Crime Businessman Claims He Was Duped into Taking Out Loan with Shocking 720% Annual Interest Rate

[Georgealbert]

 

Picture courtesy of Amarin.

 

A 51-year-old entrepreneur has filed a complaint with the Economic Crime Suppression Division (ECD) claiming he was the victim of a predatory lending scheme that charged him a staggering 720% annual interest rate and later sent enforcers to intimidate him at home.

 

Mr Woradech, a businessman who manufactures atmospheric water generators, lodged his complaint at ECD headquarters on Phaholyothin Road, accompanied by Assistant Professor Dr Kriangsak Pintusornsri, a lawyer known for representing victims of injustice.

 

According to Mr Woradech, the ordeal began in May when he came across a Facebook advertisement offering private loans with limits of up to 100 million baht. Interested, he made contact and was asked to submit business documents, including his commercial registration, national ID, house registration and phone number. Shortly after, he was contacted by individuals posing as representatives of a finance company who came to inspect his business premises.

 

“They looked respectable, well-dressed and polite, presenting themselves as representatives of a large financial institution,” Mr Woradech explained. He was persuaded to provide further documents and was guaranteed a loan limit of 5 million baht. The fraudsters took all his company documents, allegedly to assess the creditworthiness of his operations.

 

On 3 May, he was told he would receive an initial disbursement, but was first required to establish a credit record by making daily repayments. The loan terms, however, were deeply exploitative. He was given 100,000 baht but made to sign for 120,000 baht. After deductions for fees, he received only 85,000 baht. The effective interest rate amounted to 720% annually.

 

Mr Woradech said he was then expected to repay 5,000 baht daily over a period of 24 days, with the promise that his credit limit would be increased if he paid on time. Representatives visited him daily to collect payments. Over the course of two months, he claims to have paid 230,000 baht in total.

 

When he could no longer keep up with the payments, the alleged lenders escalated their tactics. A group of around 15 men showed up at his home and issued threats of violence. Fearing for his safety, Mr Woradech reported the incident to a local police station in Samut Prakan province. Although officers responded, the group dispersed before returning after police had left. A police acquaintance was asked to stay overnight for protection, but the intimidation continued.

 

Dr Kriangsak, his legal counsel, condemned the loan shark network, describing it as mafia-like and operating with impunity despite the public nature of its operations, including Facebook advertising. He pointed out that such behaviour violates multiple laws, including the Interest Rate Act and could amount to criminal conspiracy involving five or more individuals.

 

“This is not an isolated incident,” said Dr Kriangsak. “I believe many more victims are too frightened to come forward. It is deeply troubling that despite clear signs of wrongdoing, including unlawful interest rates and public deception, no effective legal action has been taken. We will push this case as far as necessary, including investigating whether any police officers are complicit. If so, they will face legal consequences without exception.”

 

He also urged the public to be wary of online loan offers that seem too good to be true, adding, “No legitimate lender would offer 100 million baht in unsecured loans through Facebook. These are classic scams designed to prey on desperate individuals.”

 

The ECD is currently investigating the case following Mr Woradech’s formal complaint.

 

 

  Adapted by Asean Now from Amarin 2025-07-03

 

 

 

[Ralf001]

did he think the 2% interest was yearly ?

[ukrules]

Arrest the lot of them and lock them up for say 5 or 10 years. That should teach them some manners.

[JoePai]

Ponder : if this businessman had a legal, viable business why not go to one of the main banks ?

[watchcat]

On 7/2/2025 at 10:39 PM, Georgealbert said:

claiming he was the victim of a predatory lending scheme that charged him a staggering 720% annual interest rate and later sent enforcers to intimidate him at home.

 

Not much of a business man....