Informal lender hit by a car after demanding payment from borrower

[Bday Prang]

2 hours ago, Bday Prang said:

Not easy to say from under a pickup though is it     Have you any idea how many Thais default on loans and finance.    The word in Thai language for "debt"   and the word for "running away and disappearing" is  almost identical, the only difference being the tone used in pronunciation  

The word is "Nee"  be worried if you overhear  your TeeRak using this word with either a high or rising tone,  be especially concerned if she uses them both in the same sentence

Whoever posted the "confused" emoticon to the above post really ought to brush up on their Thai language skills as soon as possible

[FruitPudding]

6 hours ago, RobU said:

Husband kills loan shark to protect his wife since there is no other option.

 

He could have used the car - assuming he owns it - to borrow from the bank.

 

Probably could have gotten a few hundred thousand (against the car) if he wanted that much.........and at a relatively reasonable rate, too.

 

Then, just give the loan shark back the original 13,000 baht to settle the debt.

 

And then pay the bank back to get the carbook back over a number of years, at a few thousand baht per month.

 

He'd still have a few hundred grand in his pocket from the car refinancing, so he wouldn't have to worry too much about missing payments and losing the car.

[FruitPudding]

8 hours ago, Scouse123 said:

They could have borrowed against the pickup at far cheaper rates.

 

Exactly.

 

Use the pick up to borrow money from the bank or use the pick up to murder someone.

 

Tough choice.

[FruitPudding]

4 hours ago, lordgrinz said:

Man, I need to get into the Debt business, I would have said no more payments needed after they paid back double the cash, and I would have smiled at them and said "great doing business with you".

 

I have a friend in this business. It seems nothing but hassle.

[RobU]

25 minutes ago, FruitPudding said:

 

He could have used the car - assuming he owns it - to borrow from the bank.

 

Probably could have gotten a few hundred thousand (against the car) if he wanted that much.........and at a relatively reasonable rate, too.

 

Then, just give the loan shark back the original 13,000 baht to settle the debt.

 

And then pay the bank back to get the carbook back over a number of years, at a few thousand baht per month.

 

He'd still have a few hundred grand in his pocket from the car refinancing, so he wouldn't have to worry too much about missing payments and losing the car.

 

12 minutes ago, FruitPudding said:

 

Exactly.

 

Use the pick up to borrow money from the bank or use the pick up to murder someone.

 

Tough choice.

How do you know the pick up was worth anything? You both sound like rich foreigners who manage debt from a good income. My car is 19 years old, well maintained and I hope may last another 20. No bank would give me a 13000 baht loan on it it's probably more than the car is worth. I see many old banger pick ups on Thai roads especially here in the north

[Bday Prang]

The fact that anybody has to resort to borrowing money from these scum is only proof of a total lack of intelligence and also irrefutable proof of a history of such behaviour.  

Somebody said on this thread earlier that the poor have no other option that is not really true, every village has somebody who will lend out money and every Thai will know several who lend out money.  The traditional rates of interest usually "Roi la Ha" or "Roy la sip"   5% or  10% per month still extortionate but infinitely more manageable than the interest rates exhibited in th OP

The only reason the guy in the OP could not avail himself of this service is because he will have had a history of defaulting on such loans and the locals wouldn't touch him with a barge pole 

When they borrow money from these out of town "mafia style" loan sharks , they are clearly informed of the extortionate interest rates that will be applied and also of the consequences if the default. It is not hidden in any small print.

But it goes in one ear and with little to obstruct its path, it comes straight out the other. 

There is always a sad story, in this case alleged medical treatment, My inlaws aren't getting any younger there have been frequent spells in (government) hospital and no payment was  ever required  missis's sister had a cyst removed too, again no charge. 

The guy in the OP seems to be driving around in quite a nice pick up,  what does he do when his insurance is due or he needs new tyres?  Please don't anybody try to tell me that he budgets for such foreseeable regularities , 

Its brand new cars and motorcycles every time for these types,  nothing else will do,  and no problem or shame expecting others to pick up the bill

Advice to all who read this thread, never ever lend them money under any circumstances whatsoever

 

[Dan O]

15 hours ago, hotchilli said:

When banks won't lend to you because of low income or loan gaurantee issues what are they expected to do?

they have to live.. people are forced to do what you call "stupid things"

I guess you've never been broke?

While you have a valid point about needing to find alternatives if you can't qualify for a bank loan but thats a huge tell the you cant afford to borrow from loan sharks at the rates they charge. 63k paid on a 1300 baht loan is atrocious to say the least. Being poor isn't the problem here. 

[Liverpool Lou]

15 hours ago, peter zwart said:

If you are able to pay 700 baht a day, why in Lords name do you borrow 13k?????????. 

How about because three months ago she needed B13k but didn't have it?

[Liverpool Lou]

15 hours ago, VinnieK said:

Borrowing money from a loan shark.

If this isn't the biggest 'tell' for stupidity ,I wonder what is..

Perhaps posting that comment is.

[Liverpool Lou]

14 hours ago, Scouse123 said:

They could have borrowed against the pickup at far cheaper rates.

Could they...how do you know that?  Was the pickup unencumbered?

[Liverpool Lou]

12 hours ago, itsari said:

Difficult to work out what interest rate the woman has agreed too with the information given in the article .

I can work out that the percentage charged is or was astronomical .

"Difficult to work out what interest rate the woman has agreed too".

Loan sharks don't quote an APR!   They front the cash and tell the borrower how much they have to pay per day/week/whatever.   The interest rate is irrelevant to the "informal" borrower who has no other source of funds.

[Liverpool Lou]

9 hours ago, Burma Bill said:

This may be a "silver lining" as she could get treatment for/removal of her cyst at a Police Hospital?

Why do you think that she's going to jail?

[Liverpool Lou]

9 hours ago, Bday Prang said:

14 hours ago, Scouse123 said:

They could have borrowed against the pickup at far cheaper rates.

They could even have sold it , or traded down     but that would involve loss of face

You're assuming that there was equity in the pickup. 

[Liverpool Lou]

6 hours ago, NE1 said:

That might have been an enforcer/collector that was killed , the actual money lender will be sat on is 'arris somewhere counting his baht.

No, it was the lender who was killed...unless you're re-writing the OP.

[Liverpool Lou]

6 hours ago, FruitPudding said:

He could have used the car - assuming he owns it - to borrow from the bank.

Could he, how could you know that?  Did he have a verifiable income - banks don't lend if there isn't any.

[Liverpool Lou]

6 hours ago, FruitPudding said:

Then, just give the loan shark back the original 13,000 baht to settle the debt.

Loan shark debt repayments don't usually work like that!

[Liverpool Lou]

6 hours ago, FruitPudding said:

 

He could have used the car - assuming he owns it - to borrow from the bank.

 

Probably could have gotten a few hundred thousand (against the car) if he wanted that much.........and at a relatively reasonable rate, too.

 

Then, just give the loan shark back the original 13,000 baht to settle the debt.

 

And then pay the bank back to get the carbook back over a number of years, at a few thousand baht per month.

 

He'd still have a few hundred grand in his pocket from the car refinancing, so he wouldn't have to worry too much about missing payments and losing the car.

What?

[Liverpool Lou]

6 hours ago, FruitPudding said:

 

Exactly.

 

Use the pick up to borrow money from the bank

Some people have no idea how legitimate lending works, banks don't just hand out cash in exchange for blue books, they need to see their money being paid back, they're not used car dealers.

[VinnieK]

28 minutes ago, Liverpool Lou said:

Perhaps posting that comment is.

You should go out more often.

[Bday Prang]

13 minutes ago, Liverpool Lou said:

You're assuming that there was equity in the pickup. 

true enough Lou, but where I come from, and where I currently live now, there is always some equity in a vehicle ( one way or the other) , helps a bit if its insured though, which is something I hadn't considered at the time I commented

[Liverpool Lou]

2 minutes ago, Bday Prang said:

21 minutes ago, Liverpool Lou said:

You're assuming that there was equity in the pickup. 

true enough Lou, but where I come from, and where I currently live now, there is always some equity in a vehicle ( one way or the other) , helps a bit if its insured though, which is something I hadn't considered at the time I commented

And there needs to be enough income to service a legitimate loan.  Banks want their money back, plus interest, not a potentially old, shagged pickup.

[Liverpool Lou]

9 minutes ago, VinnieK said:

38 minutes ago, Liverpool Lou said:

Perhaps posting that comment is.

You should go out more often.

Why?  I see more than enough of it here without going looking for it.

[Bday Prang]

3 minutes ago, Liverpool Lou said:

And there needs to be enough income to service a legitimate loan.  Banks want their money back, plus interest, not a potentially old, shagged pickup.

I wasn't suggesting a legitimate transaction if you get my drift

[itsari]

9 hours ago, Liverpool Lou said:

"Difficult to work out what interest rate the woman has agreed too".

Loan sharks don't quote an APR!   They front the cash and tell the borrower how much they have to pay per day/week/whatever.   The interest rate is irrelevant to the "informal" borrower who has no other source of funds.

No interest to the borrower I am sure . 

I was interested to know how much interest was being demanded , OK

There was no mention of how long the 700 baht was meant to be paid and that makes it impossible to find the interest rate the woman was paying .

I have read that many informal loans are 10 percent a month which is high compared to banks which are high enough at around 2 percent a month .

The loan in question must be 100 percent or more per month which is way above the informal informal borrowers are ready to pay according to the market price .

Loan sharks do not quote a rate of interest is total b

[FruitPudding]

10 hours ago, Liverpool Lou said:

Could he, how could you know that?  Did he have a verifiable income - banks don't lend if there isn't any.

 

Yes, they do.

 

You use the asset as collateral.

 

If you don't pay,  they keep the car.

[FruitPudding]

10 hours ago, Liverpool Lou said:

Some people have no idea how legitimate lending works, banks don't just hand out cash in exchange for blue books, they need to see their money being paid back, they're not used car dealers.

 

Tell that to my EX who was unemployed and used two cars as collateral to get a 1 million baht loan.

[FruitPudding]

10 hours ago, Liverpool Lou said:

Loan shark debt repayments don't usually work like that!

 

Of course they do.

 

They were to pay 700 a day interest until they gave back the initial 13,000 they borrowed.

 

They paid 700 a day interest for 90 days, totaling 63,000 on interest.

 

They could have given the loan shark back his 13,000 at any point and be free from it.

 

How do you think it works exactly?

[FruitPudding]

23 hours ago, itsari said:

Difficult to work out what interest rate the woman has agreed too with the information given in the article .

I can work out that the percentage charged is or was astronomical .

 

She had to pay 700 a day interest until she was able to return the initial loan.

 

The 700 a day is just interest,  not actually paying back the loan itself. She would still need to give back the whole 13,000, nevermind any interest paid.

[JeffersLos]

Apparently she went to the police.

 

But they were charging 900 per day. 

[Liverpool Lou]

1 hour ago, FruitPudding said:

 

Of course they do.

 

They were to pay 700 a day interest until they gave back the initial 13,000 they borrowed.

 

They paid 700 a day interest for 90 days, totaling 63,000 on interest.

 

They could have given the loan shark back his 13,000 at any point and be free from it.

 

How do you think it works exactly?

I'll defer to you as you've obviously seen the loan contract between the two parties.