Cyber Police Bust Loan Shark Charging 3% Daily Interest

[webfact]

 

In an extensive operation, cyber police arrested an online loan shark who was charging an exorbitant 3% interest rate per day, using threats and public shaming as intimidation tactics. The clampdown revealed numerous incriminating items linked to the illegal venture.

 

The operation, overseen by Cyber Police Chief Worawat Watnakornbancha, stemmed from a search warrant issued by the Trang Provincial Court. The raid, executed in Trang Province, led to the apprehension of 22-year-old Nichanan. Seized items included a mobile phone, 35 loan agreements, customer lists in six notebooks, and nine posters advertising fast loans.

 

Nichanan is accused of running a high-interest loan business without authorization. The investigation began when Cyber Police Division 5 discovered a Facebook account offering loans with an illegal daily interest rate of 3%, targeting individuals for amounts up to 100,000 baht. Non-payment was met with threats, public shaming on Facebook, or property destruction.

 

The cyber police tracked and identified the Facebook account and its owner, leading to the raid. Nichanan is now in custody at Sikao Police Station, facing charges and further investigation.

 

This operation is part of a broader initiative to eliminate illegal loan practices and protect citizens from predatory lenders. Authorities are committed to ensuring financial businesses conform to legal frameworks, thus safeguarding individuals from exploitative financial practices.

 

In a related matter, a mother faced with a staggering debt of 2.6 million baht, resulting from a 10,000 baht loan taken 12 years ago for her child's school fees, highlights the severe impact of excessive interest rates. The debt spiraled out of control, prompting the mother to seek aid through the "Survive – Sai Mai Must Survive" Facebook page.

 

The crackdown and related stories underscore the increasing threat posed by online loan sharks exploiting vulnerable individuals through social media. The authorities are determined to prevent such exploitation through continued vigilance and enforcement.

 

Picture courtesy: Khaosod

 

-- 2024-06-15

 

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[OneMoreFarang]

1 hour ago, webfact said:

In an extensive operation, cyber police arrested an online loan shark who was charging an exorbitant 3% interest rate per day

Let me guess, they didn't arrest the others who charge 10% per day. Because those 10% leave enough profit margin to pay those annoying authorities... TiT

[Gottfrid]

5 hours ago, webfact said:

Non-payment was met with threats, public shaming on Facebook, or property destruction.

So, then it´s just the normal treatment these little small wannabe mafia clubs engage in. However, good that the police caught one of them anyway. We have these sad little guy renting a place close to us, coming every morning for a meeting with their trimmed pick-ups. They are a total joke! Trying to look so tough. I have told them many times to move their f-ing cars and stop parking on two sides of the small road, as well as turning down sound when partying after work. They just look with their silly faces and do like the are told. 😂

[retarius]

3% per day? How much is that in real money?

[JoePai]

30 minutes ago, retarius said:

3% per day? How much is that in real money?

a lot

[steven100]

52 minutes ago, retarius said:

3% per day? How much is that in real money?

 

on a loan of 10,000 baht ....  they would be paying 300 baht / per day in interest only,  without any reduction in the principle 10,000 loan.  

 

After 1 year,  they would have payed 109,500 baht interest ....   but still owe the 10,000 baht. 

[edwinchester]

3% a day? In our village daily rates are between 30 and 50%. Borrow 100 bht today, pay back 130-150 bht tomorrow. Madness!

[john donson]

police off course never find those sharks, same as illegal casinos, human traffickers, drug dealers

[brianthainess]

3 hours ago, retarius said:

3% per day? How much is that in real money?

1095 % PA. so on a 10k loan that is a staggering 10950000% PA. and that is just the interest not the loan, well that's my maths anyway.

[TroubleandGrumpy]

1 hour ago, brianthainess said:

1095 % PA. so on a 10k loan that is a staggering 10950% PA. and that is just the interest not the loan, well that's my maths anyway.

Fixed. 

But that is only if the 3% interest (300 Baht) is paid every day.

10K after one month is 25K - if no interest paid !! 

10K after one year of not paying the interest is 1.2 Million Baht - 12,000% 

That is why the sharks pursue them 'rigorously' after a few weeks.

 

What many Thais do is borrow 1K because they urgently need 500.

Then they use the 500 and pay back the 30 each day using the other 500K - hoping they can get 1K within 2 weeks. 

It is ugly and it is endemic in poor Thai society - not a good thing at all.

But there is a lot of it in the middle/big end too (there the sharks are called banks).

Edited June 15 by TroubleandGrumpy