War on loan sharks continues

BANGKOK: -- The Anti-Money Laundering Office (AMLO) has vowed to press ahead with a crackdown on anyone charging illegally-high interest rates.

AMLO chief Police Major General Peeraphan Prempooti said loan sharks could expect tough financial penalties such as the seizure of assets and the imposition of punitive retroactive tax payments. He also said any government official implicated with the illegal practice would not be spared from prosecution.

“ AMLO has seized assets worth 50 million baht from two major loan sharks since early this year, and seven or eight more predatory lenders will soon have their property forfeited,” the AMLO secretary-general said.

General Peeraphan said the measures were meant to protect borrowers from unlicensed, unscrupulous money lenders, but the crackdown did not mean debtors could default on their loans.

“It is not national policy to use state coffers to help debtors repay illegitimate outstanding loans. Debtors are still obliged to pay their debts, but at legal interest rates,” he said.

His comments came after the government approved a three-phase plan to tackle debts incurred outside the legitimate financial system.

The first, year-long phase began on August 19. It is aimed at gathering evidence to allow the prosecution of loan sharks on extortion charges.

The second phrase (August 19 2007-August 19 2008 ) will allow negotiations between loan sharks and their customers on the repayment of debts at legal interest rates. The final phase will seek the amendment of related laws.

--TNA 2005-10-14

Crackdown On Loan Thai Sharks

Er, that should be Crackdown On Thai Loan Sharks then?

Keeping watching for "Shin Corp Loans Inc" appearing suddenly following the crack down.

I think if they seriously cracked down on the gambling dens (and spared no government official from prosecution!), then most of these loans would not happen in the first place!