How To Deal With Loan Sharks In Thailand?

[Chittychangchang]

Looking for some advice and experience TV members.

Here's the story or facts presented to me last night..

Thai MIL informed my wife last night that a 12 year old loan of 5000bht is now 100,000bht . My wife vagualy remembers this and signing some "paper". This loan shark has taken villagers homes and land in the past and is friends with the local police. These are all the facts i have at the moment. I shall keep you informed of future developments.

CCC

[utalkin2me]

When you got involved is probably when it went up to 100k.

The way the loans work out there is f you borrow 5k, you owe about 10k next season (or 5k plus about 5k in rice), then 10k would turn to 20k the next year..... Your wife should owe considerably more than 100k if she has made no payments for 12 years. Has she made payments?

What I would do is get yourself out of it, you are only attracting the visions of dollar signs. Maybe it is too late. I don't think there is too much good advice to give here. If she owes it, it is going to be a huge problem until you pay it as he probably wont take any sort of settlement. The one thing I can think is ask to see that paper, after 12 years, he may have lost it.

Also to consider is most farmers do not actually own their land. You will have to find out if your family actually has a "paper land" as they call them. If this loan shark has your paper land as insurance, you are in an even worse spot. If he doesn't have that, I'm sure it will be much more likely he will settle, which is good.

Edited May 5, 2013 by utalkin2me

[mickjn]

A lot borrow 5000baht interest 300 baht daily.Interest is collected daily.I cannot see a 5000 baht loan blowing out to 100000 baht and nothing done about it.I see the Maffia collecting their 300s every day.Your wife really doesnt want to be a party to this but to keep the peace she is saying she vaugley remembers.The old girl is trying to get you for 100000 baht,tell her the stick it up her ring,Mamas debt Mama pays.See how that works,if no result.let us know.Roughly what is your area and does the theiving old girl live near you.

[KarenBravo]

A lot borrow 5000baht interest 300 baht daily.Interest is collected daily.I cannot see a 5000 baht loan blowing out to 100000 baht and nothing done about it.I see the Maffia collecting their 300s every day.Your wife really doesnt want to be a party to this but to keep the peace she is saying she vaugley remembers.The old girl is trying to get you for 100000 baht,tell her the stick it up her ring,Mamas debt Mama pays.See how that works,if no result.let us know.Roughly what is your area and does the theiving old girl live near you.

Loan sharks charge between 5% and 20% per month. Not a daily rate. Therefore, interest is between 250 Bt and 1000Bt per month.

They want their money monthly and I just cannot see the loan shark allowing monthly payments to be missed so that the total gets to 100,000 Bt.

Sounds like the MIL is pulling a scam.

Edited May 5, 2013 by KarenBravo

[mickjn]

A lot borrow 5000baht interest 300 baht daily.Interest is collected daily.I cannot see a 5000 baht loan blowing out to 100000 baht and nothing done about it.I see the Maffia collecting their 300s every day.Your wife really doesnt want to be a party to this but to keep the peace she is saying she vaugley remembers.The old girl is trying to get you for 100000 baht,tell her the stick it up her ring,Mamas debt Mama pays.See how that works,if no result.let us know.Roughly what is your area and does the theiving old girl live near you.

Loan sharks charge between 5% and 20% per month. Not a daily rate. Therefore, interest is between 250 Bt and 1000Bt per month.

They want their money monthly and I just cannot see the loan shark allowing monthly payments to be missed so that the total gets to 100,000 Bt.

Sounds like the MIL is pulling a scam.

I see them when they day when they are sent out every day collecting their 300 baht for a 5000 baht loan.Come on up I will pay your petrol and we can have a beer with them.Work out of shop 2 doors from my daughter in laws shop.See you soon

[KarenBravo]

Obviously do it different where you are.

Thanks for the invite, I'll take your word for it, though.

Nearly 200% a month is outrageous.

[impulse]

I can't advise you on the Thailand aspects of the issue.

But if anyone in my family back home were in that situation (and I had the coin to spare), I'd loan them the $3300 to pay off the loan shark, and they could pay me back when they could. That keeps all the interest "in the family".

I'll let others with more experience go into the Thai aspects....

[Chittychangchang]

I've offered to source a thai lawyer to assist in the matter. It will be interesting to see how the situation develops when more info comes to light.

However the topic aggitates the wife so i'll keep out of it for now.

One things for sure no loan shark is getting a baht from our family budget. It's just suprising that a vague 12 year old debt should surface.

I even think the wife knows the long arm of the MIL is fabricating the whole "debt".

We'll see....

[Stradavarius37]

Cut off their fins and throw them back in the ocean to die - the Chinese way

[NeverSure]

This sounds like the old farang motivated thing, whether the loan exists. I agree with the suspicions posted that it could be a total scam. 12 years??

[CharlieH]

The "old debt" scam falls in the samecategory as the "sick buffalo" , or broken tractor, if your wife gets agitated she knows its not right but doesnt want to cause a problem with mum. Just leave it alone and stay out of it.

[balloon chaser]

They always have an "excuse".

[utalkin2me]

I am starting to think, the longer I live here, that there is some sort of pressure on a Thai family who has a farang married in. It is like if the family does not extract money from the farang, they are seen as stupid suckers or something. Maybe this isn't news to many?

It is funny the things I have heard OTHER family members do, not necessarily the wife. Mom, siblings.... they will stop at nothing sometimes it seems. I swear there is something to it as far as saving face goes with these family member's friends and relatives.

Edited May 6, 2013 by utalkin2me

[samuibeachcomber]

The "old debt" scam falls in the samecategory as the "sick buffalo" , or broken tractor, if your wife gets agitated she knows its not right but doesnt want to cause a problem with mum. Just leave it alone and stay out of it.

this is so true,good advice,just stay out of it.

[pattayadingo]

Yes, it sounds like you are being targetted as a Farang because loan sharks do not wait that long for their money. It is not in their interest to wait so long.

Look at it this way......

A loan of 5000 Baht is given to the customer. The customer either hands over the papers to their motorbike, car or even a house or land. No security, no loan.

When the Thai does not pay, the loan shark moves in and takes the property, often getting a nice fat profit on selling the product they now own the papers for. (From what I recall, it is actually illegal for them to keep the profit - but that is another matter altogether).

The 5000 Baht loan has increased to 100,000 Baht? That is illegal here in Thailand. Any good lawyer will tell you what the accepted % rate is and they can sort it out in the courts if you really want them to.

Problem being that when you start using lawyers against these people there are often going to be consequences for doing so and you need to be aware of that.

IF there are papers - I would ask to see the papers and have them verified by a trusted 3rd party, to try and verify the genuine date they were signed - then you can work out the interest yourself.

On the whole, I'd say you are being targetted and an attempted scam is underway.

Good luck in sorting this whatever you do.

[NeverSure]

The latest scam on me (I think so far) is that I have a sort-of gf in Isaan. (nothing wrong with Isaan per se.)

This "gf" has a masters degree and works in a school system at a good job. No way would there be immediate suspicion of her.

The story is that the parents are poor but have had a house in town that's been paid off for years. They let a sister of my "gf" borrow 1 mil baht against it and now that sister can't make the payments. The parents could lose the house unless a farang does a take-out loan.

No way in hell. I don't even know if there is a loan and I'm not going to check. If they were stupid enough to get into this predicament, they can get themselves out.

Oh, the additional sob story is that this master's degree "gf" made the final payments on the house, and everyone had agreed she was to inherit it. Now she loses all if the loan defaults.

I'm simply covered up in tears, I tellya.

[petedk]

Yes, it sounds like you are being targetted as a Farang because loan sharks do not wait that long for their money. It is not in their interest to wait so long.

Look at it this way......

A loan of 5000 Baht is given to the customer. The customer either hands over the papers to their motorbike, car or even a house or land. No security, no loan.

When the Thai does not pay, the loan shark moves in and takes the property, often getting a nice fat profit on selling the product they now own the papers for. (From what I recall, it is actually illegal for them to keep the profit - but that is another matter altogether).

The 5000 Baht loan has increased to 100,000 Baht? That is illegal here in Thailand. Any good lawyer will tell you what the accepted % rate is and they can sort it out in the courts if you really want them to.

Problem being that when you start using lawyers against these people there are often going to be consequences for doing so and you need to be aware of that.

IF there are papers - I would ask to see the papers and have them verified by a trusted 3rd party, to try and verify the genuine date they were signed - then you can work out the interest yourself.

On the whole, I'd say you are being targetted and an attempted scam is underway.

Good luck in sorting this whatever you do.

I agree with part about seeing the papers.

when I lived in Denmark I met a girl from the Philapinnes. We only dated a few days when she came crying to me tha the police had taken her passport some unknown reason and wanted 5000 Dkr to give it back to her. I offered to go with her to the police station but of course she refused. To cut a long story short I never saw her again.

My first few experiences with Thai girls were the same. Met a few times and suddenly "mum is sick, needs 50,000+ Baht for operation tomorrow or she die".

"Ok I'll go to the hospital with you and pay"

"Oh no can do because bla. bla bla."

Another girl came up with a similar story to the OP. Her family owned 1 million baht. About to be beaten up, lose house etc. etc.. I offered to go and pay if I saw all the papers (no way would i pay a million) but the same old story... no can do.. I'm still in contact with her and she leads a happy life with a new farang bf. God knows if he paid.

I think many many Thais see dollars when they meet farangs. They have the idea that farangs have unlimited money supplies and try to get as much as possible from them.

Now my wife (we're not really married but live together) earns much more than me. All her brothers and sisters are millionaires, but i don't borrow from them.

Edited May 6, 2013 by petedk

[toybits]

There is now a law that prohibits this practice.

[mickjn]

I've offered to source a thai lawyer to assist in the matter. It will be interesting to see how the situation develops when more info comes to light.

However the topic aggitates the wife so i'll keep out of it for now.

One things for sure no loan shark is getting a baht from our family budget. It's just suprising that a vague 12 year old debt should surface.

I even think the wife knows the long arm of the MIL is fabricating the whole "debt".

We'll see....

Thai Lawyer with only rip you off, go 50/50 with the old MIL only time to use one if you are dealing with your Embassy they can be helpful their otherwise avoid them

Topic aggitates your wife because she knows what the old bitch is trying to do to you and is trying not to be involved but it is the old thing,the Thai Family.When your wife said she vaugley remembers the papers,and did not say flat out she did she is trying not to take sides which is great.I think your wife is a good lady.You just carry on and do what you think is right as they say in Thailand mai pen rai.I will not post again on this matter but in closing I will say again as I did in my first reply to you,tell me what provence you live in,I will get you the answer in a couple of hours.All the best

[pattayadingo]

Yes, it sounds like you are being targetted as a Farang because loan sharks do not wait that long for their money. It is not in their interest to wait so long.

Look at it this way......

A loan of 5000 Baht is given to the customer. The customer either hands over the papers to their motorbike, car or even a house or land. No security, no loan.

When the Thai does not pay, the loan shark moves in and takes the property, often getting a nice fat profit on selling the product they now own the papers for. (From what I recall, it is actually illegal for them to keep the profit - but that is another matter altogether).

The 5000 Baht loan has increased to 100,000 Baht? That is illegal here in Thailand. Any good lawyer will tell you what the accepted % rate is and they can sort it out in the courts if you really want them to.

Problem being that when you start using lawyers against these people there are often going to be consequences for doing so and you need to be aware of that.

IF there are papers - I would ask to see the papers and have them verified by a trusted 3rd party, to try and verify the genuine date they were signed - then you can work out the interest yourself.

On the whole, I'd say you are being targetted and an attempted scam is underway.

Good luck in sorting this whatever you do.

I agree with part about seeing the papers.

when I lived in Denmark I met a girl from the Philapinnes. We only dated a few days when she came crying to me tha the police had taken her passport some unknown reason and wanted 5000 Dkr to give it back to her. I offered to go with her to the police station but of course she refused. To cut a long story short I never saw her again.

My first few experiences with Thai girls were the same. Met a few times and suddenly "mum is sick, needs 50,000+ Baht for operation tomorrow or she die".

"Ok I'll go to the hospital with you and pay"

"Oh no can do because bla. bla bla."

Another girl came up with a similar story to the OP. Her family owned 1 million baht. About to be beaten up, lose house etc. etc.. I offered to go and pay if I saw all the papers (no way would i pay a million) but the same old story... no can do.. I'm still in contact with her and she leads a happy life with a new farang bf. God knows if he paid.

I think many many Thais see dollars when they meet farangs. They have the idea that farangs have unlimited money supplies and try to get as much as possible from them.

Now my wife (we're not really married but live together) earns much more than me. All her brothers and sisters are millionaires, but i don't borrow from them.

And, of course, the ladies do talk amongst themselves and say what they got their fool Farang to do for them, so they try it on also. sometimes in different formats.

In all honesty, I've had more than my fair share of attempted scams in the village life than I ever had in the likes of Pattaya. From the simple phone does not work scam to sick family.

Often it is peer / family pressure that is laid at the door of the g/f to try it on. If they fail, they have lost nothing but if they succeed they can gain 10's of thousands + of Baht in a short time.

Yes, proof, proof, proof is the way to go forward, as you say. And in the past I have used a trusted friend as an independent advisor when not too sure. He was threatened more than once, but still advised me honestly.

[soi41]

There is now a law that prohibits this practice.

[yourauntbob]

The best way to deal with it is to not get involved with loan sharks.

[Neeranam]

The latest scam on me (I think so far) is that I have a sort-of gf in Isaan. (nothing wrong with Isaan per se.)

So why mention it?

[Trembly]

Yes, it sounds like you are being targetted as a Farang because loan sharks do not wait that long for their money. It is not in their interest to wait so long.

Look at it this way......

A loan of 5000 Baht is given to the customer. The customer either hands over the papers to their motorbike, car or even a house or land. No security, no loan.

When the Thai does not pay, the loan shark moves in and takes the property, often getting a nice fat profit on selling the product they now own the papers for. (From what I recall, it is actually illegal for them to keep the profit - but that is another matter altogether).

The 5000 Baht loan has increased to 100,000 Baht? That is illegal here in Thailand. Any good lawyer will tell you what the accepted % rate is and they can sort it out in the courts if you really want them to.

Problem being that when you start using lawyers against these people there are often going to be consequences for doing so and you need to be aware of that.

IF there are papers - I would ask to see the papers and have them verified by a trusted 3rd party, to try and verify the genuine date they were signed - then you can work out the interest yourself.

On the whole, I'd say you are being targetted and an attempted scam is underway.

Good luck in sorting this whatever you do.

Physically hanging on to the deed doesn't give the loan shark the legal right to sell it. If you don't have the deed but are the owner as stated on the deed all you have to do is go to the land department office and report the deed as lost.

[breadbin]

I think the 5k was never 100k but to you it is now 100k

Open up your eyes and be careful.

Once you start paying loans off at ridiculous amounts and are taken in by being gullible it'll just carry on as you'll be seen as a soft touch.

Let the MIL deal with it and when they are about to repossess the house get the papers from the court and see what is owed.

[breadbin]

Yes, it sounds like you are being targetted as a Farang because loan sharks do not wait that long for their money. It is not in their interest to wait so long.

Look at it this way......

A loan of 5000 Baht is given to the customer. The customer either hands over the papers to their motorbike, car or even a house or land. No security, no loan.

When the Thai does not pay, the loan shark moves in and takes the property, often getting a nice fat profit on selling the product they now own the papers for. (From what I recall, it is actually illegal for them to keep the profit - but that is another matter altogether).

The 5000 Baht loan has increased to 100,000 Baht? That is illegal here in Thailand. Any good lawyer will tell you what the accepted % rate is and they can sort it out in the courts if you really want them to.

Problem being that when you start using lawyers against these people there are often going to be consequences for doing so and you need to be aware of that.

IF there are papers - I would ask to see the papers and have them verified by a trusted 3rd party, to try and verify the genuine date they were signed - then you can work out the interest yourself.

On the whole, I'd say you are being targetted and an attempted scam is underway.

Good luck in sorting this whatever you do.

Physically hanging on to the deed doesn't give the loan shark the legal right to sell it. If you don't have the deed but are the owner as stated on the deed all you have to do is go to the land department office and report the deed as lost.

You can't report a deed as lost if you know someone else holds it,

For one thing it's fraud and another you can get in a whole lotta trouble.

[GuestHouse]

Bht100,000 unpaid loan does not need to Mrs, the MIL or anyone else in the family to come clean and admit the debt.

The OP would have noticed some rather 'Handy Looking' visitors coming to the house on a regular basis, long long before the debt got to 100K.

[RedBullHorn]

I had a few too...

1st case. MIL requested i paid off UIL debt of ฿40'000 with interest, i ask if she would do the same for me when I'm in debt. She said no whilst shaking her head...

2nd case. BIL wants to buy a new truck that needed a minimum ฿250'000 down payment, intend to trade in his old truck but still short of ฿100'000. I agreed to help after my wife sincerely begged. Then we saw him driving the new Toyota Vigo along the soi and into his house, we look at each other and she knew what i was thinking. Minutes later, the BIL rang her up to pass bank information so that she could transfer the ฿100'000 that was needed for the down payment. Wife asked how is it possible that he can get the new truck before we could transfer the money ? He was dumbstruck, wife scolded him for being too dumb to scam. The truth was that he wanted the ฿100'000 to finance the monthly installment and some cash to use as he please.

3rd case. AIL burrow ฿30'000 through my wife, i told her interest free and pay me back when she ready. No courtesy call at all to let us know that she remember that she indebted. As if never happened, year on year off, i reminded her of the debt she owes me and she could pay me by installment if she prefer. She brushed it off by saying next year...Don't worry I'll pay you next year. I went hard ball with her last year, made her lose face infront of others and got my ฿30'000 back after 6 years. To savage some little face that she had left she cockily ask if i want interest too, I whispered loudly, "...If you're willing to paid, i shall collect it 6 years later. But then again, I really don't think you could afford to pay. Even at a compounded 12% per year... so it's ok." Everybody laught.

4th case.... hmm, never mind...

[falkan]

were do you guys find these smart ladies? local beerbar? issan?

[thaicbr]

were do you guys find these smart ladies? local beerbar? issan?

They are every where. All over the world

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