Thai debt

[yoga100]

Heard today that a thai female friend of mine in bangkok has somehow managed to accquire a 200,000 baht debt with the lender giving her till march 1st to pay

Only just heard the news so have few other details but has anyone anny knoledge of how things work in thailand for thai people in debt and what help or advice can they receive

Apparently the lender is hinting at police involvement if the debt is not paid off by the end of the month

Any adice or experience of this type of thing then please post and i'll pass it on to her

[wym]

What was your actual question?

Interest rates and non-payment penalties vary greatly depending on who she's borrowed the money from and what the collateral was.

4% per month is considered a fair rate outside the banking industry. Usually they're happy as long as the interest is paid, which of course gives a pretty good return on capital.

Rarely is there no collateral on such a large loan.

Best policy is that it's none of your business, even if she tells you her fingers are going to be chopped off.

If you want to help her out, then make sure you only do so as an outright gift, don't expect her to be able to pay you back.

Chances are pretty good you're the mark in a scam, either by her alone or working with others.

[NeverSure]

Chances are pretty good you're the mark in a scam, either by her alone or working with others.

This.

[Seastallion]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

What was your actual question?

Interest rates and non-payment penalties vary greatly depending on who she's borrowed the money from and what the collateral was.

4% per month is considered a fair rate outside the banking industry. Usually they're happy as long as the interest is paid, which of course gives a pretty good return on capital.

Rarely is there no collateral on such a large loan.

Best policy is that it's none of your business, even if she tells you her fingers are going to be chopped off.

If you want to help her out, then make sure you only do so as an outright gift, don't expect her to be able to pay you back.

Chances are pretty good you're the mark in a scam, either by her alone or working with others.

4%? I would say that is bargain basement. My other half reports 10% is the norm, and some sharks loan at 15%. She wants us to become lenders, but wholesale at 5% to the sharks. If it is not hijacking the thread, I would enjoy reading opinions on this idea. As you say, it is an excellent return on capital.

[wym]

I did say a fair rate.

And I think it's a very immoral way to make money.

Fortunately any farang getting involved in the business will most likely lose it all.

[Seastallion]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

I did say a fair rate.

And I think it's a very immoral way to make money.

Fortunately any farang getting involved in the business will most likely lose it all.

Luckily, morals are only a matter of opinion , although I do agree that usary is blood-sucking, sometimes the borrowers are quite happy to accept the terms.

Why would a farang lose it all, especially if there is collateral put up?

[yoga100]

I've known this woman many years,shes a hotel manageress and i've no doubt the situation is real....my question is she liable for crimal actions from the authorities,is there such a thing as a debtors prison in thailand,etc

Also are their any institutions in thailand that can give advice to thais in this situation as i am in greece and for the first time in many years wont be visiting thailand this year and indeed she knows i have limited means and there would be no point asking my for financial help

[yoga100]

i wish i was there to help,not financially as i dont have the means but advice wise,garnering advice being what prompted this thread

[Skint]

Knowing someone for years makes no difference if you are going to get pumped.

Perhaps she should report the lender to the bib

[mogandave]

Is she hot?

Sent from my iPhone using Thaivisa Connect Thailand mobile app

[yoga100]

Perhaps she should report the lender to the bib

What is that?

[NeverSure]

BiB = boys in blue = police. Won't do any good.

[chiang mai]

BiB = boys in blue = police. Won't do any good.

BIB = Boys in BROWN!

[mogandave]

Lenders loan people money, then when they try to get it back, you want to call the police.

Why not just pay them back like you promised?

Sent from my iPhone using Thaivisa Connect Thailand mobile app

[chiang mai]

For the purpose of this discussion there's really only three loan types:

The first is an unsecured loan from a bank or finance company, the interest rate on this type of loan will be reasonable and there's no collateral involved so if the debtor doesn't pay, they can walk away from the deal with a bad credit record.

The second is a secured loan where collateral has been pledged, a house, a car or similar, if the debtor defaults she will loose her collateral.

Finally, the third is a private loan which includes loan sharks, the interest rate is typically very high and walking away from the deal usually involves physical damage.

What kind of loan does your friend have?

[choochoo]

Since ladee wont tell who lender is, I vote for scam!

Even a loan shark has limits. 200,000 write off is quite a hit. Why didn't shark cut her off at 100,000? Run forrest run-the ladee is bad news. No matter how you cut it.

[whoisyourdaddy]

Few warning signs for the OP .

Banks or finance company's do not hint police involvement

Loan sharks most certainly do not hint police involvement

Perhaps loan from a friend or relative or just a scam

[happynthailand]

I smell "fishy"

[Seastallion]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

For the purpose of this discussion there's really only three loan types:

The first is an unsecured loan from a bank or finance company, the interest rate on this type of loan will be reasonable and there's no collateral involved so if the debtor doesn't pay, they can walk away from the deal with a bad credit record.

The second is a secured loan where collateral has been pledged, a house, a car or similar, if the debtor defaults she will loose her collateral.

Finally, the third is a private loan which includes loan sharks, the interest rate is typically very high and walking away from the deal usually involves physical damage.

What kind of loan does your friend have?

From what I've seen and heard, private loans may very well involve security and there is no hint of physical damage.......In fact I would suggest that the loan shark would prefer the debtor pay the exorbitant interest for a while then default and hand over the collateral.

[Pib]

So many ways to borrow money/accumulate debt in Thailand from legal /finance companies or illegal loan shocks. For a personal loan from a bank/finance company it will most likely run 15%APR for a secured personal loan and 18% for an unsecured personal loan. Or even a perfectly legal loan with high interest from another person such as family, friend, etc., can occur at whatever interest rate they agree to. A loan shock can charge any rate the borrower agrees to...not uncommon to hear 30% "or more....and payment in full might be X-baht per month for X-time period or all to be paid back in full by day X with X-amount interest due at that time...just like in some of the loan shock movies you see. But the borrow knows this upfront. If the borrow takes the loan shock (or a family member/friend to court over the loan) the judge would probably reduce the rate to 15% and payback conditions to comply with the law....but still has a pissed off loan shock/other person to avoid as much as possible/watch over their shoulder for.

Heck, I'm watching a money fight within my in-laws right now pan out as one 1st cousin loaned Bt130K to another 1st cousin who used it to buy a car and home furniture with the promise to pay back within X-time at a very healthy interest rate...we'll, he (actually him and his wife) is not paying it back because he can't (just don't make enough and owes other people a lot of money who are meaner than his cousin) and has already borrowed money from other family members (without payback) who will no longer loan him money. And the car company just repossessed the car. It's an ugly situation.

[mogandave]

If the people that borrow money keep up their end of the bargain, everyone is happy.

[Farma]

From what I've seen and heard, private loans may very well involve security and there is no hint of physical damage.......In fact I would suggest that the loan shark would prefer the debtor pay the exorbitant interest for a while then default and hand over the collateral.

From what I've seen, loan sharks are not scared of inflicting violence for unpaid loans.

Collectors can easily be seen doing their rounds wearing full face helmets and riding 2 up on motorbikes.

If payment is not forthcoming they will move on to other family members using scare and violent tactics to recover interest and the loan.

An elderly lady neighbour in her 70's received a black eye and other facial bruising last year as the result of her daughter not paying interest on time.

In addition we've also had collectors drop by to make their monthly payment to our police neighbour. They were quite open about the fact they pay regular payments to police which allows them operate in the local police areas of control.

[SheungWan]

If the people that borrow money keep up their end of the bargain, everyone is happy.

Indeed. 'Somehow'? she managed to borrow 200,000 baht? 'Somehow'? What's that all about?

[edwinchester]

What was your actual question?

Interest rates and non-payment penalties vary greatly depending on who she's borrowed the money from and what the collateral was.

4% per month is considered a fair rate outside the banking industry. Usually they're happy as long as the interest is paid, which of course gives a pretty good return on capital.

Rarely is there no collateral on such a large loan.

Best policy is that it's none of your business, even if she tells you her fingers are going to be chopped off.

If you want to help her out, then make sure you only do so as an outright gift, don't expect her to be able to pay you back.

Chances are pretty good you're the mark in a scam, either by her alone or working with others.

4%? I would say that is bargain basement. My other half reports 10% is the norm, and some sharks loan at 15%. She wants us to become lenders, but wholesale at 5% to the sharks. If it is not hijacking the thread, I would enjoy reading opinions on this idea. As you say, it is an excellent return on capital.

Daily rate here in the village is between 20 and 50%.

Thats right borrow 100bht today and pay back between 120 and 150bht tomorrow.

Maybe somebody can work out the apr!

Absolutely insane but the guys on the motorbikes seem to be doing good business.

[Pib]

Yeap...in my mother in laws village they have similar short term rates...almost unbelievable but it's a fact.

Sent from my Samsung S4 (GT-I9500)

[Sam Gold]

Thai loan sharks don't go to the police to report non-payers.

Your friend is Thai and she knows exactly how this works. It's not likely either that she would ever consider asking a farang if all she wanted was advice.

I would be careful.

[hotrod4098]

loans are designed to be never paid off..all they want is the interest payment on going...when i lived in issan,it was common to lend money...

the rate was like.borrow 1000tb...you pay back 2000tb in 4 days...so short term loans make a lot of money..

the op..says its 200000..so maybe a old debt on land deals,,gambling...or the long con scam...

[wym]

I did say a fair rate.

And I think it's a very immoral way to make money.

Fortunately any farang getting involved in the business will most likely lose it all.

Luckily, morals are only a matter of opinion , although I do agree that usary is blood-sucking, sometimes the borrowers are quite happy to accept the terms.

Why would a farang lose it all, especially if there is collateral put up?

A farang or his wife would be stupid to engage in business that competed with and/or required cooperation from the local police/mafia.

They would make sure you got screwed because. . .

They can.

[Suradit69]

BiB = boys in blue = police. Won't do any good.

It's hard to believe you stay in Thailand and think the police dress in blue.

[Suradit69]

What was your actual question?

Interest rates and non-payment penalties vary greatly depending on who she's borrowed the money from and what the collateral was.

4% per month is considered a fair rate outside the banking industry. Usually they're happy as long as the interest is paid, which of course gives a pretty good return on capital.

Rarely is there no collateral on such a large loan.

Best policy is that it's none of your business, even if she tells you her fingers are going to be chopped off.

If you want to help her out, then make sure you only do so as an outright gift, don't expect her to be able to pay you back.

Chances are pretty good you're the mark in a scam, either by her alone or working with others.

4%? I would say that is bargain basement. My other half reports 10% is the norm, and some sharks loan at 15%. She wants us to become lenders, but wholesale at 5% to the sharks. If it is not hijacking the thread, I would enjoy reading opinions on this idea. As you say, it is an excellent return on capital.

Daily rate here in the village is between 20 and 50%.

Thats right borrow 100bht today and pay back between 120 and 150bht tomorrow.

Maybe somebody can work out the apr!

Absolutely insane but the guys on the motorbikes seem to be doing good business.

Maybe they're former execs from Lehmann Brothers or Bear Stearns. Both banks went bust, but the top 5 execs in both banks walked away with $2.5 Billion (with a "B" ) in compensation for their hard work and wise leadership. These loan sharks didn't slip anything to the local police but they certainly owned more than a few elected representatives in Washington. And of course it was the villagers ... I mean taxpayers and investors ... who got royally screwed as usual.