A family in Nonthaburi province found refuge at a bus stop after fleeing their home due to threats from a loan shark who demanded daily interest payments. The incident took place yesterday at 8pm, on February 25, when the family, lacking the funds to meet the exorbitant interest demands, feared for their safety.

 

Photo courtesy of KhaoSod

Nontranut Promjan, the chairman of the Nonthaburi task force, visited the site upon receiving a tip-off from a concerned citizen about a family seen sleeping at a bus stop in front of a shopping centre on Rattanathibet Road, Bang Kraso sub-district, Muang district. Upon arrival, he discovered a 49 year old man along with his 40 year old wife and their 12 year old son, a sixth-grade student, taking refuge behind the bus stop signage, reported KhaoSod.

 

Photo courtesy of KhaoSod

The man revealed that three months prior, he and his wife each borrowed 5,000 baht, totalling 15,000 baht, from an informal lender. They were obligated to pay 300 baht in interest daily, which translates to 100 baht per 5,000 baht borrowed.

This type of interest, known as floating interest, does not reduce the principal amount owed. Despite consistently paying the interest, the family found themselves unable to meet the payment on the due date.

The loan shark’s threats via phone, warning that failure to pay would result in being forcibly taken away in a van, instilled enough fear in the family to make them abandon their home.

 

Photo courtesy of KhaoSod

Following the discovery, Nontranut escorted the family to the Rattanathibet Police Station, where the husband filed a complaint against the loan shark for intimidation and threats of harm. The police assured them of their safety and escorted the family back to their rented accommodation, promising to look after their security.

 

In related news, cyber police arrested a Thai man in Trang for offering high-interest loans and allegedly coercing debtors into sex, leading to public shaming on social media.

 

by Nattapong Westwood

Photo courtesy of KhaoSod

 

Full story: The Thaiger 2024-02-26

 

- 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

 

33 minutes ago, webfact said:

he and his wife each borrowed 5,000 baht, totalling 15,000 baht

 

Well, there's the problem!

2 hours ago, webfact said:

The police assured them of their safety and escorted the family back to their rented accommodation, promising to look after their security.

I wonder how they will do that 24/7 ?

Loan sharks unfortunately is a common thing here.

2 hours ago, NoDisplayName said:

 

Well, there's the problem!

Yeah, I was wondering about that also

 

I am sorry I just can not feel any sympathy for these people that borrow from these lenders.

 

It is not like this is an uncommon thing.  I am sure that the lender advised them of the payment schedule and what would happen.

 

It is the same with people who can not afford credit cards and, due to their history, end up with high-interest rates.  Again you read the info, and you were told what to expect.  

 

I am willing to bet that a few months down the road these same people will be borrowing again and thinking that the police will solve their need to make any payment. 

 

 

8 minutes ago, hotchilli said:

I wonder how they will do that 24/7 ?

That is quite easy actually.  They just advise the lender that if anything happens to these people, they will be arrested and charged.

5 minutes ago, zhounan said:

Loan sharks unfortunately is a common thing here.

Sorry, to burst your bubble, but loan sharks are common all over the world and have been around since before Jesus.  Just like prostitution, they are a by-product of society that will always be needed.

2 minutes ago, kingstonkid said:

That is quite easy actually.  They just advise the lender that if anything happens to these people, they will be arrested and charged.

Sharks don't always think things through, they act first, Wai later.

17 minutes ago, hotchilli said:

Sharks don't always think things through, they act first, Wai later.

LOL JUst like their clients

29 minutes ago, zhounan said:

Loan sharks unfortunately is a common thing here.

 

as they are pretty much all over the world

38 minutes ago, it is what it is said:

 

as they are pretty much all over the world

Sorry to put you down, but this is about Thailand... no where else.

1 hour ago, kingstonkid said:

Sorry, to burst your bubble, but loan sharks are common all over the world and have been around since before Jesus.  Just like prostitution, they are a by-product of society that will always be needed.

Sorry to put you down, but this is about Thailand... no where else.

Very sad that people still fall in those traps. I knew it waw illegal but never looked too much further. This article made me do it. So, for consumption, the max legal rate is 15% (annually as per banking standards) . Let's do some maths, 200 for 10000, that's 2% ... per day. Annually it makes a 730% rate, almost 50 times the legal maximum rate. No worries !!!

 

Information found in the Civil and Commercial Code, Loans (Section 650-656), Section 654.

1 hour ago, kingstonkid said:

That is quite easy actually.  They just advise the lender that if anything happens to these people, they will be arrested and charged.

Did you know that most if not all loan sharks have either police protection or partnered with police. 

The man revealed that three months prior, he and his wife each borrowed 5,000 baht, totalling 15,000 baht, from an informal lender. 

 

5000 short and a day later

 

 

maybe thai solution would be, to force loan sharks to give a comprehensive information leaflet how to pay back, how much and when, daily interest rates,...  isn't there somewhere you can report those or are they the same as the men in brown that have side business

17 hours ago, AustinRacing said:

Did you know that most if not all loan sharks have either police protection or partnered with police. 

Yes but once it is on the books even the other cops have to be careful.

 

There are other ways to get the money, unfortunately.

18 hours ago, Aussie999 said:

Sorry to put you down, but this is about Thailand... no where else.

Not [putting me down, but I think that a lot of time, people on here seem to think that this or that is a Thai issue only.

 

The main thought still stands.  

 

The people who are borrowing from them have no credit rating. It is too low to register.  They have been refused by the bank and are desperate and, to a point, lacking the education.

 

There is also the prevailing feeling that if the debt gets bad that the government will save them by either wiping their debts or by taming the shylocks.

 

I think probably also there are those that thought they would have their 10k from the government and be able to pay the debt with that or the extra mney they were going to get from the rise in wages

 

 

 

I want to know what they used the loan for.

Booze? Food? Motorcycle?