sharing options...
Popular Post inThailand Posted June 14, 2022 Popular Post Share Posted June 14, 2022 When Uni graduates here do not even know what interest rates are, loans sharks have a field day with the under educated or uneducated. 11 Link to comment Share on other sites More sharing options...
DUNROAMIN Posted June 14, 2022 Share Posted June 14, 2022 loan sharks have been rife across Thailand for decades. They prey on bad times to rip people off of their belongings. 1 Link to comment Share on other sites More sharing options...
Popular Post AhFarangJa Posted June 14, 2022 Popular Post Share Posted June 14, 2022 I have found that it is not just the economy that drives loan sharking. Gambling addiction is a big culprit too. I personally know at least three ladies in Hua Hin, over the past eight years or so that lost everything to sharks. Unfortunately. the Farang partners were unaware until the house, car, motorbike, or bar was taken. One lady recently did a runner owing 7.1 Million Baht. All the while she was going round the bars to see friends buying drinks left, right, and centre, pretending all was well with the world...........Saving Face...... 6 Link to comment Share on other sites More sharing options...
Gottfrid Posted June 14, 2022 Share Posted June 14, 2022 4 hours ago, webfact said: file photo for reference only by Michael Bridge How many times do we read in the media that Police have arrested nine people during raids on premises believed used for illegal app-based loansharking in Bangkok and Chon Buri on Thursday morning. Six of the suspects are Thai and the other three are Chinese nationals. The pandemic has exaggerated the situation with many struggling just to cover basic monthly expenses. The University of Thai Chamber of Commerce (UTCC) recently revealed that the slowing economy has triggered a surge in household debt of 7.4 percent this year. The university's latest survey of 1,201 respondents during 11 to 23 November found that household debt averaged 340,053 baht (US$11,248) per household, compared with a year earlierat 316,623 baht (US$10,473), which was up 5.8 percent from November 2017. 40.8% of debt is underground loans One of the key findings, however, was that while some 59.2 percent of the debt was formal debt borrowed from legitimate financial institutions, 40.8 percent was what was considered underground debt, meaning debt owed to loan sharks. Loan sharks is a major problem in Thailand – as it is in many other places around the globe. Back in September 2018, it was reported that the then-military government – through its efforts to help those who had fallen victim to loan sharks – had succeeded in returning land and assets worth 3.25 billion baht (US$107.5 million) to borrowers in the Northeast. You may say it doesn’t affect the expat community, but how many expats have had girlfriends’ partners even Thai wife’s pleading to help as the loan shark is threatening them. The Thais often refer them to the mafia. Loan sharks may use intimidation and force if you don't pay back the loan, which authorised lenders would never do. Your loan never gets paid off Once loan sharks get you to borrow money once, they are likely to charge such high interest rates you won't ever repay. Any lender licensed or unlicensed, who harasses you is breaking the law. Officially you should report any loan shark to your local your local Trading Standards office and to the police if the loan shark threatens you or uses violence. However, the majority are too scared to make a complaint as the loan sharks are well connected in the community. Loan shark interest rates are extremely high, sometimes up to 300-400% interest on the loan. file photo for reference only Maybe, they should at least chose a photo from the country in question 1 1 Link to comment Share on other sites More sharing options...
dkg224 Posted June 14, 2022 Share Posted June 14, 2022 The local village loanshark in my girlfriends village in Buriram just finished building a brand new 2 story house. I was up there last week playing snooker at his house in the lower level snooker room. just about everyone in her village has or is currently borrowing money. My gfs cousin borrowed 10,000 to, yes buy a iPhone and hasn’t paid any back in 6 months. She now owes him like 35-40k and she makes 9k a month working Link to comment Share on other sites More sharing options...
sanuk711 Posted June 14, 2022 Share Posted June 14, 2022 18 minutes ago, Gottfrid said: Maybe, they should at least chose a photo from the country in question Does that suit you better Gottfrid.................... 1 1 Link to comment Share on other sites More sharing options...
Popular Post Orinoco Posted June 14, 2022 Popular Post Share Posted June 14, 2022 A pretty nasty element of poverty in Thailand. Some have no choice but to use these vampire's. 4 Link to comment Share on other sites More sharing options...
Popular Post 300sd Posted June 14, 2022 Popular Post Share Posted June 14, 2022 13 minutes ago, Orinoco said: A pretty nasty element of poverty in Thailand. Some have no choice but to use these vampire's. Couldn't agree more. These scum are the bottom feeders and deserve a bullet. Some Thais are so desperate that they have no choice. There are a million valid reasons for this desperation. The banks will not help and this is part of the problem. Thais are forced to pay 10% a month for these loans or the scum keep their rice land, etc. It's sick. 3 Link to comment Share on other sites More sharing options...
fvw53 Posted June 14, 2022 Share Posted June 14, 2022 Are the co-owners of a condominium also loan sharks? I live in a condominium where too many co-owners fail to pay on time their common fees but when the Juristic Person Manager finally goes to court (as is his or her legal duty) the judge considers the interests (penalties) of 12% and 20% allowed by the Thai Condominium Act Section 18/1 as interests imposed by a loan shark. The allowed penalties are reduced to 5% without consideration for the fact that the condominium degrades because lack of money for maintenance. QUOTE Section 18/1 In the case where a joint owner fails to make payments set forth under Section 18 with the prescribed time, such joint owner shall pay surcharge at the rate not exceeding twelve percent (12%) per year of the amount unpaid without compound interest charging provided, however, that this shall be in accordance with the requirements set forth under the Bylaws. A joint owner with an amount in arrears under Section 18 from six months and upwards shall pay surcharge at the rate not exceeding twenty percents (20%) per year and may be suspended from receiving common services or using common property as set forth under the By-laws including the non-existence of the right to vote in the General Meeting. UNQUOTE 2 Link to comment Share on other sites More sharing options...
Iron Tongue Posted June 14, 2022 Share Posted June 14, 2022 Oh yes, loan sharks are terrible! -says people who come from countries with banks that charge 29% interest rates on credit card debt + late fees... Loan sharks are part of local society, accept it or move on because things will never change, especially for the lower income populations, who also want iPhones and automobiles, and a bit of flash, and which the only way to get ahead is if they actually won at gambling. Nowadays, with Covid having crushed the economy, even people who never considered loan sharks before, must pay bills, or keep sending money to their parents. Loan sharks have a great racket, they make money on the biweekly interest, which is what most can afford to repay while the principal is never paid-down. 1 Link to comment Share on other sites More sharing options...
Bohemianfish Posted June 14, 2022 Share Posted June 14, 2022 This is really too bad. To know so many people around you are so deep in debt, particularly if you are doing okay. I guess the trick is to be discreet if carrying a nice phone and be low-key. Link to comment Share on other sites More sharing options...
fxe1200 Posted June 14, 2022 Share Posted June 14, 2022 2 hours ago, dkg224 said: The local village loanshark in my girlfriends village in Buriram just finished building a brand new 2 story house. I was up there last week playing snooker at his house in the lower level snooker room. just about everyone in her village has or is currently borrowing money. My gfs cousin borrowed 10,000 to, yes buy a iPhone and hasn’t paid any back in 6 months. She now owes him like 35-40k and she makes 9k a month working The maximum interest rate for loans in Thailand is 15%. Contracts citing a higher interest rate are by law automatically void. If you cannot calculate interest, just use this tool: https://vindeep.com/Calculators/emi-interest-rate-calculator.aspx But I assume, that even the use of this calculator is too much to ask for. Link to comment Share on other sites More sharing options...
JimTripper Posted June 14, 2022 Share Posted June 14, 2022 Can they be paid off with boom boom, just deducting a set amount each time? Link to comment Share on other sites More sharing options...
Popular Post Excel Posted June 14, 2022 Popular Post Share Posted June 14, 2022 4 minutes ago, fxe1200 said: The maximum interest rate for loans in Thailand is 15%. Contracts citing a higher interest rate are by law automatically void. If you cannot calculate interest, just use this tool: https://vindeep.com/Calculators/emi-interest-rate-calculator.aspx But I assume, that even the use of this calculator is too much to ask for. Difficult to use a calculator with your hands smashed up perhaps 2 1 Link to comment Share on other sites More sharing options...
Popular Post shackleton Posted June 14, 2022 Popular Post Share Posted June 14, 2022 I am afraid its a way of life here in Thailand Loan sharks are here to stay people will always need to borrow money They won't or can't get from the bank so not to many options open for them And as already mentioned these money lenders have friends in high places 4 Link to comment Share on other sites More sharing options...
tomacht8 Posted June 14, 2022 Share Posted June 14, 2022 (edited) A causal problem is that many do not master the dynamic interest calculation. If this were taught clearly in schools, fewer people would fall for the money sharks. Motorcycle Honda Click new price cash 55000 baht or 10000 baht down and 36 months 2500 baht. Many Thais cannot calculate the static and effective interest rate. Then it's easy to rip people off. Edited June 14, 2022 by tomacht8 Link to comment Share on other sites More sharing options...
Lacessit Posted June 14, 2022 Share Posted June 14, 2022 3 hours ago, inThailand said: When Uni graduates here do not even know what interest rates are, loans sharks have a field day with the under educated or uneducated. I play a little game with 7/11 staff, while they are using calculators to work out how much change I should get, I beat them to it by adding up the items in my head as I take them off the shelves, then telling them the correct change for my 1000 baht note when I am at the checkout. Some of the looks I get are priceless. 2 Link to comment Share on other sites More sharing options...
Lacessit Posted June 14, 2022 Share Posted June 14, 2022 4 hours ago, Sydebolle said: It is in the education. Do not spend money you do not have, if you need a loan for a bigger investment like a house, then see a bank. Latter is charging you also a fortune and takes a collateral double the value of the loan reason but still better than the gentlemen and ladies with golden rings, amulets and huge handbags. AFAIK there seems to be no education here about the difference between an appreciating and depreciating asset. 1 Link to comment Share on other sites More sharing options...
Popular Post James105 Posted June 14, 2022 Popular Post Share Posted June 14, 2022 9 minutes ago, Lacessit said: I play a little game with 7/11 staff, while they are using calculators to work out how much change I should get, I beat them to it by adding up the items in my head as I take them off the shelves, then telling them the correct change for my 1000 baht note when I am at the checkout. Some of the looks I get are priceless. I remember a time when I also used to brag about my ability to do subtraction. I was 5 years old and my parents were very proud of this ability. 3 Link to comment Share on other sites More sharing options...
Popular Post spidermike007 Posted June 14, 2022 Popular Post Share Posted June 14, 2022 One of the reasons why these loan sharks thrive, is the ridiculously high standards the Thai banks have, for the issuance of loans. I am not sure I have ever seen such difficult and conservative banks. It is likely the army and the police are heavily involved in this illicit trade. One would have to be truly desperate to borrow money from these creeps. It is an indication of just how decimated the local economy is, after 27 months of idiotic PASS (Prayuth/Anutin style sabotage) and extreme malfeasance. 3 Link to comment Share on other sites More sharing options...
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