Lending Issue, Advice Needed

[nikkoid66]

My Girlfriend's ex-boyfriend has lent some money to her at an excessive rate (5%/month).

This guy is a farang, he has a tourist visa and is asking for the money she cannot payback.

Actually she need to pay him back almost all her salary every month and the guy don't want to negociate anything...he just want the money back and is very upset.

What should I do?

[PattayaParent]

Stay out of it and find a new G/F

or

pay off the debt yourself.

[cardholder]

The interest rate is not excessive for Thailand.

If her salary is going on interest she either borrowed a lot of money or has a piss-poor salary.

I am assuming that she does not work as a partner in a legal firm.

8,000 baht salary with interest rate 5% "nearly all - say, 5,000 Baht = 100,000 Baht borrowed ????

What did she spend the money on ?

Don't stay with a girl who can't handle money.

[JurgenG]

People here seem to see only the dark side of every story.

She's trying to pay back, isn't it a positive point?

If the OP want to help and trust his gf, he may pay back the loan in full and ask the gf to pay him back every month what she can reasonably afford and at 0% interest.

Now I would investigate first what was the story behind the loan, due diligence as it's usually called.

[lomatopo]

Quote: What should I do?

Walk away.

[needforspeed]

Ask your GF to call her ex Boyfriend and explain to him that she is going to pay 1% interest a month and a monthly amount to pay back the loan.

If he is not willing to cooperate, ask her to change tel number and dont pay him at all .

That is why she call him EX

Edited November 28, 2010 by needforspeed

[Khonwan]

He can only use the law to force her to pay if he has a contract. The contract cannot state interest of more than 15%pa or 1.25%pm – the court will reduce any higher amount in the contract to this figure. My personal view is that 5%pm is too high (though very common) and that 3%pm is fair, though still considered too high by Thai law.

[onnut]

Dont pay back the money. The ex boyfriend knows the rules, don't lend money if you can't afford to lose it. His fault for lending it out in the first place. And what's he going to do about it? Nothing he can do!

[Loz]

Pay a cop a 1000b to negotiate for you. I'm sure when the cop points out that 5% is illegal and the proceedings may be "unpleasant" should they pursue that line of inquiry, he will be "more reasonable" You may have to the pay the cop a couple of thousand but it will be money well spent and you will be using the local system for such conflict resolution. a lesson in Thai cuture if you will. cheap at 2k ish...

[timekeeper]

a farang boyfriend loans her money for sick dying buffalo/ma or paa sick/ motorbike/death / a lai gu dai

he reads th ex-pat forums and as such he is sensible enough to agree favorable terms for himself before he makes the loan

she agrees to the loan but in reality she knows she cannot repay it, BUT still takes the money, tommorrow is another day

once she has the money in hand she takes leave of the boyfriend.

he is understandably upset

he feels stupid, smells deciept and betrayal and now he wants his money back,

she says she can't pay.

she gets a new boyfriend, he is now even more unhappy about the situation

as the new boyfriend, you are upset that she is upset and that she is still in contact with a now very upset ex boyfriend

he presumably is suggesting sexual favors to help her pay the debt

that makes you upset

you state he is on tourist visa as you are already considering reporting him to get him as some kind of farang loan shark to get him out of both your lives and relieve herself of the legitimate debt and you of an annoying ex boyfriend

he will only be out one girlfriend, out of the country and out the remainder of the principle sum on a legitimate loan

what a great idea!

so why not consider doing the honorable thing?

why don't you pay him back and you take over the debt ?

its clear you are such a nice man and are so concerned about her welfare that you seek advise of the old timers on a ex-pat forum, you could even give the money to her interest free.

then she would be very happy with you, the ex boyfriend will be more happy but will still be a little bit upset at her betrayal but will have no genuine reason to be pestering you both

then you can take the high road to a happy ending........ until she dumps you to relieve herself of the debt to you

the circle of life in Thailand continues...........

[needforspeed]

He can only use the law to force her to pay if he has a contract. The contract cannot state interest of more than 15%pa or 1.25%pm – the court will reduce any higher amount in the contract to this figure. My personal view is that 5%pm is too high (though very common) and that 3%pm is fair, though still considered too high by Thai law.

Not agree, most pawn shop have a interest rate of 2 % a month.

It isn't about the Law, important is if this been enforced and the answer is no.

Small cases like this never make it to court in Thailand.

Second this guy is a foreigner with no licence to lend money, no business and on a tourist visa.

When he is going to the police they most likely going to fine him because illigally running a lender business.

So i stay with my previous post, offer him 1% or change telephone number.

[slapout]

People here seem to see only the dark side of every story.

She's trying to pay back, isn't it a positive point?

If the OP want to help and trust his gf, he may pay back the loan in full and ask the gf to pay him back every month what she can reasonably afford and at 0% interest.

Now I would investigate first what was the story behind the loan, due diligence as it's usually called.

I did not get the impression that the gf was trying to pay back the loan (it would take most of her salary). Why would anyone, as a boyfriend of any woman, take it upon himself to pay off a loan for her, via her, to her ex boyfriend? If he wants to pay off the loan, go to the lender direct (ex boyfriend), and he can negotiate direct, pay the loan off, or decide to walk away. Sounds like all parties concede it was a loan so handle it like you would if the bank/loan company held the paper. How would you handle it if the lender was the local abbot, immediate family, local loan shark, etc? If the two of you cannot figure a way to combine resources to make monthly pay back, neither is trying very hard.

[dave111223]

Maybe you should increase her salary?

[cardholder]

Dont pay back the money. The ex boyfriend knows the rules, don't lend money if you can't afford to lose it. His fault for lending it out in the first place. And what's he going to do about it? Nothing he can do!

He could sell the gold he is holding.

Anybody seen the OP

Edited November 28, 2010 by cardholder

[needforspeed]

He can only use the law to force her to pay if he has a contract. The contract cannot state interest of more than 15%pa or 1.25%pm – the court will reduce any higher amount in the contract to this figure. My personal view is that 5%pm is too high (though very common) and that 3%pm is fair, though still considered too high by Thai law.

The 15% is also incorrect.

1. Interest rates,fines and other service charges

Maximum 28% per year

1.1 Interest rates

Salaried customers

Self-Employed customers

Loan amount THB 20,000 - 80,000

MLR + 18.75% per year

MLR + 18.75% per year

Loan amount THB 80,001 - 200,000

MLR + 16.75% per year

MLR + 17.75% per year

Loan amount THB 200,001 and above

MLR + 14.75% per year

MLR + 16.75% per year

1.2 Fines

Overdue Interest

Adjust to 27 % per year for over due principal

1.3 Fees

Arrangement Fee

0.5 % of loan amount

Loan Disbursement Fee

THB 30

2. Expenses paid to Government Entities

2.1 Stamp Duty

0.05 % of loan amount

[orchis]

ask for the guy's work permit.

[needforspeed]

I Gues the OP is the Ex boyfriend

[cardholder]

He can only use the law to force her to pay if he has a contract. The contract cannot state interest of more than 15%pa or 1.25%pm – the court will reduce any higher amount in the contract to this figure. My personal view is that 5%pm is too high (though very common) and that 3%pm is fair, though still considered too high by Thai law.

The reality of life, particularly in the villages, is somewhat different.

[timekeeper]

mental note to self:

do not lend money to anyone, (but particularly to farangs on TV)

in a these few short paragraphs i have noted that some farangs will use any scheme no matter how morally low to avoid paying back the legitimately loaned money including, reporting a Farang to and about :

police, work permits, immigration, lawyers, deportation, intimidation, legal retribution, loan sharking and more

you should be ashamed of yourselves

[Loz]

no, anyone lending money to a thai girlfriend and expecting it back, HE should be ashamed of himself for not knowing the rules.

Lend means give.

time and money are both vague notions in the mind of many thais. This is a legitimate observation based on nearly 5 years living among these people. arrange a time, don't expect them to be there. lend money, don't expect to get it back. This is the way of the Thai.

[slapout]

mental note to self:

do not lend money to anyone, (but particularly to farangs on TV)

in a these few short paragraphs i have noted that some farangs will use any scheme no matter how morally low to avoid paying back the legitimately loaned money including, reporting a Farang to and about :

police, work permits, immigration, lawyers, deportation, intimidation, legal retribution, loan sharking and more

you should be ashamed of yourselves

Have to agree with timekeeper. Those who try to blame the lender for the predicament of the borrower and subsequently her latest bf, may be the same individuals who point out the corruption/scams so prevalent in Thailand. The thought process displayed toward a debt repayment on this topic could be indicative of the sense of honesty/fair play of some of TV's finest.

[cardholder]

no, anyone lending money to a thai girlfriend and expecting it back, HE should be ashamed of himself for not knowing the rules.

Lend means give.

time and money are both vague notions in the mind of many thais. This is a legitimate observation based on nearly 5 years living among these people. arrange a time, don't expect them to be there. lend money, don't expect to get it back. This is the way of the Thai.

This is why lenders, quite rightly, take security.

[JurgenG]

mental note to self:

do not lend money to anyone, (but particularly to farangs on TV)

in a these few short paragraphs i have noted that some farangs will use any scheme no matter how morally low to avoid paying back the legitimately loaned money including, reporting a Farang to and about :

police, work permits, immigration, lawyers, deportation, intimidation, legal retribution, loan sharking and more

you should be ashamed of yourselves

Sadly agree with you.

Unfortunately as the Baht is getting stronger and stronger, I'm afraid we'ere going to see more and more desperate farangs trying more and more desperate scams jut trying to survive.

[Thaigreg]

NEVER a borrower or lender Be!

[lomatopo]

NEVER a borrower or lender Be!

Close...

"Neither a borrower nor a lender be,

Polonius, speaking to his son, goes on...

For loan oft loses both itself and friend,

And borrowing dulls the edge of husbandry."

(husbandry = responsible money management)

[Forethat]

People here seem to see only the dark side of every story.

She's trying to pay back, isn't it a positive point?

She say's she cant pay, doesn't she?

Keep in mind there are planty of countries where not being able to pay back can result in imprisonment. If she can't pay back it means there's a dark side to the story. Personally, I dont have any loans other than what I ramp up monthly using my AMEX card, but I have hunch even AMEX would smile if I first didn't pay a then called them up and asked them to see the bright side "at least I'm TRYING to pay back, isn't that a positive point..!"

Curtains...

Edited November 28, 2010 by Forethat

[JurgenG]

no, anyone lending money to a thai girlfriend and expecting it back, HE should be ashamed of himself for not knowing the rules.

Lend means give.

time and money are both vague notions in the mind of many thais. This is a legitimate observation based on nearly 5 years living among these people. arrange a time, don't expect them to be there. lend money, don't expect to get it back. This is the way of the Thai.

Reflects sadly on the people you chose to associate with.

We lent money (interest free) to one neighbour to buy a motorcycle, it was pay back in full and on time.

We lent money (interest free) to an other neighbour who failed pray to a loan shark (same story as the OP). It took longer time than expected and we had to be creative in the ways of the repayment (give her small jobs ... ) but she eventually paid us back.

Unfortunately a taxi driver we know failed to ask us for money to help pay him back the mortgage for his taxi, and lost it. This guy has been so helpful and so reliable for us than even if it had taken years to repay us, we would have been more than happy to help him.

As I said, just depends of the people you chose to associate with.

To be honest I help someone a while ago, never saw my money back. It was a French guy, a sketch artist from Montmartre. But I didn't know in French sketch is spelled s _c_a._m.

Edited November 28, 2010 by JurgenG

[Forethat]

no, anyone lending money to a thai girlfriend and expecting it back, HE should be ashamed of himself for not knowing the rules.

A couple of years ago a Bangkok resident "expat" began complaining about everything Thai. People, food, society, culture - you name it. In every situation this guy used the word Thai-lok. Thai-lok this and Thai-lok that. He spoke so bad about Thais I felt embarrased at more than one occasion. So, one day he announces he's moving back to where he came from. During the process of moving he told me he ended up a little short on cash due to transferring his money back home, so he needed to borrow some money over a weekend to settle a couple of depts and business transactions.

You can probably figure out the rest - a perfect case of the classic Farang-lok.

And YES, I feel ashamed.

Edited November 28, 2010 by Forethat

[Kwasaki]

" cardholder " has a the best thought here " gold " or the Ex is holding something of value.

If his not holding everything then it's up to her whether she pays it back.

Until a reaction reply from the " Poster " there's only guessing the real situation.

Maybe is best no lawyers involved.

[GooEng]

how much money are we talking about here???