Jonathan Fairfield Posted December 25, 2015 Share Posted December 25, 2015 Many Thais weighed down by debts BANGKOK:-- PEOPLE IN 40 provinces are burdened by off-system debts worth up to Bt1 billion, the Justice Ministry’s Legal Aid Centre for Debtors and Victims of Injustice revealed recently. While most of these debtors in the North were duped into leasing farming tools, people in the Central and Northeast regions were preyed upon by "helmet gangster" moneylenders charging interest of 2 per cent per day or 20 per cent per month. Debtors in the South were usually caught up in car-leasing schemes, the centre said. Pol Lt-Colonel Wichai Suwanprasert, the centre's secretary, said on Wednesday that the number of complaints received by his office was increasing. "Each year, we get more than 200 cases, and there are more than 500 debtors owing Bt1 billion scattered across 40 provinces," he said, adding that in Chaiyaphum province, it was found that a teacher was moonlighting as a moneylender and had up to 475 debtors. He said that in one case, a person borrowed Bt100,000 and ended up having to pay back up to Bt300,000. Most debtors in cities were vendors and salaried people, while those upcountry were mostly farmers, he said, adding that most of those who filed complaints had found themselves under debts of tens of thousands of baht. Moneylenders advertised online, offering deals on car or tool leasing, while some even offered cash incentives, Wichai said. Debtors need to pay a monthly instalment for the goods, or else moneylenders repossess the goods and release them to others, he said, adding that such cases could fall within the frame of fraud. As for the "helmet gangster" moneylenders, most plaintiffs were actually targeted by the same network, which has branches in several provinces, he said. To deal with certain major "influential persons" to whom many people owed money, the centre has forwarded their information to the Department of Special Investigation and the police Central Investigation Bureau for investigation and further legal actions, Wichai said. Panit Kerdchokchai, adviser to the Foundation of Virtuous Youth and also former director of the Stock Exchange of Thailand's Learning Centre, said that in 2010 personal debts in Thailand amounted to 63 per cent of gross domestic product and rose to 85.9 per cent in 2014. As of late this year, this figure increased to 90 per cent, of which only about 6.5 per cent were "good debts", or loans taken to boost quality of life, such as home loans, she said. She also cited a recent report by the Organisation for Economic Cooperation and Development showing that the three factors for the creation of debt were: the lack of money-management skills; far too easy access to monetary services, especially for public-school teachers; and the lack of agencies to protect people from unscrupulous moneylenders. Source: http://www.nationmultimedia.com/national/Many-Thais-weighed-down-by-debts-30275639.html -- The Nation 2015-12-25 Link to comment Share on other sites More sharing options...
clockman Posted December 25, 2015 Share Posted December 25, 2015 Every village has a loan shark! Link to comment Share on other sites More sharing options...
worgeordie Posted December 25, 2015 Share Posted December 25, 2015 Another day older and deeper in debt !,if they were all farmers they would get Government help. regards Worgeordie Link to comment Share on other sites More sharing options...
trogers Posted December 25, 2015 Share Posted December 25, 2015 Not a lack of money-management skills, but a lack of good arithmetics... Link to comment Share on other sites More sharing options...
waldroj Posted December 25, 2015 Share Posted December 25, 2015 Not unique to LOS, but still depressing stats none the less. Why cite 40 provinces (just because some of their residents have billion-baht debts). Are the other 36 too poor that their individuals' debts don't amount to much? As for moneylenders advertising online - surely the smarts are already in place to close these guys down. Link to comment Share on other sites More sharing options...
Bluespunk Posted December 25, 2015 Share Posted December 25, 2015 "it was found that a teacher was moonlighting as a moneylender and had up to 475 debtors." So in effect, a money lender moonlighting as a teacher. Link to comment Share on other sites More sharing options...
Bluespunk Posted December 25, 2015 Share Posted December 25, 2015 "Moneylenders advertised online, offering deals on car or tool leasing, while some even offered cash incentives, Wichai said. Debtors need to pay a monthly instalment for the goods, or else moneylenders repossess the goods and release them to others, he said, adding that such cases could fall within the frame of fraud." How's that then? Link to comment Share on other sites More sharing options...
ezzra Posted December 25, 2015 Share Posted December 25, 2015 No wonder at all, that in the age of unbridled consumerism and easy money to everyone, and the notion that the government will bail the poor out just like many government before this one, not to say the attractions of cheap cars and unnecessary items for the masses, not hard to understand where the debts are coming from.... plus the fact that Thai people are terrible with saving and managing their monies, what do you expect than? Link to comment Share on other sites More sharing options...
toybits Posted December 25, 2015 Share Posted December 25, 2015 (edited) I am not bothered by this because 99.3% of them are happy. End of Story. NEXT TOPIC PLEASE!! Edited December 25, 2015 by toybits Link to comment Share on other sites More sharing options...
kingalfred Posted December 25, 2015 Share Posted December 25, 2015 All from the "populist" junk from Peau Thai gov with their fantasy schemes , first car and rice.the gullibility of uneducated masses Link to comment Share on other sites More sharing options...
Ks45672 Posted December 25, 2015 Share Posted December 25, 2015 Another day older and deeper in debt !,if they were all farmers they would get Government help. regards Worgeordie Or illegal fishermen... Link to comment Share on other sites More sharing options...
nev Posted December 25, 2015 Share Posted December 25, 2015 The banks are to blame for a lot of this, very hard for average Thai's to obtain a loan even if ever so small. The ones who are benifiting off the poor are scum they know they can offer lower interest but greed is what it is all about. Link to comment Share on other sites More sharing options...
GarryP Posted December 25, 2015 Share Posted December 25, 2015 "Most debtors in cities were vendors and salaried people". You don't say!!!!! Link to comment Share on other sites More sharing options...
GarryP Posted December 25, 2015 Share Posted December 25, 2015 A motorcycle taxi guy I know wanted to borrow money from a bank (any bank) to buy a second hand pickup truck so he could also offer services transporting goods and transport his welding gear (he is also a freelancer welder). Not one bank would lend him money despite evidence of daily/weekly deposits. I felt sorry for him and gave him an interest free loan myself. He has not once missed a payment - usually pays early - and only has three payments left to clear the debt. He has since increased his income streams and he claims his life is improving. If I had not stepped in he would have had no option but to go to a usurious money lender. Link to comment Share on other sites More sharing options...
shirtless Posted December 25, 2015 Share Posted December 25, 2015 Thais lack the skills , to manage a budget they buy on impulse or to save face , they are total consumers Link to comment Share on other sites More sharing options...
waldroj Posted December 25, 2015 Share Posted December 25, 2015 (edited) GarryP Maybe your friend would qualify for SME assistance. Edited December 25, 2015 by waldroj Link to comment Share on other sites More sharing options...
puukao Posted December 25, 2015 Share Posted December 25, 2015 This is way too much work......gangs, extortion, violence... I run a employment agency. I get you a job in China for 11 cents an hour. They pay me 8 dollars an hour. simple Link to comment Share on other sites More sharing options...
monkey4u Posted December 25, 2015 Share Posted December 25, 2015 "Most debtors in cities were vendors and salaried people". You don't say!!!!! That's right Not too many farmers at Nana Plaza Link to comment Share on other sites More sharing options...
prakhonchai nick Posted December 25, 2015 Share Posted December 25, 2015 "Most debtors in cities were vendors and salaried people". You don't say!!!!! That's right Not too many farmers at Nana Plaza I would suggest there are many ex farmers at Nana Plaza. Once rolling hay, now having at least one daily roll in the hay! Link to comment Share on other sites More sharing options...
Benmart Posted December 25, 2015 Share Posted December 25, 2015 The banks are to blame for a lot of this, very hard for average Thai's to obtain a loan even if ever so small. The ones who are benifiting off the poor are scum they know they can offer lower interest but greed is what it is all about. I'm not qualified or inclined to assign "blame" on any issue, particularly one such as this. I do agree that greed and poor fiscal management has a part in this situation. "There is no dignity quite so impressive, and no one independence quite so important, as living within your means". - Calvin Coolidge Link to comment Share on other sites More sharing options...
IAMHERE Posted December 25, 2015 Share Posted December 25, 2015 Every village has a loan shark! The case I know about is a grandfather that asked his daughter to loan 50,000 baht to a granddaughter (niece of aunt). No interest was mentioned but 2 months later the aunt's husband calls up the niece and says 10,000 baht per year interest. Called 'Dog Be Ear' or close to it. Extorsion is what I called it. Link to comment Share on other sites More sharing options...
RichardColeman Posted December 25, 2015 Share Posted December 25, 2015 My Thai wife works as a teacher, works 6 day a week, hugely educated, but earns a daft amount like £300 a month. Seems to me some of the blame lays with wages not covering the basics even for professionals. Link to comment Share on other sites More sharing options...
ronwparker Posted December 25, 2015 Share Posted December 25, 2015 Most of Thais buy on debt -a car before a house-they do not think long term so many get in Debt sadly Link to comment Share on other sites More sharing options...
Bangkok Barry Posted December 25, 2015 Share Posted December 25, 2015 My father always taught me that if you can't afford it then go without. As a result I owe nobody anything, and even credit cards are only used as a means of payment and are paid off each month. However, with his mindset he refused to buy our house in London when I was a kid. It would have cost 10,000 pounds. Now it's worth 600,000. Link to comment Share on other sites More sharing options...
soalbundy Posted December 25, 2015 Share Posted December 25, 2015 Not a lack of money-management skills, but a lack of good arithmetics... coupled with desperation, still as long as they can listen to Prayuts songs it's all hunky dory. Link to comment Share on other sites More sharing options...
billd766 Posted December 25, 2015 Share Posted December 25, 2015 All from the "populist" junk from Peau Thai gov with their fantasy schemes , first car and rice.the gullibility of uneducated masses Don't forget the "first homes" and every schoolchild will get a tablet to work with at school. I don't think it is gullability so much but more a case of a poor education chance from years ago and the lack of any viable alternative. Link to comment Share on other sites More sharing options...
soalbundy Posted December 25, 2015 Share Posted December 25, 2015 The banks are to blame for a lot of this, very hard for average Thai's to obtain a loan even if ever so small. The ones who are benifiting off the poor are scum they know they can offer lower interest but greed is what it is all about. I'm not qualified or inclined to assign "blame" on any issue, particularly one such as this. I do agree that greed and poor fiscal management has a part in this situation. "There is no dignity quite so impressive, and no one independence quite so important, as living within your means". - Calvin Coolidge A man who lives within his means is lacking in imagination, Oscar Wilde Link to comment Share on other sites More sharing options...
apetley Posted December 25, 2015 Share Posted December 25, 2015 2% per day? In our village the daily rate is between 20% and 50%. There are people borrowing 100bht one day and paying back between 120bht and 150bht the next. Link to comment Share on other sites More sharing options...
Stargeezr Posted December 25, 2015 Share Posted December 25, 2015 It seems like most countries in the world, the Thai people are no different. In Thailand I have seen private lenders all over, just as in Canada we see the Pay Day loan places and HFC Finance if it still exists, or other business in Canada or USA that will lend money at huge rates. Wait! those real crooks are call credit card companies. I forgot how much interest they all charge us. Link to comment Share on other sites More sharing options...
louse1953 Posted December 25, 2015 Share Posted December 25, 2015 "Most debtors in cities were vendors and salaried people". You don't say!!!!! That's right Not too many farmers at Nana Plaza No,it's their daughters. Link to comment Share on other sites More sharing options...
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