Thai company accused of 3 billion baht condo scam

[snoop1130]

Picture courtesy of KhaoSod

 

By Bright Choomanee

 

A financial scandal involving a company accused of deceiving people into buying condominiums has left victims in debt amounting to 3 billion baht. Pavena Hongsakul, chairperson of the Pavena Foundation for Children and Women, accompanied 70 victims to submit a formal request for investigation to the Department of Special Investigation (DSI) yesterday, December 10.

 

The victims, representing over 200 affected people, allege that the company promised to help close their existing debts but instead coerced them into buying multiple condominium units, each accumulating debts exceeding 10 million baht (US$296,345).

 

Pavena recounted that the foundation received complaints on December 7, prompting a detailed legal review of the documentation. The contracts were extensive, highlighting the complexity of the debt resolution process.

 

The primary concern was the overwhelming debt burden on each individual, which ranged from 10 to 40 million baht (US$296,345 to 1.18 million). The victims, mostly young working adults with familial responsibilities, feared bankruptcy and the subsequent impact on their lives, including job loss, asset seizure, and damaged credit ratings. Consequently, Pavena led the victims to file a request with DSI Director Yuttana Pradam for intervention.

 

“The victims are facing insurmountable debts, unable to meet instalment payments on multiple condominium units. This situation not only affects their financial stability but also poses a risk to banks and the broader economy.”

 

 

The victims seek the DSI’s assistance in facilitating negotiations with Thai banks to restructure the debt, such as suspending interest and payment delays. This would provide the victims an opportunity to either sell or lease their condominiums and regain financial footing.

 

Condo scam

 

Furthermore, there is a call for an investigation into the business practices of the company, which continues to advertise similar schemes on social media, potentially leading to further significant financial damage.

 

One victim, referred to as Meen (a pseudonym), shared her ordeal. Earning a monthly salary of over 40,000 baht (US$1,185), she initially had a credit card debt of 900,000 baht (US$26,660). A company representative contacted her, offering to settle her credit card debt on the condition that she refrains from incurring further debts.

 

Meen was unaware how the company learned of her financial situation. Following the settlement, she registered the agreement at the Khu Khot Police Station and was subsequently entangled in a project to finance condominiums.

 

“I thought I was purchasing only one unit but the company submitted documents to multiple banks simultaneously, resulting in loans for four units. I now face a debt of 16 million baht (US$473,940). The company promised to cover the payments for three units but they defaulted, leaving me to face legal action from the banks.”

 

Other victims shared similar stories, with some initially holding credit card debts of 600,000 baht (US$17,772), only to end up indebted for five condominium units totaling 15 million baht (US$444,320). Some cases involve debts as high as 25 to 40 million baht (US$740,620 to 1.18 million) for six units.

 

The victims formed a group chat with over 200 members, all experiencing significant stress and despair, exacerbated by the company’s closure and advice to negotiate independently with banks. In a moment of distress, Meen considered suicide but reached out to the Pavena Foundation for help, reported KhaoSod.

 

DSI Director Yuttana Pradam acknowledged the gravity of the situation.

 

“We have received the complaint and will conduct an initial review. The victims are advised to file reports with the Economic Crime Suppression Division, as the financial damage amounts to 3 billion baht (US$88.8 million). If the case meets certain criteria, it will be designated as a special case.”

 

Source: The Thaiger

-- 2024-12-11

 

 

[hotchilli]

When in a hole stop digging... in debt and need to restructure, I will agree to buy condo's ????

[rwill]

So these people couldn't afford to pay for the condo they bought and thought it was a good idea to buy more of them.

Doh....

[jcmj]

I guess that they just believed them and didn’t read the contract. How could they possibly think that this was a legitimate solution?  I think the company is still responsible, but buyer beware as always. If it sounds too good to be true, it is. 

[pomchop]

They are not alone...a fool and his money are soon parted:  

 

Key points about scam losses globally:

• $1 trillion estimate: This is the most widely cited figure for global scam losses annually. 
   
• Source: This information comes from reports by the Global Anti-Scam Alliance, which analyzes data on scam trends and losses worldwide. 
   
• Increasing trend: The total amount lost to scams is considered to be on the rise due to the increasing sophistication of online scam tactics. 

[henryford1958]

I don't understand this scam. Meen was 900,000 baht in debt (23 x her monthly salary) on her credit card. The company offered to clear the debt if she bought a 4 million baht condo !! Even without this increasing to 16 million for 4 units why would she agree it ? It still left her 3.1 million in debt.