Loan Sharks

[boone57]

My GF is claiming she pays some one 3000 baht per month interest on a 60,000 B loan. That's 60% interest anually. I am telling her to go to the police as she claims she has already paid 144,000 over a four year period. I ask her how she could accept such an agreement and she gets all quite. Arn't there laws here about Loan Sharking the same as there would be laws against backmail in any society?

[DLock]

5% per month is not unusual.

Extortionate, but not unusual.

Don't get involved. This is very normal for Thai's...and don't even consider paying it back on her behalf.

[soi41]

Seems like another relationship full of trust! "My GF claims". She is probably telling the sad truth, and as she accepted the terms, when taking the loan, why blame it on the loanshark??

If she's a keeper, pay the loan back in full and reduce the allowance until, you have got your money back. As for involving the "long arm of the law"

[cgphuket]

If the loanshark has cut in the police, going to them will do no good and endanger her. Better to move and go underground for a bit.

[ThaidDown]

5%/month for an unsecured loan from the local 'loan shark' is actually quite reasonable. It could be as much as 10-20%/month.

Yes it is illegal, cannot remember what the max allowed rate is but it is much lower than 60%/year.

If you do go to the police you will, of course, have to back up the allegations by providing a copy of the loan agreement and receipts showing the repayments made. It would be very unusual if you had any of these.

Also you could upset the lender, and depending on who they are, could have serious repercussions. Stay out of it or get her to negociate a get out fee, could still be as much as 60,000.

[Farma]

Good luck if you take the police route. I know the "2 men wearing black full face helmets" pay the cops a sweetener for each area they take collections in. They aren't shy to hit little old ladies or anyone else for that matter as I previously posted in a thread about them.

[mogandave]

If she borrowed the money and agreed to the interest, what's the big deal? She should make good on the debt. If she is your GF and not just another sausage-casing why not just square the debt and be done with it?

[boone57]

_{Thanks for the replies. You guys are a wealth of information. Got what I needed. Thanks all.}

[thaipod]

It's usually 20% . and normally Pakistanis well in my soi anyway and bars in Sukhumvit

[boone57]

If she borrowed the money and agreed to the interest, what's the big deal? She should make good on the debt. If she is your GF and not just another sausage-casing why not just square the debt and be done with it?

I just got this fantastic idea! You said 60,000B ($2000) is no big deal to you. Well it is to me and it would really help me out of a bind. You would be a hero in our family forever and many many thanks in advance. I don't even want her to know I posted about this so I am giving you my bank info Daniel Tyler, acc # 980-6-57204-1 Krung Thai Bank. Man your the greatest, thank the lord for big fish.

Sincerely

Daniel

[Dancealot]

If she borrowed the money and agreed to the interest, what's the big deal? She should make good on the debt. If she is your GF and not just another sausage-casing why not just square the debt and be done with it?

I just got this fantastic idea! You said 60,000B ($2000) is no big deal to you. Well it is to me and it would really help me out of a bind. You would be a hero in our family forever and many many thanks in advance. I don't even want her to know I posted about this so I am giving you my bank info Daniel Tyler, acc # 980-6-57204-1 Krung Thai Bank. Man your the greatest, thank the lord for big fish.

Sincerely

Daniel

If you were not the OP, this would be a silly post.

20% is indeed the going rate. She's safe because (her 5%) is not the weekly interest.

The main goal for her is put B60K on the table in 1 visit. Shake hands, smile and walk away.

If she was my GF i would do that for her. Despite the dangers involved.

1 of my terms for helping her would be for her never to borrow or gamble again.....

Good luck Mr. Boone..

Edited April 13, 2013 by Dancealot

[arthurwait]

If she borrowed the money and agreed to the interest, what's the big deal? She should make good on the debt. If she is your GF and not just another sausage-casing why not just square the debt and be done with it?

I just got this fantastic idea! You said 60,000B ($2000) is no big deal to you. Well it is to me and it would really help me out of a bind. You would be a hero in our family forever and many many thanks in advance. I don't even want her to know I posted about this so I am giving you my bank info Daniel Tyler, acc # 980-6-57204-1 Krung Thai Bank. Man your the greatest, thank the lord for big fish.

Sincerely

Daniel

If you were not the OP, this would be a silly post.

20% is indeed the going rate. She's safe because (her 5%) is not the weekly interest.

The main goal for her is put B60K on the table in 1 visit. Shake hands, smile and walk away.

If she was my GF i would do that for her. Despite the dangers involved.

1 of my terms for helping her would be for her never to borrow or gamble again.....

Good luck Mr. Boone..

Which if course will never happen. It will just be until the next time.

OP there are 2 scenarios here :

1. There is no debt and it's a con.

or

2. She will almost certainly do it again (that is if the loan shark actually lets it be paid of in full). Walk away from the loan shark and the girl unless you want a life of misery.

[p_brownstone]

If she borrowed the money and agreed to the interest, what's the big deal? She should make good on the debt. If she is your GF and not just another sausage-casing why not just square the debt and be done with it?

I just got this fantastic idea! You said 60,000B ($2000) is no big deal to you. Well it is to me and it would really help me out of a bind. You would be a hero in our family forever and many many thanks in advance. I don't even want her to know I posted about this so I am giving you my bank info Daniel Tyler, acc # 980-6-57204-1 Krung Thai Bank. Man your the greatest, thank the lord for big fish.

Sincerely

Daniel

Read The Post.

He never said Baht 60,000.- is "no big deal" - he said the girlfriend took the Loan and agreed to the interest rate, implying that it's too late to bleat now about an unfair Interest rate.

Patrick

[breadbin]

Let me guess...

You gf has no money and her family are sick?

Maybe need books for younger sister brothers wife's family?

Dear oh dear

Farang making himself look very silly again.

[bunnaag]

If she borrowed the money and agreed to the interest, what's the big deal? She should make good on the debt. If she is your GF and not just another sausage-casing why not just square the debt and be done with it?

I just got this fantastic idea! You said 60,000B ($2000) is no big deal to you. Well it is to me and it would really help me out of a bind. You would be a hero in our family forever and many many thanks in advance. I don't even want her to know I posted about this so I am giving you my bank info Daniel Tyler, acc # 980-6-57204-1 Krung Thai Bank. Man your the greatest, thank the lord for big fish.

Sincerely

Daniel

If you were not the OP, this would be a silly post.

20% is indeed the going rate. She's safe because (her 5%) is not the weekly interest.

The main goal for her is put B60K on the table in 1 visit. Shake hands, smile and walk away.

If she was my GF i would do that for her. Despite the dangers involved.

1 of my terms for helping her would be for her never to borrow or gamble again.....

Good luck Mr. Boone..

She will borrow and gamble again

[somchaismith]

No shark would loan that amount, unsecured.

[DLock]

No shark would loan that amount, unsecured.

Correct.

This amount is probably on a land title (maybe 50% of the value) or a car...and the Loanshark is holding the Title or Bluebook.

She just needed the loan quickly, probably because she was getting squeezed by a gambling debt.

Oh, how I wish I was a Newbie again. Life was much simpler then.

[mogandave]

If she borrowed the money and agreed to the interest, what's the big deal? She should make good on the debt. If she is your GF and not just another sausage-casing why not just square the debt and be done with it?

I just got this fantastic idea! You said 60,000B ($2000) is no big deal to you. Well it is to me and it would really help me out of a bind. You would be a hero in our family forever and many many thanks in advance. I don't even want her to know I posted about this so I am giving you my bank info Daniel Tyler, acc # 980-6-57204-1 Krung Thai Bank. Man your the greatest, thank the lord for big fish.

Sincerely

Daniel

It is amusing that you up-graded her status from girlfriend to "family" in the same paragraph you indicated she is no big deal.

Get a new sausage-casing and move on chiseler.

[Goong Chae Nam Pla]

Has there been any mention of buffalos yet?

[meatboy]

No shark would loan that amount, unsecured.

there must be a guarantor somewhere along the line,ask her who it is,that way you might find out if she's telling you the truth.

[h90]

Let me guess...

You gf has no money and her family are sick?

Maybe need books for younger sister brothers wife's family?

Dear oh dear

Farang making himself look very silly again.

So much bad luck.....I just heard the families buffalo coughing...hope it does not get sick and need an expensive vet.

[balloon chaser]

I see nothing wrong with loan sharks. They provide a valuable service.

[Keith67]

No shark would loan that amount, unsecured.

there must be a guarantor somewhere along the line,ask her who it is,that way you might find out if she's telling you the truth.

No guarantor required if she borrowed it from the motorbike loansharks on the Honda CBR150's you see floating around, but the downside is they have no problems in taking her into the farms and making use of their fists, feet or motorbike helmets for non-payment issues, the lagal rate in Thailand is B5 per B100 borrowed but most paperwork will have no interest rate written on it that is done by word of mouth so no police proof would exist. Aso you should check to see if she is in fact paying the loan back monthly or just the interest as many pay the interest for years and still owe the amount borrowed.

[FunFon]

Keith67, on 14 Apr 2013 - 12:10, said:

the lagal rate in Thailand is B5 per B100 borrowed

-

Is that quoted in the law as per month?

If so, that's 80% per year if the principle isn't paid off . . .

Edited April 14, 2013 by FunFon

[Keith67]

Keith67, on 14 Apr 2013 - 12:10, said:

the lagal rate in Thailand is B5 per B100 borrowed

-

Is that quoted in the law as per month?

If so, that's 80% per year if the principle isn't paid off . . .

Yes it's a monthly rate but also remember the reality is more likely to be B7-10 per B100 borrowed. A used car tent will quote interest as sometimes higher than this and the rates will be stated on the parperwork due to this being a different type of agreement, The OP if he is really concerned needs first to find who she borrowed the money from and also what the agreement is and not the agreement on paper the agreement in reality, but that is easier said than done as she will not want to come accross as stupid for agreeing to it in the first place.

[FunFon]

My ex-wife hasn't found anything cheaper than 3%, but apparently got closer to 70% of the value (price she paid) of the land she's pledging as collateral.

So I guess that's a pretty good deal, as the interest payments (which I'll be responsible for) will come to less than what most of my neighbors back home are paying for TV/internet per month.

And hopefully I'll be able to pay down the principle pretty fast once the higher-priority (and larger) debts have been paid off.

Edited April 14, 2013 by FunFon

[FunFon]

balloon chaser, on 14 Apr 2013 - 11:56, said:

I see nothing wrong with loan sharks. They provide a valuable service.

-

I agree, except for when violent methods are used when the debtor isn't able to make the payments on time.

The western model of forcing the lender to build the default rate into their overall overhead expenses seems to work well, until the government then reneges on their obligation for effective oversight of the industry and the whole thing falls apart.

[monty1412]

Has there been any mention of buffalos yet?

Great point, no mention of buffalos either well or sick and no mention of hubs of any type...must be coming soon

[technologybytes]

Is it not possible that the girl is telling the truth, that the guy genuinely cares for her and is just looking for some advice about what the options are!

Why does everyone assume its a gambling debt and that she is up to no good and he's stupid??

Edited April 14, 2013 by technologybytes

[terry9275]

Hi my friend. forget going to the police , and how long have you known your girl friend, tread wary my friend, my advice is walk away and find another GF.there are many many to be found

There is a saying in Thailand Why buy the Book , when there is a Library full of them