A bar owner in Pattaya reported a violent debt-collecting gang to the local police after facing harassment and threats from 14 different loan providers. The 31 year old woman was forced to borrow money from various lenders for financial troubles, accumulating around 800,000 baht (US$23,100) in debt, with a daily interest payment of 30,000 baht (US$870).

 

The bar owner, Daranee (last name withheld), revealed her struggles and fear of illegal moneylenders. Initially, she was lured into borrowing money through flyers left at her establishment’s front door. However, as time went on, she found herself unable to make the interest payments and resorted to taking loans from other sources to make ends meet.

 

The situation escalated two weeks ago when she couldn’t find the money to pay the daily interest. The debt collectors sent people to her bar and forced female employees to undress and entice customers to earn more income for debt repayment. Some collectors also called and threatened to harm her if she failed to pay her dues.

 

by Nattapong Westwood

Top Photo by Facebook

 

Full story: https://thethaiger.com/news/pattaya/pattaya-bar-owner-faces-loan-shark-threats-forcing-staff-to-undress-for-debt-money

 

-- © Copyright Thaiger 2023-05-30

 

- 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.

 

The most versatile and flexible rental investment and holiday home solution in Thailand - click for more information.

14 minutes ago, webfact said:

Initially, she was lured into borrowing money through flyers left at her establishment’s front door.

The adverts don't force you to borrow money.

28 minutes ago, webfact said:

800,000 baht (US$23,100) in debt, with a daily interest payment of 30,000 baht (US$870).

this is actually real ? the monthly interest is 900k. hahahah o man i love being human. 

"after facing harassment and threats from 14 different loan providers. The 31 year old woman was forced to borrow money from various lenders" 

 

It was up to her to use loan sharks. And 14... And now she does not want to pay it back. Poor loan sharks. They should go to the police and complain. 

 

Edited May 30, 20233 yr by Mickeymaus

silly women for borrowing from 14 others to pay the loan shark ....

The woman is an idiot. 

simples.

2 minutes ago, steven100 said:

silly women for borrowing from 14 others to pay the loan shark ....

For some folks when you get in deep you just keep getting in deeper as there is no way up and out.  Digging a hole is what she did, and it only got deeper.  Sometimes one just needs to fold and close-up and one day restart.  Getting in over your head is never a good idea.

It's unbelievable that anyone would borrow from these low life creatures. The sad part is that they do because they are desperate and have to have it no matter what. Perhaps they gamble it away or their baby is sick in hospital, who knows why? I blame the system, poor education, and the banks for not doing a better job for these people. The loan sharks need to be laid to rest. I hate that scum.

The interest rates are just mental.....in our village they are 3% per month.....people only tend to borrow small amounts, but even so!!!!

 

The loan sharks should have done a credit report search on her.  

Edited May 30, 20233 yr by In Full Agreement

21 minutes ago, Will B Good said:

The interest rates are just mental.....in our village they are 3% per month.....people only tend to borrow small amounts, but even so!!!!

Yes, it's crazy. That is 36% in usual used rates (2 times the 18% max legal, correct me if I'm wrong)... I sign whenever for 36% per annum return. But not when stealing it from poor people.

 

As said, so sad people cannot do maths before borrowing. Or just save upfront, makes life so easier. Education I guess.

 

 

1 hour ago, Will B Good said:

The interest rates are just mental.....in our village they are 3% per month.....people only tend to borrow small amounts, but even so!!!!

In our village there is also a daily rate. Borrow 100 bht today and pay back between 130 and 150 bht tomorrow......insane.

The manager of the apartment building I used to live in loaned out small (10K or less) amounts at 10% interest per month.  I was never a customer, but I knew a couple people who were.

 

Another friend of a friend owed about 300,000 and was paying 30K per month.  She had a good job and an American boyfriend, but was struggling to make ends meet and had no prospect of ever paying her debt off.

I think that amounts to about a 1,400% annual rate of interest. That would have to break some records. Best to let the business go under, rather than borrowing money at that kind of rate. How did she ever think she was going to be able to pay back the money?

Very common to see the lending without collateral with rates that they have zero chance of paying back.

 

Mix of desperation and stupidity verging on mental illness to borrow in those situations and tends to go hand in hand with gambling, borrow to pay interest, not enough so gamble what you have.

 

A lot of people in this situation really need professional help and loan sharking and gambling should be high on new governments agenda but do not appear to be there. 

3 hours ago, webfact said:

However, as time went on, she found herself unable to make the interest payments and resorted to taking loans from other sources to make ends meet.

As if that would solve anything... 

4 hours ago, ThailandRyan said:

For some folks when you get in deep you just keep getting in deeper as there is no way up and out.  Digging a hole is what she did, and it only got deeper.  Sometimes one just needs to fold and close-up and one day restart.  Getting in over your head is never a good idea.

Back in the mid 1990s the loan shark rate was 20 baht per 1,000 baht borrowed, per day, going up every day the debt is unpaid.

4 hours ago, Stocky said:

The adverts don't force you to borrow money.

No, they entice........

4 hours ago, stoner said:

5 hours ago, webfact said:

800,000 baht (US$23,100) in debt, with a daily interest payment of 30,000 baht (US$870).

this is actually real ? the monthly interest is 900k. hahahah o man i love being

A few times someone has told me their loan amount and I've asked what interest rate they're paying, when I'm met with blank looks. I ask the monthly repayment and can mostly do the calculation in my head which reveals a ridiculous interest rate. They simply have no idea nor any simple arithmetic skills. 

2 hours ago, spidermike007 said:

How did she ever think...

They can't "think"

Banks only borrow you money if you have a guarantor. Having an outside bank.

You would be a guarantor? I wouldnt.

Long time ago, red a story on Thaivisaforum.

Daughter had loan, father was guarantor. Though daughter later had good job, she didnt pay off loan and father became the owner to pay. Nice, even own family you cant trust.

So you cant get money without a guarantor, but then there is ...the loan shark and you make the wrong decision. I believe "Big Joke" is still focused on this.

She has to go police and expose the criminals. Yeah hard, as it can blow up in your face. The things people do for money. 

 

5 hours ago, 300sd said:

It's unbelievable that anyone would borrow from these low life creatures. The sad part is that they do because they are desperate and have to have it no matter what. Perhaps they gamble it away or their baby is sick in hospital, who knows why? I blame the system, poor education, and the banks for not doing a better job for these people. The loan sharks need to be laid to rest. I hate that scum.

Some people who receive the loans do not think about the future , they don't think about paying the money back , they are just overjoyed with having a pocketful of money and how they are going to spend it and they cannot believe their luck when other people keep giving them money, ...................until they are 900 000 Baht in debt .

    The money lenders will have to make a public statement to show the results of not repaying debts to them and it may be in her interests to take out a life insurance policy

5 hours ago, Will B Good said:

The interest rates are just mental.....in our village they are 3% per month.....people only tend to borrow small amounts, but even so!!!!

This is on a different level at 3.75% per DAY.

5 hours ago, ThailandRyan said:

For some folks when you get in deep you just keep getting in deeper as there is no way up and out.  Digging a hole is what she did, and it only got deeper.  Sometimes one just needs to fold and close-up and one day restart.  Getting in over your head is never a good idea.

Same MO as a gambler.

1 hour ago, nchuckle said:

A few times someone has told me their loan amount and I've asked what interest rate they're paying, when I'm met with blank looks. I ask the monthly repayment and can mostly do the calculation in my head which reveals a ridiculous interest rate. They simply have no idea nor any simple arithmetic skills. 

 

Financial literacy appears to be an endangered species among a lot of the common folks here.

 

 

3 hours ago, Bangel72 said:

Very common to see the lending without collateral with rates that they have zero chance of paying back.

I once had a girlfriend whose parents were money-lenders. Both were Thai teachers in their day-jobs. The father had a handgun collection. If debtors couldn't pay loans back in time, this couple would go there, knock on the door, gun in hand, asking for the money back. - They also had a farm. One day I went there with them. The father pointed to a hill on the farm, asking me if I liked it. I said it looked nice. Later my then girlfriend translated, 'if I had said that I liked the hill, he would have given it to me'...

 

Edited May 30, 20233 yr by StayinThailand2much

6 hours ago, webfact said:

The debt collectors sent people to her bar and forced female employees to undress and entice customers to earn more income for debt repayment.

 

Did it work/help???  ????

Time for her to do a flyer.

'The interest rates are just mental.....in our village they are 3% per month...' 

 

That's a bargain! Here in the Philippines several companies advertise on-line loans. The interest rate is 14.7% a MONTH, plus an establishment fee. GF has relatives who regularly lend out at 10% a month. 

Edited May 30, 20233 yr by biggles45

7 hours ago, n00dle said:

The woman is an idiot. 

simples.

This type of behavior is common in small villages. 

 

I have seen several women in one small village rack up this kind of debt, and worse, actually.

 

Also, I was friends with a farang moneylender which gave such insight hearing about his many customers.