Loan Sharks

[Keith67]

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??

Of course it is and i have tried to give him that advise, it is also possible that she is telling the truth which means she will be able to produce some kind of paperwork to prove this also. The 2 questions i have for the op are:

If she has been paying this loan for 4 years how is it paid, and why has he only just found out about it?

What does he intend to do about it i.e. Pay the loan for her?

Edited April 14, 2013 by Keith67

[planetdweller]

I wouldn't get involved , if I was you.

[starkey_rich]

I think the loan sharks will be doing a brisk business in the next few years when a lot of Thai's find they can't pay for their shiny new truck.

[khunPer]

5% a month is acutally fairly cheap. Normally the charge is 10% a month for loans. Sometimes, if you have a sort of land deed as security, you may pay the interest as a share of the (rice) harvest on the land, which depending on the harvest may be 60% or more pro annum. Gold shops prawn at 3% a month, when you give gold as sucurity (the will of course not give you full value). If the loan is not fully paid + interest within the agreed period of time, the gold shop sells the gold.

Bank loans are both difficult and takes often long time, so there is a big “market” for alternative loans. However, maximum interest rate on private loans is by law 15% pro annum. Banks and registered loan providers can charge more, around 25% p.a. or more is normal.

Only way to get out from a loan shark will be to help your GF to pay the balance and interest.

[DGS1244]

Don't get involved, walk away while you still can

[rotary]

Change GF in my opinion. There is a reason she got in this bind if she really is in a bind. Better to get rid of the problem right now.

[Neeranam]

DLock, on 12 Apr 2013 - 15:59, said:

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.

Pay it back on her behalf if you want - why not?

[Neeranam]

5% a month is acutally fairly cheap. Normally the charge is 10% a month for loans. Sometimes, if you have a sort of land deed as security, you may pay the interest as a share of the (rice) harvest on the land, which depending on the harvest may be 60% or more pro annum. Gold shops prawn at 3% a month, when you give gold as sucurity (the will of course not give you full value). If the loan is not fully paid + interest within the agreed period of time, the gold shop sells the gold.

Bank loans are both difficult and takes often long time, so there is a big “market” for alternative loans. However, maximum interest rate on private loans is by law 15% pro annum. Banks and registered loan providers can charge more, around 25% p.a. or more is normal.

Only way to get out from a loan shark will be to help your GF to pay the balance and interest.

not true - go somewhere they can't find you and they will probably write it off

[FunFon]

khunPer, on 14 Apr 2013 - 16:10, said:

However, maximum interest rate on private loans is by law 15% pro annum. Banks and registered loan providers can charge more, around 25% p.a. or more is normal.

-

While the other guy says 5% per month is allowed (APR=80), so which is it?

[FunFon]

Neeranam, on 14 Apr 2013 - 16:40, said:

not true - go somewhere they can't find you and they will probably write it off

-

As has been made clear, there is surely collateral pledged on the loan, quite possibly that of family members.

And it's the rare Thai that will completely cut off contact with their family, leaving them to the mercy of violent mafia thugs.

[SDH]

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

MoganDave,

Please can I also have B60,000 as I have numerous debts that require paying, I will go to the temple and make merit ion your behalf, simply send a PM for my account details.

Thanks in advance for your generosity!!!

[lookingeast]

In my experience - which is all in Isaan - 'simple' Thai people have no forward-looking grasp of what getting involved in big loans with horrific interest-rates means. I know of one case (relative) where 400,000 Bt was borrowed from a loan-shark to fund an insane 'MLM' (multi-level-marketing / pyramid) scheme that is being sold in BKK to unwary Isaan folks. where the annual interest came to 192,000 Bt - that's just interest. What's worse, the lender required a charge over the family's only plot of land, so that if the 400,000 wasn't paid back after 1 Year, the family would have to hand over their land and the house on it. They would, in other words, have been DESTITUTE. Now i'd like to ask you all : If you were very close to the completely uninvolved (with the loan) daughter of this family, would you have the (hard) heart to turn away and as members advise - NOT help to pay off the loan to save the situation for all ? Could you really turn away...and still say 'love' ? What i'd call a 'turning-point', and one which comes to many a farang sooner or later.

Edited April 14, 2013 by lookingeast

[lookingeast]

I think the loan sharks will be doing a brisk business in the next few years when a lot of Thai's find they can't pay for their shiny new truck.

They already are :-(

[belg]

OP, it is not your family, you are the ATM of the family

next: sick buffalo, her dad's in hospital (even governement is 30b or even free), etc....

[sandhurstmolonski]

Loan Shark ?? ..Sometimes extended family charge figures like this ..and are commended and appaulded .

If I were you Id keep out of it ..Strongly reccomended.

[senor123]

3% to 10% a month you guys are talking about good deals. Where I live the "helmet man" charges 2% a day for small unsecured loans and you had better head for the hills if you can't pay it back.

[apetley]

3% to 10% a month you guys are talking about good deals. Where I live the "helmet man" charges 2% a day for small unsecured loans and you had better head for the hills if you can't pay it back.

Beat this!

Locally the daily loan rate is 20-30%!!!

Borrow 100 bht in the morning pay back 120 or 130 bht in the evening.

Insane!

[Scully]

Issan where I live is 10% a month 10,000 loan, 1000 baht interest alone just to keep the car, bike, land or whatever.

I lent my ex BIL 50,000 baht on a loan because he was working his backside off and paying most back for interest. He paid me back and gave me an extra payment of 5000 baht as way of thanks, oh and a crate of beer.

Thais are not ALL the same, like you or I, why do people on forums or people I class as friends believe they are only after money?. The percentage of Thai's that are money hungry is a lot but not "ALL".

She maybe telling the truth but statistically speaking she maybe talking crap, only you will know, good luck.

[Andre0720]

It is Shylocking.

And the police will certainly not get involved.

Too risky for themselves and their families..

These loans, legal or not, must be paid off, or the borrower has to disappear for the longest time....

And it is not like these people are hard to find, their business cards are all over town with phone numbers and all...

Edited April 14, 2013 by Andre0720

[FunFon]

lookingeast, on 14 Apr 2013 - 17:38, said:

In my experience - which is all in Isaan - 'simple' Thai people have no forward-looking grasp of what getting involved in big loans with horrific interest-rates means. I know of one case (relative) where 400,000 Bt was borrowed from a loan-shark to fund an insane 'MLM' (multi-level-marketing / pyramid) scheme that is being sold in BKK to unwary Isaan folks. where the annual interest came to 192,000 Bt - that's just interest. What's worse, the lender required a charge over the family's only plot of land, so that if the 400,000 wasn't paid back after 1 Year, the family would have to hand over their land and the house on it. They would, in other words, have been DESTITUTE. Now i'd like to ask you all : If you were very close to the completely uninvolved (with the loan) daughter of this family, would you have the (hard) heart to turn away and as members advise - NOT help to pay off the loan to save the situation for all ? Could you really turn away...and still say 'love' ? What i'd call a 'turning-point', and one which comes to many a farang sooner or later.

-

And it's also sad but true that there are scamming TG + families that will spin just such a story to fleece the kwai farang, once they've been "rescued" a few months later there's another life-threatening disaster by another branch of the close family

"Now I'd like to ask you all : If your beloved's father was going to die of a brain tumour you mean you really wouldn't save his life?"

etc etc until either the guys been totally taken to the cleaners or wised up, in either which case the loving relationships done and she heads back to Pattaya to find the next sucker.

I've seen this game played with truly gorgeous wide-eyed teen cuties, sometimes much bigger long cons, sometimes with the help of lawyers, police and government officials.

Not saying this is true in this case or even most of the time, but is frequent enough that giving warnings of caution is the only responsible thing to do.

And even when the need is genuine, realize that when the family is large and all very poor, the need is also infinite, so unless your resources are infinite or you're willing to end up just as destitute yourself, you do have to learn to harden your heart and draw the line somewhere.

[DLock]

DLock, on 12 Apr 2013 - 15:59, said:

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.

Pay it back on her behalf if you want - why not?

We only know a fraction of the story, so saying pay it off or not pay it off is irrelevant.

The OP has disappeared so I guess we will never know.

But giving Thai's the easy way out is like giving them approval to do it again. They don't learn.

[Keith67]

khunPer, on 14 Apr 2013 - 16:10, said:

However, maximum interest rate on private loans is by law 15% pro annum. Banks and registered loan providers can charge more, around 25% p.a. or more is normal.

-

While the other guy says 5% per month is allowed (APR=80), so which is it?

It is all of them depending on where the loan comes from and who, for instance a bank will have to justify bank rates and charges whereas a motorbike lender or local lended do not, they have only to keep in mind the limit set by the law which is 5% per month for this kind of loan agreement.

[saroq]

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

I'd hate to ever be in the position were 60,000 baht was a big deal. If she's a keeper tell her this is a one time only deal and pay the debt then take it out of her allowance. If you don't give her an allowance that's probably the reason you've been told this story.

[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

I'd hate to ever be in the position were 60,000 baht was a big deal. If she's a keeper tell her this is a one time only deal and pay the debt then take it out of her allowance. If you don't give her an allowance that's probably the reason you've been told this story.

Indeed. It's worth 60K to find out if she's a keeper or not. Fool me once, shame on her. Fool me twice, shame on me...

Edited April 14, 2013 by mogandave

[jossthaifarang]

You know, a lot of you idiots obviously have nothing better to do than to sit around looking for reasons to give people shit!

Yes a lot of you are right, most of the time these woman are loving nothing more than your wallet. However! In some cases it is actually possible to meet a decent woman who just so happens to have made the wrong choice's in life?

My Wife 4 years and going strong, had taken a loan 1.2 years before I met her for 100,000 with 20% P/M Interest, so obviously she had already paid back 140,000 just in interest. The loan shark still wanted the initial 100 k, so I just walked in there 1 day, stated the obvious (Your ripping this woman off!). I then handed over 30 k and told them I would not accept any further contact, to either of us, and if I heard anything from them I would go see my "Friend" High ranking Navy!

Never heard a whisper since, and yes I am 100% sure that my wife is an honest woman, and no there are no sick children, moms, fathers, goats, chickens Blah blah blah.

So the best thing, pay them a few Bob, and be on your way! If she rips you off later? Then you must be an idiot!

Right then, im sure there is someone waiting at their com with itchy fingers, FIRE AWAY!

[HerbalEd]

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

What's your pin number?

[StefanBBK]

I cannot comment to what happend here. I know however that the business adjecent to my wife's shop borrowed money from Indians or Pakistanies. They came along and asked who wants a loand and were freely giving out 20-100K. They then proceeeded to collect DAILY 200 baht interest. This would never end, unless the borrowed Money is paid back in one sum!

For someone who needs some money for a short time, perhaps tempting.

Many Thais have little concept about what interest rate should be.

[FunFon]

You know, a lot of you idiots obviously have nothing better to do than to sit around looking for reasons to give people shit!

Yes a lot of you are right, most of the time these woman are loving nothing more than your wallet. However! In some cases it is actually possible to meet a decent woman who just so happens to have made the wrong choice's in life?

My Wife 4 years and going strong, had taken a loan 1.2 years before I met her for 100,000 with 20% P/M Interest, so obviously she had already paid back 140,000 just in interest. The loan shark still wanted the initial 100 k, so I just walked in there 1 day, stated the obvious (Your ripping this woman off!). I then handed over 30 k and told them I would not accept any further contact, to either of us, and if I heard anything from them I would go see my "Friend" High ranking Navy!

Never heard a whisper since, and yes I am 100% sure that my wife is an honest woman, and no there are no sick children, moms, fathers, goats, chickens Blah blah blah.

So the best thing, pay them a few Bob, and be on your way! If she rips you off later? Then you must be an idiot!

Right then, im sure there is someone waiting at their com with itchy fingers, FIRE AWAY!

-

Maybe you do have a high-ranking Thai Navy officer friend, maybe not, but it is completely irresponsible to give this kind of advice out as if it's generally sound.

Will in many cases result in violent injury to self or those you love, and done in a way where the law won't be able to help even if it wants to.

Best policy for those that don't want to or can't afford to help people who get themselves into these situations is IMO to set a hard policy that learning about such difficulties becomes an immediate deal-breaker, and let any potential teelacs know about that from the start.

And always let them believe you have less than you really do, never more.

[Morden]

From my own observations, the lenders behind the motorcycle collectors rarely lend more than THB20,000 on an unsecured loan and want 20% per month interest. Beatings and theft of property commonly follow defaults.

There's another private loan market for those who can offer collateral. The rate is between 3 and 5% per month, depending on the quality of the collateral. Most lenders are content to continue the contract beyond the pay back date provided that interest is being paid. The better lenders will ask for a contract to be signed and the ownership of the collateral transferred to them until the loan is repaid. Borrowers seem happy to deal with these lenders because they don't snatch land as readily as do the banks and don't beat up defaulters.

Private lenders, other than the motorcycle types, offer a much needed service to those genuine borrowers who wish to avoid the clutches of the banks and finance companies. It's unreasonable to label them all with the derisory term 'loan sharks'.

[timewilltell]

The maximum interest PER ANNUM for a non- bank loan is 15% per ANNUM. The Thai don't give a hoot for the law as the police are not there to help uphold the law. If you took it to court you'd likely not fare much better as the lawyers and judges are as corrupt as the rest of the society. So in fact the law is really of practically no help at all.

You really have four choices. Find another girl. Pay the scumbags off. Arrange for the scumbags to disappear ( about 10k would be enough) but bears some possibility of repercussions. Keep paying the scumbags. Disappear yourself but if they know your name a simple trip to immigration and 200 baht helping money will have your last 90 day address exposed as they are centrally computerized.

Do you want to stay with a girl who is that stupid to tak a loan on those terms. Leopards don't change their spots and she has shown you hers already.