Crackdown On Loan Sharks

[Jai Dee]

THE ANTI-MONEY LAUNDERING OFFICE IS READY TO CONFISCATE ASSETS OF LOAN SHARKS NATIONWIDE

The Secretary-General of the Anti-Money Laundering Office has initiated a plan to confiscate assets of persons who charge higher-than-normal interest rates from borrowers of their money.

Police Major-General Peeraphan Prempooti (พีรพันธุ์ เปรมภูติ) says the confiscation will be conducted on loan sharks throughout the country within six months. The move follows complaints from those falling prey to the unconventional loan system while authorities are compiling more evidence against unethical money providers.

Police Maj-Gen Peeraphan says he has circulated a letter to the Customs Department, the Interior Ministry and the Bangkok Metropolitan Administration asking them to look out for placards or posters advertising that urgent loans are available. Owners of such advertisement will be called to pay poster tax while the Anti-Money Laundering Office will take legal action against money owners who usually force victims of such ads to accept high interest deals.

At present, the Anti-Money Laundering Office is working on a tip from the Prosecution Department which unveils that a drug trafficker at the Khlong Toey congested community is providing loans he earned from the illicit trade, to employees of the Thailand Tobacco Monopoly. If the report is true, the man will also face a criminal charge relating to money-laundering.

Source: thaisnews.com ประจำวันพฤหัสบดีที่ 29 กันยายน 2548

[Neeranam]

THE ANTI-MONEY LAUNDERING OFFICE IS READY TO CONFISCATE ASSETS OF LOAN SHARKS NATIONWIDE

They are ready but will never do it, Jai Dee.

This is not any breaking news.

An MP says he is thinking about something, or ready to try something, translated means the public would love to see it happen but he is not willing to do it as he has other interests.

Edited September 30, 2005 by Neeranam

[Braccobaldo]

In a near city from where I live the major loan-shark is the boss of local police....no need to add more....

[pnustedt]

The Secretary-General of the Anti-Money Laundering Office has initiated a plan to confiscate assets of persons who charge higher-than-normal interest rates from borrowers of their money.

And higher-than-normal is? . . .

[ilyushin]

Most are (loy la ee) 20 baht interest for every 100. Guess that is normal.

[Khun Jean]

Most are (loy la ee) 20 baht interest for every 100.   Guess that is normal.

<{POST_SNAPBACK}>

And to add a little more weight to that.

It is not 20% per year but per month!!

[mouse]

They should also look at Petrol stations and Grocery stores that are charging 10% and up, interest per month, on oustanding amounts. I asked my wife and found that this has been a common practive for years and that some are getting rich on such schemes.

One example is a family that provides groceries to workers within numerous Bangkok construction sites. While the bread winners drink and gamble away their earnings, their spouses are often forced to buy foods on credit driving the families deeper and deeper into debt. Many can of course get a village loan through the Government to get them out of this mess. You see where this is going? They get deeper and deeper into debt!

[expatinasia]

"Many can of course get a village loan through the Government to get them out of this mess."

Tell me, Mouse, how can a government loan solve the problem of an alcoholic and gambling addicted husband? How could you write such cr@p?

[britmaveric]

"Many can of course get a village loan through the Government to get them out of this mess."

Tell me, Mouse, how can a government loan solve the problem of an alcoholic and gambling addicted husband?  How could you write such cr@p?

<{POST_SNAPBACK}>

One shouldnt exclude the problem of an alcoholic and gambling addicted wife either!!!

[TizMe]

THE ANTI-MONEY LAUNDERING OFFICE IS READY TO CONFISCATE ASSETS OF LOAN SHARKS NATIONWIDE

The Secretary-General of the Anti-Money Laundering Office has initiated a plan to confiscate assets of persons who charge higher-than-normal interest rates from borrowers of their money.

What's the cut-off point, 5% per month, 10%, 20%?

Surely as long as the person entering into the loan agreement knows the cost prior to receiving the loan then no laws have been broken?

Thailand is hardly known for it's consumer protection laws.

[craigt3365]

When I first came to Thailand 4 years ago I read about them wanting to do the same thing...crack down on these loan sharks. Nothing happened. Like was previously mentioned, the head honchos in the village are usually behind it...and they will never get into any trouble. Doing business like this is just a way of life in Thailand.

[LoveDaBlues]

My GF's dad will pay 2500 USD interest on a truck that cost 2500 USD. Over a 3 year period. After reading these posts sounds like not a bad deal compared to some of the loans out there.

I guess I should say I'll pay the interest as I'm now making the truck payment each month

[Heng]

^The interest won't accrue if you just pay it off. Just like any bank. Ah, but then GF's dad might want a new truck, or worse yet a boat or something. Therein lies the problem. The "bank" is hardly the what is wrong in these types of situations.

[Neeranam]

I spoke to a guy who leant money to Isaan workers going to the middle east. he leant them 200,000 B and they paid him back 20% a month, which is the norm. Takes them about 2 years to pay him back and then they get there 3rd year wages to themselves. He makes a ###### of a lot of money, obviously.

[mijan24]

In the Soi where I "had" lived on and off for the past 7+ years the local money lender charges up to 60% interest - last year when quite a few of the residents applied for the Government bail out scheme they were required to declare who they owed money to. Of course the same name kept cropping up as the money lender the same money lenders siblings are very active in the regular card games & of course are not backward in extending credit to the losing fraternity - in summary catch 22 but not a word was said by the official vetting the "bail out scheme applications.

The major scuttlebuck in the Soi was the "money lender and siblings had applied for the scheme too.

Crackdown my ar#e!!!!

[wilko]

Who wants to borrow a fish anyway?

[Jai Dee]

THE GOVT. WILL NOT APPLY THE REGULATIONS ON INSOLVENCY TO SOLVE THE UNCONVENTIONAL LOAN SYSTEM

The Government Spokesperson, Md. SURACHAI SUEBWONGLEE (สุรพงษ์ สืบวงศ์ลี), has affirmed that the government will not apply the regulations on insolvency to solve the unconventional loan system in Thailand.

Last week, Prime Minister THAKSIN SHINAWATRA called a meeting with the officials from Ministry of Finance and other related agencies, with an aim to seek solutions to debt problems. At the present, more than 100,000 Thai people have approximately 30 million baht of debt in total. Thus, Government Spokesperson SURACHAI stated that the government will assist both the debt-ridden people and the financial institutes. He also believes that the new government measures will be able to solve debt issues.

Md. SURACHAI added that the Ministry of Finance will propose the issues to deal with debt problems on October 18th. Nevertheless, he insisted that the measures will not concern the regulations on insolvency, as the debtors will have to pay their debts eventually. He said the Ministry of Finance, the Bank of Thailand and other financial institutes will confer about this matter in the future.

Source: thaisnews.com ประจำวันจันทร์ที่ 3 ตุลาคม 2548

[AlexLah]

I am only charging 10 Bath per week per 100 Bath, I think is Ok na?

Alexlah

[a2396]

Does anyone have a rough idea how much money a "shark" would loan an average Thai with a job that paid 6-10,000 bht? How far in debt could they get without putting up collateral??

[mijan24]

Does anyone have a rough idea how much money a "shark" would loan an average Thai with a job that paid 6-10,000 bht? How far in debt could they get without putting up collateral??

<{POST_SNAPBACK}>

a2396 you have identified a very important point " Thai with a job" this does not necessarily come into the equation - less ability to pay more opportunity to plunder and gain!!!

[TizMe]

Does anyone have a rough idea how much money a "shark" would loan an average Thai with a job that paid 6-10,000 bht? How far in debt could they get without putting up collateral??

I would think that any loan from a "shark" would require some form of collateral, mobile phones and jewellery for small loans, house and land titles for large ones.

[mijan24]

Collateral, sometimes other times non-payers are simply advised of what will be taken if payments are not forthcoming.(this can range from household goods to children)

Another part of this "dirty" business is the selling of debts to "collectors" who are not backward in coming forward.