Mafia Thai Loan Sharks

[haveaniceday]

We have a very stick policy of not lending money to family members. Unfortunately it's the same as giving money away. Just easier to be, 'sorry, no have'. In trying to help out though, I remember reading about a year ago about a Thai Federal Gov plan of cheap loans for Thais so they can avoid the pit falls of Mafia style loan sharks.

Does anyone remember information or have any links I can pass on to Thai folks needing money that this walking ATM rejected? Links in Thai are all good as well, possibly better.

A million seek govt help with loanshark debts

By The Nation

Published on January 19, 2010

Close to a million people owing just under Bt105 billion in total to local loansharks had registered for the government debt-relief scheme last month, a source at the Interior Ministry reported yesterday.

LINK BELOW:

A Million Seek Govt Help With Loan Shark Debts - Thailand Forum

Edited June 20, 2010 by haveaniceday

[yabaaaa]

These people who borrow off loan sharks are the kind no one else will touch and for good reason............they wont pay it back or are such a high risk then the real lenders wont risk it.

If they did pay it back there would be no problem and as such they create their own rod for their back in being unreliable.

[ballbreaker]

Remember the plan but think it had a cutoff date for applying and I think that date has passed.

[Heng]

Yeah, pretty much. These folks like to skip over the part in their stories where they go to the loan shark with cup in hand. Not that these sharks (let's say if you're charging greater than 2% per month) are decent folks by any standard either though.

[Crossy]

I agree with the above.

We actually used one of the local money lenders for a bridging loan of a few months, far easier (i.e. possible) than the local banks. What catches out the gullible is the fact that the quoted payment does not cover any principal repayment, only interest, so you pay for two years and still owe the same as when you started, never ending payments

[Heng]

Myself I don't think that's a loophole or trap for the gullible but a simplification that makes the terms of the loan easier to understand (and calculate compared to a lot of bank type loans with varying rates and often multiple page terms to each loan contract).

Traditionally the principal isn't figured in because it's expected that that will be paid off in balloon amount(s), and thus you always know what you owe in full.

[Stravaig]

We have been cheated by a family member who is incapable of telling the truth about anything. Turns out that they've also been to the loans sharks. The whole thing is such a mess that we're leaving the country to get away from these relatives. So much for living in Paradise. Europe here we come. Most likely we'll come back when the dust has settled but we've had more than enough of them for now. It's got to the stage where we don't even have the phone switched on any more in case it's another bl**dy crisis caused by their stupidity.

[slapout]

Myself I don't think that's a loophole or trap for the gullible but a simplification that makes the terms of the loan easier to understand (and calculate compared to a lot of bank type loans with varying rates and often multiple page terms to each loan contract).

Traditionally the principal isn't figured in because it's expected that that will be paid off in balloon amount(s), and thus you always know what you owe in full.

I like the smiley face. If I had not been asked for my opinion and subsequently looked at some bank loan papers here in the LOS I might think you were pulling my leg. If a principle payment is late the interest rate is increased for the life of the loan. specific Age of the borrower at loan closing can shorten time of loan by 50 % (get the loan while its hot) Penalty for early payment of principal, The loan papers seemed to 5 or more single space pages of possible escalation clauses, etc. I can see why many people financing from people/institutions other than banks

[Heng]

Surely banks in other countries are just as diligent in covering their rears in terms of loan contracts? I know just my online banking terms of service seem to have add-ons every several months and all topics that seem to protect the bank (or increase their bottom line) more than the consumer.