Thai Money Lending Clubs?

[edcorkie]

Has anyone else heard of money lending clubs? I think there called Chairs if so word of warning as they have just caused my marriage to break down.

[farangene]

Has anyone else heard of money lending clubs? I think there called Chairs if so word of warning as they have just caused my marriage to break down.

They are called "shares" club and some Th friends who are in them enjoy the social interaction with the group as much as financial rewards of investing. There is usually a group dinner periodically (monthly). The ones who have told me about it, all seemed to have made money and consider it almost risk free.

[lannarebirth]

Previous thread outlining this process:

http://www.thaivisa.com/forum/Financing-Th...ml&hl=share

[edcorkie]

thanks for the link. Seems the wife owes the Share thousands and has now lost face with local thai community and wants to flee back to thailand

[Harcourt]

thanks for the link. Seems the wife owes the Share thousands and has now lost face with local thai community and wants to flee back to thailand

So she borrowed from the club and didn't pay it back, and wants to flee to Thai, and your marriage has broken down because of this?

Were you aware that she had borrowed? What did she need to borrow "thousands" for?

Somehow, although I am sorry about your domestic situation, I don't think the share club is the root of the problem. Perhaps the catalyst or the excuse.

[edcorkie]

My wife is a gambling addict who won't get help. I have bailed her out many times but i am unable to help anymore as i am still paying for her previous debts. Having warned all her friends last time not to lend my wife anymore money i am angry they let her with her history get involved. She now see's no way out but to flee which is very sad as she will be leaving 2 lovely girls.

[garyh]

I am sorry to here of your marriage problems, I know a few others with thai wifes that are gambling addicts. It's not the fault of the share club if she has a gambling problem. Gambling is not just a Thai problem either. Your orginal post should be deleted or edited as you are blaming the share club when the fault is elsewhere.

[IanForbes]

I am sorry to here of your marriage problems, I know a few others with thai wifes that are gambling addicts. It's not the fault of the share club if she has a gambling problem. Gambling is not just a Thai problem either. Your orginal post should be deleted or edited as you are blaming the share club when the fault is elsewhere.

I agree with everyting you say, Gary. It's no fault of the investment club if someone has a gambling problem. I have a very good friend here in Canada whose wife had a gambling problem that eventually led to their divorce... after losing all their savings of course.

[daoyai]

The share club will only be as good as it's members, there is very little that can be done if there is a bad apple. A good concept though.

[skipvice]

The share clubs that I remember when the wife and had problems years ago were also the same people she gambled with.

after we were totaly broke did my wife finnaly see the light and stoped. it tool us awile to recover and now life is great.

My advice is to stay clear of such clubs.

[Briggsy]

"Never a lender or borrower be" is good advice anywhere and particularly so when dealing with Thais. When asked by Thai colleagues if I would like to join the share club, the question sounded in my mind as "Would you like to hold 'a dirty protest' in your own apartment?" The potential for cheating and falling out is enormous. Since the OP has brought the subject up, here's another wise saying that holds very true here. "Gambling's a mug's game."

[Gary A]

My ex Thai wife became addicted to gambling, lost all her savings, then lost her gold. I stupidly bought her gold out of hock and gave it back to her. She lost it again and finally stole 20,000 baht from my ATM. That was the end. Gambling was more important to her than any other thing in her life. She eventually married a nice Thai guy and proceeded to lose his life savings.

[lazygourmet]

Ponzi scheme, at Moo Baan level, that's it!

[dbrenn]

My wife is a gambling addict who won't get help. I have bailed her out many times but i am unable to help anymore as i am still paying for her previous debts. Having warned all her friends last time not to lend my wife anymore money i am angry they let her with her history get involved. She now see's no way out but to flee which is very sad as she will be leaving 2 lovely girls.

You are better off without her. A gambling addict who won't get help will end up ruining you.

[Heng]

Yeah, the problem is the person who cheated the share club, not the share club itself. We have a group of reliable members that likely will never go anywhere (and we'd notice if their gold shops, apartments, hotels, etc. were about to fold). Interest definitely beats the banks and stock market, but more importantly it has greater social value that allows like minded folks with similar interests to meet and hang out.

[Lite Beer]

My Wife belongs to a few share clubs. She always seems to make a profit.

I have been known to join in now and again to make the numbers up. Always got back more than I paid in.

[LivinLOS]

Ponzi scheme, at Moo Baan level, that's it!

If the members are a tight nit group, family, etc then they seem to be fine.. But it only takes one bad loan to ruin the system.

The wifes done a couple of past rounds successfully, shes doing 2 now one only 12 months one just started for longer. I dont mind much as its enforced saving, she has to keep her monthly going in (face with family) its administered by a stable favourite auntie who only lets close people in, and it gets a small return. Its the enforced saving part I think is helpful as shes awful at it herself.

[tavarich]

I discovered my wife doing this a few years back. I kept hearing about this "business" she was doing. When I found out the details it was clearly a pyramid scheme. I gave it the name "monkey business" It took a little convincing but the name stuck and a few runners later she has been cured.

I think

[Briggsy]

I discovered my wife doing this a few years back. I kept hearing about this "business" she was doing. When I found out the details it was clearly a pyramid scheme. I gave it the name "monkey business" It took a little convincing but the name stuck and a few runners later she has been cured.

I think

If you think it's a pyramid scheme, then you don't understand how these things work.

It's an opportunity for those with fiscal discipline to make money out of those who live hand to mouth. It has more in common with loansharking than pyramid schemes.

However in order for it to work, all involved have to keep up their payments for the duration of the 'round'. Often they don't. Often they disappear when they owe a lot of money.

[skipvice]

My wife says they are not legal, so if someone runs with the money, who you going to call ??

Edited September 2, 2009 by skipvice

[Travel2003]

I asked my wife about this, and if she ever were a member of such a club.

She looked at me and asked if I was crazy.

No way! She said.

Too many of her friends (and relatives) have lost money because someone ran off with the money.

[Heng]

At the lower end of the socio-economic spectrum, share clubs are messy and should be avoided. If folks have managed their entire lives without building anything out of it, there's no reason to think that lump sums of cash will help them any.

At the very least, every single share club member should have a moderately successful business, and at the very least one that has been established for some time. You should approach it just like making a loan to a single person, only X10, X15, X20 or however many members there are. The 'tao' the person who arranges the interest 'draw' each month should also be one of the more successful and established of the club.

[Gary A]

Ponzi scheme, at Moo Baan level, that's it!

You either have no idea what a Ponzi scheme is or you have no idea what a share club is. Ther is no resemblance at all.