snoop1130 Posted September 6, 2023 Share Posted September 6, 2023 A 26 year old vendor found herself entangled in an online loan scam after losing her job and seeking funds for investment. Bee, from Nakhon Phanom’s Pla Pak district, expressed her ordeal through media outlets, warning society about the risks of falling prey to online loan scams. She initially borrowed 30,000 baht via an online application but was left with only 20,000 baht after the deduction of advanced interest. Despite repaying the first loan promptly, she fell into financial difficulties after her second loan, which led her to borrow from different online lenders over two to three months. Bee initially saw an opportunity to borrow money online via a Line application and decided to inquire about the details. After providing her identification card information, address, and mobile phone number, she was approved for her first loan of 30,000 baht. However, 10,000 baht was deducted as advanced interest, leaving her with only 20,000 baht. The terms required her to repay the full 30,000 baht in seven days, which she managed to do. Bee was drawn deeper into the online scam when she was approved for a second loan of 50,000 baht. Similar deductions were made, leaving her with 32,000 baht. She was required to repay the loan in seven days. However, she was unable to meet the repayment deadline due to business-related financial issues. Consequently, she decided to borrow from other online lenders to cover her previous loans, creating a vicious cycle as she was deep in the loan scam over the next two to three months. Unaware of the penalties for late repayment, including hefty fines and interest charges, Bee’s financial situation worsened. She borrowed from a total of 18 online lenders, accumulating a debt of 2.6 million baht. She was pressured to repay approximately 150,000 baht per day, a figure she could not meet. This led to various forms of threats and public shaming, prompting her to believe it was an organised online loan operation scam, reported KhaoSod. By Neill Fronde Caption: Picture courtesy of 3Plus News Full Story: https://thethaiger.com/news/national/26-year-old-thai-woman-falls-into-2-6-million-baht-debt-trap-due-to-online-loan-scams-2 -- The Thaiger 2023-09-06 - 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. Get our Daily Newsletter - Click HERE to subscribe 2 4 Link to comment Share on other sites More sharing options...
Popular Post StayinThailand2much Posted September 6, 2023 Popular Post Share Posted September 6, 2023 Probably no scams. The deduction of advanced interest by private lenders has been going on since before the online age, and in other countries too. The same is true for hefty penalties for late repayment. It's the borrower's fault that she kept borrowing more and more, without being able to pay back the debt in time. Also, borrowing from 18 lenders without being able to pay back? This wouldn't even be possible in other countries, where there's a central registry of loans and late repayments. Also, presuming that she initially borrowed, say, half a million, while earlier not being able to repay 32,000 baht in time, is just reckless. Probably just one of many such stories in Thailand... 1 1 3 1 Link to comment Share on other sites More sharing options...
Popular Post impulse Posted September 6, 2023 Popular Post Share Posted September 6, 2023 (edited) If there's any justice, a judge should wipe her slate clean and prosecute the people charging her 50% a week for interest. Sadly, she'd still have to leave town before a hit squad finds her, or 18 of them. Edited September 6, 2023 by impulse 2 1 1 Link to comment Share on other sites More sharing options...
Popular Post Eloquent pilgrim Posted September 6, 2023 Popular Post Share Posted September 6, 2023 The report does not make it clear who exactly it was that dragged her screaming in protest against her express wishes into taking out the loans. 3 1 1 3 Link to comment Share on other sites More sharing options...
Popular Post ExpatOilWorker Posted September 6, 2023 Popular Post Share Posted September 6, 2023 That is a whopping 143,464,837,400% annual interest rate. 1 2 Link to comment Share on other sites More sharing options...
Popular Post ExpatOilWorker Posted September 6, 2023 Popular Post Share Posted September 6, 2023 On 9/6/2023 at 8:14 PM, Eloquent pilgrim said: The report does not make it clear who exactly it was that dragged her screaming in protest against her express wishes into taking out the loans. Under Section 654 of Thailand's Civil code, the maximum annual interest rate on a loan is set at 15% per year. https://www.thaiexaminer.com/thai-news-foreigners/2022/03/06/call-the-police-on-loan-sharks-says-big-joke/#:~:text=Under Section 654 of Thailand's,%2C this rises to 5%. 2 3 2 1 Link to comment Share on other sites More sharing options...
Eloquent pilgrim Posted September 6, 2023 Share Posted September 6, 2023 On 9/6/2023 at 8:18 PM, ExpatOilWorker said: Under Section 654 of Thailand's Civil code, the maximum annual interest rate on a loan is set at 15% per year. https://www.thaiexaminer.com/thai-news-foreigners/2022/03/06/call-the-police-on-loan-sharks-says-big-joke/#:~:text=Under Section 654 of Thailand's,%2C this rises to 5%. Why have you posted that comment to me; It has nothing whatsoever to do with what I was asking ? 2 1 Link to comment Share on other sites More sharing options...
djayz Posted September 6, 2023 Share Posted September 6, 2023 Borrowing from Peter to pay Paul has never been a good idea. 1 1 Link to comment Share on other sites More sharing options...
hotchilli Posted September 6, 2023 Share Posted September 6, 2023 10 hours ago, snoop1130 said: Unaware of the penalties for late repayment, including hefty fines and interest charges, Bee’s financial situation worsened. She borrowed from a total of 18 online lenders, accumulating a debt of 2.6 million baht. She was pressured to repay approximately 150,000 baht per day, a figure she could not meet. In Thailand know as Zig-zagging... or robbing Peter to Pay Paul ... The problem stems from not knowing when to stop 1 Link to comment Share on other sites More sharing options...
Andycoops Posted September 6, 2023 Share Posted September 6, 2023 Unfortunately the tip of the iceberg, with a recent report saying the average household debt in Thailand was 500k or there abouts it's a national scourge. 1 Link to comment Share on other sites More sharing options...
brianthainess Posted September 7, 2023 Share Posted September 7, 2023 It amazes me how they spend all day staring at their phones, and yet miss ALL the news about being Scamed, by online scammers, now she is wants to warn society. 1 Link to comment Share on other sites More sharing options...
kingstonkid Posted September 7, 2023 Share Posted September 7, 2023 15 hours ago, impulse said: If there's any justice, a judge should wipe her slate clean and prosecute the people charging her 50% a week for interest. Sadly, she'd still have to leave town before a hit squad finds her, or 18 of them. While the interest rate is on the high side the lender did nothing wrong. Wiping out her debt only hurts the economy. It is part of the reason so many people have debt issues. Credit is easy. No one is teaching about bad credit or responsibility. Wipe out her debt and she will be online tomorrow borrowing Link to comment Share on other sites More sharing options...
digger70 Posted September 7, 2023 Share Posted September 7, 2023 Can't Fix Stupid . If one can't borrow from a Bank,(Doesn't get approved) One hasn't got the means to pay back Any Loan except from Friends an Family with Zero Interest to be paid. Link to comment Share on other sites More sharing options...
impulse Posted September 7, 2023 Share Posted September 7, 2023 (edited) 47 minutes ago, kingstonkid said: While the interest rate is on the high side the lender did nothing wrong. Wiping out her debt only hurts the economy. It is part of the reason so many people have debt issues. Credit is easy. No one is teaching about bad credit or responsibility. Wipe out her debt and she will be online tomorrow borrowing According to the info posted above by Expatoilworker, they exceeded the legal maximum interest rate by 143,464,822%. I checked his math and that is the correct annualized rate for a loan costing 50% a week. I'm assuming he has correctly quoted Thai law regarding the legal maximum at 15%. So while I can accept arguments that a black market loan network charging exorbitant interest is a necessary evil, it's still evil (and illegal) nonetheless. In most advanced legal systems, she'd qualify for a bankruptcy and the usurious lenders would qualify for a prison sentence. Edit: Rechecked the interest math and he did put a comma where a period belongs, so the correct annualized rate is a little over 143 million percent. Seems a little bit more than the legal rate in any case. Edited September 7, 2023 by impulse 1 1 Link to comment Share on other sites More sharing options...
kimamey Posted September 7, 2023 Share Posted September 7, 2023 It seems as if she was initially able to pay, but then something happened to prevent that. After that it's a slippery slope that's difficult to avoid. It also appears she's not trying to avoid paying, just not at the high rates. I give her credit for making an effort to earn money after losing her job. I don't know if she went to a bank first, and if she didn't then why not. I suspect its probably due to banks being a bit intimidating and doing it online just seems easier. Link to comment Share on other sites More sharing options...
ExpatOilWorker Posted September 7, 2023 Share Posted September 7, 2023 39 minutes ago, impulse said: Edit: Rechecked the interest math and he did put a comma where a period belongs, so the correct annualized rate is a little over 143 million percent. Seems a little bit more than the legal rate in any case. I think my math and 143 billion % is correct. Annual rate = ((1.5^52)-1)×100 [%] Link to comment Share on other sites More sharing options...
impulse Posted September 7, 2023 Share Posted September 7, 2023 2 minutes ago, ExpatOilWorker said: I think my math and 143 billion % is correct. Annual rate = ((1.5^52)-1)×100 [%] You're right... 1 Link to comment Share on other sites More sharing options...
kingstonkid Posted September 8, 2023 Share Posted September 8, 2023 On 9/7/2023 at 12:06 PM, impulse said: According to the info posted above by Expatoilworker, they exceeded the legal maximum interest rate by 143,464,822%. I checked his math and that is the correct annualized rate for a loan costing 50% a week. I'm assuming he has correctly quoted Thai law regarding the legal maximum at 15%. So while I can accept arguments that a black market loan network charging exorbitant interest is a necessary evil, it's still evil (and illegal) nonetheless. In most advanced legal systems, she'd qualify for a bankruptcy and the usurious lenders would qualify for a prison sentence. Edit: Rechecked the interest math and he did put a comma where a period belongs, so the correct annualized rate is a little over 143 million percent. Seems a little bit more than the legal rate in any case. I agree price is rediculous but no one twisted her arm. she knew what it was upfront. People excuse the borrower but no one is forcing them and there are a lot of sharks in the sea. Link to comment Share on other sites More sharing options...
impulse Posted September 8, 2023 Share Posted September 8, 2023 25 minutes ago, kingstonkid said: I agree price is rediculous but no one twisted her arm. she knew what it was upfront. People excuse the borrower but no one is forcing them and there are a lot of sharks in the sea. But it's a lot like drug dealers. Nobody's forcing their customers to buy, but we still recognize the harm they cause to the community and that their actions are illegal. And we lock them up. And if we're a compassionate society, we help the victims recover from their own bad decisions. That's what bankruptcy is for. Link to comment Share on other sites More sharing options...
kingstonkid Posted September 9, 2023 Share Posted September 9, 2023 20 hours ago, impulse said: But it's a lot like drug dealers. Nobody's forcing their customers to buy, but we still recognize the harm they cause to the community and that their actions are illegal. And we lock them up. And if we're a compassionate society, we help the victims recover from their own bad decisions. That's what bankruptcy is for. I agree about loan sharks. Using your analogy. Yes we forgive her drug use we arrest the bad dealer tell her not to do drugs again and set her free with no responsiblity or without any education as to how to live her life without drugs. What is the first or second thing she is gong to do when she hits the streets. Bankruptcy is a way out the challenge is that while in my time if you filed for bakruptsy it was the end of the world and a bad thing a last resort. Today it does not have the sigma too many people all over the world are gond it. No sooner do they file but as soon as they get releif they are back to their old ways. They are getting credit cards with higher interest they are going back to different loan sharks. Also to use a different analogy take a gambler that bets on everything and gets into huge debt trouble. Bankruptcy does not remove the debt, yes his bookie may get arrested but they just sell the book to another person who looks to collect. Loan sharks do not go away someone is always interested in picking up the book. In real world they are called collection agences Link to comment Share on other sites More sharing options...
DLock Posted September 9, 2023 Share Posted September 9, 2023 On 9/7/2023 at 9:50 AM, brianthainess said: It amazes me how they spend all day staring at their phones, and yet miss ALL the news about being Scamed, by online scammers, now she is wants to warn society. Bee wasn't scammed. Bee is just not very bright. Bee kept lending 18 times trying to get out of debt. Bee is now trying to garner sympathy because she owes 2.6million baht. Silly Bee. 1 Link to comment Share on other sites More sharing options...
Deserted Posted September 9, 2023 Share Posted September 9, 2023 She's mad to get caught up in all that and should have thought it through more. Link to comment Share on other sites More sharing options...
Adumbration Posted September 9, 2023 Share Posted September 9, 2023 On 9/7/2023 at 12:16 AM, djayz said: Borrowing from Peter to pay Paul has never been a good idea. Before the digital age it used to be referred to as kiting cheques. Link to comment Share on other sites More sharing options...
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