Many Turning To Loan Sharks: Thai Chamber Of Commerce

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SURVEY

Many turning to loan sharks: TCC

PETCHANET PRATRUANGKRAI

THE NATION

BANGKOK: -- The rising cost of living will force consumers whose income is lower than Bt10,000 per month to borrow more from loan sharks, while the Kingdom's public debt will also go up, says the Thai Chamber of Commerce.

The chamber yesterday revealed the results of a survey conducted from March 22-26 on household debt and the impact of the increase in the minimum wage that takes effect this weekend. The survey found that debt grew by 5.7 per cent year on year to Bt168,517 per household, while the ability to make debt payments averaged Bt10,978 per month, said Thanavath Phonvichai, director of the Economic and Business Forecasting Centre of the University of the Thai Chamber of Commerce.

The cost of living has exceeded consumers' income, which has also reduced their savings. This has undermined consumer confidence.

"The respondents believe that the economy has not recovered in the first quarter of this year but [would do so] in the second half." Thanavath said they also expressed worries on whether the Thai economy would recover in the future.

In addition, they expressed concern that government spending on mega-projects and infrastructure would raise the country's public debt from the current level of 41 per cent of gross domestic product to 50 per cent.

Consumers' incomes have not kept up with rising costs. The higher price of goods accounts for 60.2 per cent of this shortfall, rising interest rates 18.5 per cent, soaring fuel prices 10.3 per cent and unexpected factors 10 per cent, the survey found. As a result, people have to use more their savings to hold down debt.

The survey also found that 30.1 per cent of low-income people, mainly those earning Bt10,000 per month or less, had borrowed from loan sharks. This group has high potential to borrow more and raise overall household debt.

Thanavath said rising household debt was not related to the flood crisis last year but mainly derived from the increasing cost of living.

Consumers believe that the minimum-wage increase will force up the price of goods. If the government had no measure to curb energy prices, the centre forecast that inflation would reach 4 per cent this year.

-- The Nation 2012-03-30

[CalgaryII]

".................................................said Thanavath Phonvichai, director of the Economic and Business Forecasting Centre of the University of the Thai Chamber of Commerce"

Everything I have seen associated with this Thai Chamber of Commerce seems an extension of Opposition agenda's, including this one with a Researchy type overlay. This leads me to conclude that these people are 'agenda launderers' for the Opposition, either by design or unwittingly. Meaning having entities other than the Opposition advance their agenda's. Contrarily, and by extension, one could say the same thing for Nitirat, as they certainly advance the agenda of the PTP.

In other national settings, the C. of C. is typically associated with the ultra-Conservative side of the Political Spectrum. This C. of C. is true to that form. The policy statements they support consistently, are therefore as good an indicator as anything, of where the Thai Opposition is positioned on that Spectrum .

Edited March 30, 2012 by CalgaryII

[jonclark]

".................................................said Thanavath Phonvichai, director of the Economic and Business Forecasting Centre of the University of the Thai Chamber of Commerce"

Everything I have seen associated with this Thai Chamber of Commerce seems an extension of Opposition agenda's, including this one with a Researchy type overlay. This leads me to conclude that these people are 'agenda launderers' for the Opposition, either by design or unwittingly. Meaning having entities other than the Opposition advance their agenda's. Contrarily, and by extension, one could say the same thing for Nitirat, as they certainly advance the agenda of the PTP.

In other national settings, the C. of C. is typically associated with the ultra-Conservative side of the Political Spectrum. This C. of C. is true to that form. The policy statements they support consistently, are therefore as good an indicator as anything, of where the Thai Opposition is positioned on that Spectrum .

Yawn...yawn....zzzzzzzzzzzzzzzz

Edited March 30, 2012 by jonclark

[hgma]

loansharks borrow at easy acces.

blinded by the amounts they "can" borrow they don't want to know the cost's.

No paperwork required, anyone can borrow, deaf , dumb or blind.

danger lurks around the corner when more en more debt collectors resort to violence and in some cases ...lethal violence

in many situations loansharks target the remaining family members if a creditor bails out.

all in all a loose-loose situation for all involved.

a public awarness campaign should be launched, but i seriously doubt that will ever happen while many of these sharks are "well placed" public figures.

[exeter]

This has nothing to with the opposition, its afact of life in Thailand, people borrow money as they have always done, have no idea what the rates are, dont plan how to pay it back and collection day is a problem, once you are in the system its difficult to get out but so easy to get into it. The new minimum wage has not helped, most of the borrowers dont get 300bts a day, the true cost of the minimum wage plan has yet to be seen. Be sure the Loan Sharks will on hand to cash in.

[zakk9]

The loan shark system is a disgrace to any country wanting to call itself civilized. It's an absolutely watertight way of keeping the poor population poor. I just had one of the victims on the phone. She's bought a 7,000 baht fridge for 19,000 baht from one of them. Down payment rates are far beyond what any low income girl with a baby can hope to manage. It's illegal of course, but for those who run these businesses, nothing is illegal, and that includes rape, murder and other ways of getting their money back. Thailand 2012.

[whybother]

".................................................said Thanavath Phonvichai, director of the Economic and Business Forecasting Centre of the University of the Thai Chamber of Commerce"

Everything I have seen associated with this Thai Chamber of Commerce seems an extension of Opposition agenda's, including this one with a Researchy type overlay. This leads me to conclude that these people are 'agenda launderers' for the Opposition, either by design or unwittingly. Meaning having entities other than the Opposition advance their agenda's. Contrarily, and by extension, one could say the same thing for Nitirat, as they certainly advance the agenda of the PTP.

In other national settings, the C. of C. is typically associated with the ultra-Conservative side of the Political Spectrum. This C. of C. is true to that form. The policy statements they support consistently, are therefore as good an indicator as anything, of where the Thai Opposition is positioned on that Spectrum .

...

words fail me.

[noitom]

We never see any loan sharks getting busted and convicted. They thrive on getting the chanotes for the family land as collateral, and then all the family members scurry about trying to pay the vig which never gets reduced and finally they default on the vig. Then the loan sharks acquire the chanote and slide Mr. Big his skim.

[h90]

The loan shark system is a disgrace to any country wanting to call itself civilized. It's an absolutely watertight way of keeping the poor population poor. I just had one of the victims on the phone. She's bought a 7,000 baht fridge for 19,000 baht from one of them. Down payment rates are far beyond what any low income girl with a baby can hope to manage. It's illegal of course, but for those who run these businesses, nothing is illegal, and that includes rape, murder and other ways of getting their money back. Thailand 2012.

And why didn't she buy a regular cheap fridge?

[QED]

loansharks borrow at easy acces.

blinded by the amounts they "can" borrow they don't want to know the cost's.

No paperwork required, anyone can borrow, deaf , dumb or blind.

danger lurks around the corner when more en more debt collectors resort to violence and in some cases ...lethal violence

in many situations loansharks target the remaining family members if a creditor bails out.

all in all a loose-loose situation for all involved.

a public awarness campaign should be launched, but i seriously doubt that will ever happen while many of these sharks are "well placed" public figures.

Dumb post. Probably better to know something about the subject before commenting.

Do you really think anyone will lend money here without paperwork? OK may a few thousand between bargirls, but come on...

[Phatcharanan]

".................................................said Thanavath Phonvichai, director of the Economic and Business Forecasting Centre of the University of the Thai Chamber of Commerce"

Everything I have seen associated with this Thai Chamber of Commerce seems an extension of Opposition agenda's, including this one with a Researchy type overlay. This leads me to conclude that these people are 'agenda launderers' for the Opposition, either by design or unwittingly. Meaning having entities other than the Opposition advance their agenda's. Contrarily, and by extension, one could say the same thing for Nitirat, as they certainly advance the agenda of the PTP.

In other national settings, the C. of C. is typically associated with the ultra-Conservative side of the Political Spectrum. This C. of C. is true to that form. The policy statements they support consistently, are therefore as good an indicator as anything, of where the Thai Opposition is positioned on that Spectrum .

What a nonsense post. Jeeeez.

[Payboy]

I guess we can call the banks loan piranhas.

[redroo]

I'am a loan kangaroo

[zakk9]

The loan shark system is a disgrace to any country wanting to call itself civilized. It's an absolutely watertight way of keeping the poor population poor. I just had one of the victims on the phone. She's bought a 7,000 baht fridge for 19,000 baht from one of them. Down payment rates are far beyond what any low income girl with a baby can hope to manage. It's illegal of course, but for those who run these businesses, nothing is illegal, and that includes rape, murder and other ways of getting their money back. Thailand 2012.

And why didn't she buy a regular cheap fridge?

Because she needs money to do that, and she doesn't have any. But there are always people coming to the village who can "help", and since there are millions of people in Thailand who are completely uninformed with regards to what other options may exist and what rights they have, they sign papers that will tie them to the loan shark for years or decades.

[bendix]

The loan shark system is a disgrace to any country wanting to call itself civilized. It's an absolutely watertight way of keeping the poor population poor. I just had one of the victims on the phone. She's bought a 7,000 baht fridge for 19,000 baht from one of them. Down payment rates are far beyond what any low income girl with a baby can hope to manage. It's illegal of course, but for those who run these businesses, nothing is illegal, and that includes rape, murder and other ways of getting their money back. Thailand 2012.

I assume your contempt of these outfits also includes those in other uncivilised countries such as the UK and America, where pay day loan companies charging APRs of several thousand per cent interest operate very openly, advertise on TV and in the mainstream media and - in some cases - even sponsor Premier League football clubs, with their company names proudly on the players' shirts.

[ozyjon]

My girl (and she's only 19yrs old) got into the game (with my money) lending out 50 000 Bht to one 20 000 Bht to another no paperwork just word of mouth, promises, and lots of smiles, there is a network out there for these people and if you don't pay the money back, then big problems can find you, she finally got all her money back with interest but now refuses to lend as people

do default, then how do you get the money back, or do you end up with the goods they bought, an old tv, broken pick up, rusty fridge the loan sharks do have problems its their business and they protect themselves usually with big ugly goons.

[telldem]

I'm a loan buffalo.

Posted with Thaivisa App http://apps.thaivisa.com

[finnomick1]

...or could they be referring to the soon-to-be-issued farmers' credit cards ?

[finnomick1]

.....and I'm the loan ranger ( did anyone else write this )

[Skywalker69]

The government is soon to be the biggest loan-sharks.

[Heng]

Too bad most folks are more than willing to turn to buying things on interest instead of turning to self discipline and getting by with what they have.

[allan michaud]

loansharks borrow at easy acces.

blinded by the amounts they "can" borrow they don't want to know the cost's.

No paperwork required, anyone can borrow, deaf , dumb or blind.

danger lurks around the corner when more en more debt collectors resort to violence and in some cases ...lethal violence

in many situations loansharks target the remaining family members if a creditor bails out.

all in all a loose-loose situation for all involved.

a public awarness campaign should be launched, but i seriously doubt that will ever happen while many of these sharks are "well placed" public figures.

Dumb post. Probably better to know something about the subject before commenting.

Do you really think anyone will lend money here without paperwork? OK may a few thousand between bargirls, but come on...

A bit unfair, apart from the "no paperwork required" (id card is enough) comment the rest, violence, targeting remaining families, public figures, is all pretty damned accurate.

[SNGLIFE]

I recently suggested the Mrs. make THB 100k "loans" secured by chanote. The deal would be structured as a legal purchase of the land for 100k and the "borrower" would be able to buy the land back for 100k +10% "interest" if bought back within 6 months or 20% interest if bought back after 6 months, but before 12 months. After 12 months, they lose the option to buy it back and the wife keeps it (having already transfered it to her name when she forked over the money).

What's so "illegal" about that.

WE all know what happens when the minimum wage goes up (40% +/-?). The land rich but cash poor in the country start looking to monetize their land to keep up with the cost of living. Morality aside, exploiting that is simply good capitalism.

[MAJIC]

The loan shark system is a disgrace to any country wanting to call itself civilized. It's an absolutely watertight way of keeping the poor population poor. I just had one of the victims on the phone. She's bought a 7,000 baht fridge for 19,000 baht from one of them. Down payment rates are far beyond what any low income girl with a baby can hope to manage. It's illegal of course, but for those who run these businesses, nothing is illegal, and that includes rape, murder and other ways of getting their money back. Thailand 2012.

I assume your contempt of these outfits also includes those in other uncivilised countries such as the UK and America, where pay day loan companies charging APRs of several thousand per cent interest operate very openly, advertise on TV and in the mainstream media and - in some cases - even sponsor Premier League football clubs, with their company names proudly on the players' shirts.

Do enlighten us..........which Companies in the UK & USA,charge "APRs of several thousand percent interest"

[h90]

The loan shark system is a disgrace to any country wanting to call itself civilized. It's an absolutely watertight way of keeping the poor population poor. I just had one of the victims on the phone. She's bought a 7,000 baht fridge for 19,000 baht from one of them. Down payment rates are far beyond what any low income girl with a baby can hope to manage. It's illegal of course, but for those who run these businesses, nothing is illegal, and that includes rape, murder and other ways of getting their money back. Thailand 2012.

And why didn't she buy a regular cheap fridge?

Because she needs money to do that, and she doesn't have any. But there are always people coming to the village who can "help", and since there are millions of people in Thailand who are completely uninformed with regards to what other options may exist and what rights they have, they sign papers that will tie them to the loan shark for years or decades.

you can buy a small second hand fridge for a few hundred Baht. If she does not has a few hundred Baht she don't need a fridge because she anyway can't buy something to put in.

And my guess is, that not fridges are the problem, but mobile phones.

[geriatrickid]

Yawn...yawn....zzzzzzzzzzzzzzzz

why is it whenever someone cannot rebut a position with something intelligent, they resort to a childish comment?

If you disagree, please share why you do.

I happen to disagree in part and believe if anything this position indirectly supports the government's policy to boost minimum wages and to encourage exports by adjusting the value of the baht. Increased exports increase government revenues and allow additional spending on programs.

Not sayng I agree with the strategy, but that's basically what they are looking at.

[geriatrickid]

I recently suggested the Mrs. make THB 100k "loans" secured by chanote. The deal would be structured as a legal purchase of the land for 100k and the "borrower" would be able to buy the land back for 100k +10% "interest" if bought back within 6 months or 20% interest if bought back after 6 months, but before 12 months. After 12 months, they lose the option to buy it back and the wife keeps it (having already transfered it to her name when she forked over the money).

What's so "illegal" about that.

WE all know what happens when the minimum wage goes up (40% +/-?). The land rich but cash poor in the country start looking to monetize their land to keep up with the cost of living. Morality aside, exploiting that is simply good capitalism.

No, it's a recipe to to be found murdered in your home.

It is not particularly ethical and it is behaviour like that which encourages government intervention.

One can be a capitalist and still have business ethics.

[connda]

Food and Energy is factored out of the Thai CPI statistics. There is no inflation. The common folk are just whining too much. They're probably spending all there money of lottery tickets.

/sarcasm off

[kjhbigv]

The loan shark system is a disgrace to any country wanting to call itself civilized. It's an absolutely watertight way of keeping the poor population poor. I just had one of the victims on the phone. She's bought a 7,000 baht fridge for 19,000 baht from one of them. Down payment rates are far beyond what any low income girl with a baby can hope to manage. It's illegal of course, but for those who run these businesses, nothing is illegal, and that includes rape, murder and other ways of getting their money back. Thailand 2012.

I assume your contempt of these outfits also includes those in other uncivilised countries such as the UK and America, where pay day loan companies charging APRs of several thousand per cent interest operate very openly, advertise on TV and in the mainstream media and - in some cases - even sponsor Premier League football clubs, with their company names proudly on the players' shirts.

Do enlighten us..........which Companies in the UK & USA,charge "APRs of several thousand percent interest"

A quote in the UK Guardian was "1700% or more"

http://www.guardian.co.uk/money/2011/dec/07/payday-loan-companies-tougher-regulation

[MAJIC]

The loan shark system is a disgrace to any country wanting to call itself civilized. It's an absolutely watertight way of keeping the poor population poor. I just had one of the victims on the phone. She's bought a 7,000 baht fridge for 19,000 baht from one of them. Down payment rates are far beyond what any low income girl with a baby can hope to manage. It's illegal of course, but for those who run these businesses, nothing is illegal, and that includes rape, murder and other ways of getting their money back. Thailand 2012.

I assume your contempt of these outfits also includes those in other uncivilised countries such as the UK and America, where pay day loan companies charging APRs of several thousand per cent interest operate very openly, advertise on TV and in the mainstream media and - in some cases - even sponsor Premier League football clubs, with their company names proudly on the players' shirts.

Do enlighten us..........which Companies in the UK & USA,charge "APRs of several thousand percent interest"

A quote in the UK Guardian was "1700% or more"

http://www.guardian....gher-regulation

Shocking how these murky companies,can keep out of the spotlight for so long.