Phuket Loan Shark Arrested

[webfact]

'Major' loan shark arrested in Phuket
Nattha Thepbamrung


Phuket loan shark Yuthana “Tam” Rodjan, 31, and six others were arrested yesterday.

PHUKET: -- A man regarded as a major loan shark in Phuket, Phang Nga and Krabi was busted by Bangkok police in Thalang district about 7 pm yesterday (May 6).

Before his arrest, Yuthana “Tam” Rodjan, 31, felt so secure from legal sanction that his enforcers wore shirts emblazoned with the operation’s name, “Tam Credit”.

This failed to impress Pol Maj Rungsak Maijandee, Inspector of the Central Crime Suppression Division (CSD) and a team of 12 officers, who arrested Yuthana and six others in a house in Tambon Thepkrasattri.

Maj Rungsak said that the CSD had received information that the house was the headquarters of Tam Credit, which made loans at illegally high interest rates. For example, on a loan of B10,000 the enforcers would collect B400 a day, part interest and part repayment of the principal.

Police seized as evidence B107,000 in cash, a semi-automatic pistol, two laptop computers, eight motorcycles, a book listing the names and details of debtors, and some loan contracts.

Yuthana confessed to the police that he and his staff had been in the loan business for “three or four” years.

Every day the enforcers, who worked part-time for B6,500 a month apiece, would don black full-face helmets and their company shirts and ride their motorcycles to markets around the three provinces, making new loans and collecting interest.

He said that he currently had 30 “clients” and that payments would swell his bank account by about B60,000 a day.

He stressed, however, that although those in arrears might be threatened, neither he nor the enforcers had ever used violence.

Yuthana and his men are currently residing in Thalang police station while further investigations are carried out.

Source: http://www.thephuketnews.com/%E2%80%98major%E2%80%99-loan-shark-arrested-in-phuket-39274.php


-- Phuket News 2013-05-07

[webfact]

Phuket loan shark, henchmen netted in raid
Phuket Gazette

PHUKET: -- Crime Suppression Division officers arrested a Phuket loan shark and his six henchmen in a raid on a house in suburban Thalang late yesterday afternoon.

Led by Maj Roongsak Maichandee and armed with a search warrant, the officers entered a house in Ban Muang Mai, off Thepkrasattri Road in Thalang, and arrested Yutthana “Tum” Dorkjan, 31, for running a loan shark operation under the name Tum Credit.

The officers also arrested Surasak Tongyam, 19, from Uthai Thani; Artin Samit, 24, from Nakhon Nayok; Akekapong Rongharnkaew, 20, from Chiang Rai; Supakorn Polyium, 28, from Roi Et; Somkiat Sonmaneechoti, 28, from Nakhon Pathom; and Yutthapong Buanam, 28, from Phetchaburi.

“The six men went out onto the streets and into neighborhoods to find new customers, and collect payments,” Maj Roongsak said.

“They collected 20 per cent interest per month. The maximum rate to be charged on loans is set by law at 15 per cent per month,” he explained.

Police seized 107,000 baht cash, 19 debtor record books, business cards, two bankbooks, 15 mobile phones, one iPad, one laptop, five motorbikes, two cars and seven jackets emblazoned with the Tum Credit logo.

Officers also seized one semi-automatic handgun.

“They were all charged with operating and assisting an illegal loan business and charging illegal interest rates. They have all confessed to the charges against them,” he stated.

Full story: http://www.phuketgazette.net/phuket_news/2013/Phuket-loan-shark-henchmen-netted-in-raid-20977.html


-- Phuket Gazette 2013-05-07

[bobl]

What makes me laugh, is the government's 'legal' limit of 15%/mo. So loan sharks still make an obscene profit, even if staying within the law. What a joke.

If the government was serious about helping people so desperate for 10,000 baht that they use these people, they'd look into microfinance.

[LivinginKata]

I was under the impression that the government's 'legal' limit is 15%/year ??

[stevenl]

I think that was a slip of the tongue, afaik the legal limit is 15% per year.

[bobl]

I think that was a slip of the tongue, afaik the legal limit is 15% per year.

That makes a little more sense... :-)

[rubberduck]

Do the debtors still have to pay back, and to who ? Or are they partying now ?

[starkey_rich]

Do the debtors still have to pay back, and to who ? Or are they partying now ?

Will probably be business as usual in a few days time.

[keestha]

Once I saw a program on Thai television about loan sharks, and the enforcers, always operating as a pair, youngish men on motorcycles wearing full face helmets. Often enough when driving, I spot a pair of young men meeting this description, and I think: that's probably two of them.

[madmitch]

Once I saw a program on Thai television about loan sharks, and the enforcers, always operating as a pair, youngish men on motorcycles wearing full face helmets. Often enough when driving, I spot a pair of young men meeting this description, and I think: that's probably two of them.

Yep, that's the standard uniform.

[LivinginKata]

Once I saw a program on Thai television about loan sharks, and the enforcers, always operating as a pair, youngish men on motorcycles wearing full face helmets. Often enough when driving, I spot a pair of young men meeting this description, and I think: that's probably two of them.

Those are the guys who collect interest money EVERY DAY. Typically 2% a day or 20 baht for every 1,000 baht borrowed, works out at 60% interest per MONTH. It's big business with people lining up to borrow.

[jbrain]

Once I saw a program on Thai television about loan sharks, and the enforcers, always operating as a pair, youngish men on motorcycles wearing full face helmets. Often enough when driving, I spot a pair of young men meeting this description, and I think: that's probably two of them.

Those are the guys who collect interest money EVERY DAY. Typically 2% a day or 20 baht for every 1,000 baht borrowed, works out at 60% interest per MONTH. It's big business with people lining up to borrow.

As the OP says that a 10.000 Baht loan would be repaid at 400 Baht a day, that accounts to 12.000 a month or 20% interest. Nobody borrows at 60% a month.

Edited May 7, 2013 by jbrain

[nev]

Not all of the two men on a motorcy wearing full face helmets are working for the loan sharks, most are working for mortorcy shops trying to get payment for motorcy's bought on credit.

[LivinginKata]

Once I saw a program on Thai television about loan sharks, and the enforcers, always operating as a pair, youngish men on motorcycles wearing full face helmets. Often enough when driving, I spot a pair of young men meeting this description, and I think: that's probably two of them.

Those are the guys who collect interest money EVERY DAY. Typically 2% a day or 20 baht for every 1,000 baht borrowed, works out at 60% interest per MONTH. It's big business with people lining up to borrow.

As the OP says that a 10.000 Baht loan would be repaid at 400 Baht a day, that accounts to 12.000 a month or 20% interest. Nobody borrows at 60% a month.

I think you best rethink your figures. You say .. A loan of 10,000 with pay back of 12,000/month = 20 % interest. Sorry that does not compute. I would suggest 200 baht/ for day for interest (= 2%/day) and 200 baht for capital repayment. I happen to know of plenty people paying 60% per month. Yes ... it's crazy, but that is a reality of life.

[simple1]

Once I saw a program on Thai television about loan sharks, and the enforcers, always operating as a pair, youngish men on motorcycles wearing full face helmets. Often enough when driving, I spot a pair of young men meeting this description, and I think: that's probably two of them.

Those are the guys who collect interest money EVERY DAY. Typically 2% a day or 20 baht for every 1,000 baht borrowed, works out at 60% interest per MONTH. It's big business with people lining up to borrow.

As the OP says that a 10.000 Baht loan would be repaid at 400 Baht a day, that accounts to 12.000 a month or 20% interest. Nobody borrows at 60% a month.

To confirm LivinginKata's post. My wife knows Thais who have borrowed black money with no collateral. e.g. 8,000 baht and paying 160 baht, interest only, daily. As said above 2% a day.

[jbrain]

Once I saw a program on Thai television about loan sharks, and the enforcers, always operating as a pair, youngish men on motorcycles wearing full face helmets. Often enough when driving, I spot a pair of young men meeting this description, and I think: that's probably two of them.

Those are the guys who collect interest money EVERY DAY. Typically 2% a day or 20 baht for every 1,000 baht borrowed, works out at 60% interest per MONTH. It's big business with people lining up to borrow.

As the OP says that a 10.000 Baht loan would be repaid at 400 Baht a day, that accounts to 12.000 a month or 20% interest. Nobody borrows at 60% a month.

I think you best rethink your figures. You say .. A loan of 10,000 with pay back of 12,000/month = 20 % interest. Sorry that does not compute. I would suggest 200 baht/ for day for interest (= 2%/day) and 200 baht for capital repayment. I happen to know of plenty people paying 60% per month. Yes ... it's crazy, but that is a reality of life.

This is from post #2

“They collected 20 per cent interest per month. The maximum rate to be charged on loans is set by law at 15 per cent per month,” he explained.

Unfortunately I have known a few loansharks during my time here, not that I ever borrowed money, but they all charged between 15 and 20% a month depending on the guarantees they could get.

At half of the 60% you mention you can walk into any pawnshop in Thailand and get money in exchange for some items you own.

[Somtamnication]

So they caught one loan shark with 6 henchmen. What? 1 down and like, hummm, 5000 more to go? Raid is a joke. They forgot to pay the bib this month.

[kiniyow]

Tip of the Iceburg..Many Thais are in on this and few ever get caught...Many Claim Police Protection~~

[timewilltell]

Why don't they do this to the money lenders who steal property using illegal loans and 'Sale with Right of Redemption"? I have been in a court where the money lender freely admitted charging 3% & 4% per month and no one batted an eyelid. Bizarre.

[Just1Voice]

Standard uniform I see in CNX - Brown jacket, brown slacks, black shoes, black helmet with dark visor, and riding 2 up on CBR 150's. Pulled into 7-11 / PTT in Bosang one day. 4 CBR 150's. 6 loan sharks, 2 BiB for the other CBR, all standing around laughing and joking with each other. The only difference between them is the uniforms they wear.

[eezergood]

Predatory lending, truly the middle path my brother!

[belg]

you have one article stating x and just after another stating y ....

so how much intrest was it ? 400 baht per day for a 10.000 baht loan is not 20%... that is 120% per month

can farang start such a business looooooooooooool

i would be happy lending at 5% per month

but off course, this is a thai only deal