Massive loan sharking operation reaches up to state employees, say police

[webfact]

Massive loan sharking operation reaches up to state employees, say police

 

Picture: Thairath

 

BANGKOK: -- Police in Chumporn have announced the arrest of six people involved in a large loan sharking operation.

 

But the arrests are just the tip of a huge iceberg of corruption that may involve dozens of state employees taking monthly bribes, say cops, reports Thairath.

 

Found in a raid in the southern province yesterday were the names and phone numbers of many state officials who are allegedly involved.

 

The mastermind of the operation is believed to be an individual in Bangkok.

 

Soldiers and DSI police yesterday working under article 44 on a case of national economic importance raided premises in downtown Chumporn.

 

Four men were arrested - these were Pongchai Poolasri, 30 of Uthai Thani, Sayan Narksang, 31, of Chainat, Thanakorn Luangwangpho, 22, of Nakorn Sawan and Ekarin Moh-Soi, 35 a Nakorn Sri Thammarat native.

 

A one hour interrogation revealed that the men were working for a man in Bangkok as part of an operation that has links to many provinces and involves payoffs of each "cell" to state officials of at least 50,000 baht per month.

 

Names and bribes were found in ledgers with payments ranging from 2,000 baht to 12,000 baht a month.

 

Money, gold and vehicles were taken into evidence. Later two more men were arrested as part of the operation. These were Manas (or Ek) Chaithet, 33, of Thai Thani and Khanitpong  (or Den) Phromthaisong, 23, of Nakorn Rachasima.

 

Source: Thairath

 

-- © Copyright Thai Visa News 2016-10-27

[Pimay1]

If not for the soldiers it would have been business as usual.

 

[NongKhaiKid]

Will further action depend on the names found in the ledgers ?

[wxpwzrd]

Inactive posts? Slap on the wrist? Or pay some hush money and cover it up.

[timewilltell]

The biggest loan sharks are those buying property under sale with right of redemption, many using banks to launder money and all supported by the justice system which sees buying stolen property as a house at 40% of value, with interest charged upfront and ongoing at 36 - 48% as all OK because otherwise the loan sharks would not be encouraged to buy.  This reasoning explained by a judge to me as victim and shown by several judgements.  Loan sharking will not be outlawed until the mindset changes.  Of course buying a stolen car at 50% of value outright and with no interest menas you are guilty of buying stolen goods.  Explain that to me in logic!

Edited October 27, 2016 by timewilltell

[Lupatria]

1 hour ago, NongKhaiKid said:

Will further action depend on the names found in the ledgers ?

You should know the answer by now...

[Brer Fox]

One of the earlier predictions/promises made by music composer PM Prayuth was that corruption would be eliminated in Thailand  within 20 years. This lot are obviously making the most of what little time there is left available.

The clock is ticking; only 19 years and 7 months to go. Perhaps the PM could hurry things along by composing a new song; this time urging fellow Thais to cease their corruption.

[NongKhaiKid]

9 minutes ago, Lupatria said:

You should know the answer by now...

It's a variation on an old theme, you know the one that says insanity is doing the same thing over and over expecting a different result ?

I'm trying with the same question.

[blackcab]

1 hour ago, timewilltell said:

The biggest loan sharks are those buying property under sale with right of redemption, many using banks to launder money and all supported by the justice system which sees buying stolen property as a house at 40% of value, with interest charged upfront and ongoing at 36 - 48% as all OK because otherwise the loan sharks would not be encouraged to buy.  This reasoning explained by a judge to me as victim and shown by several judgements.  Loan sharking will not be outlawed until the mindset changes.  Of course buying a stolen car at 50% of value outright and with no interest menas you are guilty of buying stolen goods.  Explain that to me in logic!

 

The company I work for buys property with the right of redemption. The maximum allowable intetest rate is 15 per cent per year. Typically we will offer 50 per cent of the assessed value, less interest.

 

If the assessed value is 1 million baht, we would offer 500,000 baht, less the 75,000 baht interest. So the seller would receive 425,000 baht. They have 1 year to repay the money.

 

If the property is redeemed we make 15 per cent interest. I think that's reasonable, considering we are straight forward to deal with and we have cash immediately available. Also consider that as a company that profit is taxable.

 

If the property is not redeemed we have to sell it, bearing in mind the Specific Business Tax and other fees we would incur in doing so.

 

Selling property is not quick and easy. We frequently sell the land at minimal extra profit (above the interest we charged) just so we can get our capital back.

 

As a company we would prefer it if all the sales were redeemed. We really don't want people's land. We want our money back to reinvest . 

[dabhand]

30 minutes ago, blackcab said:

 

The company I work for buys property with the right of redemption. The maximum allowable intetest rate is 15 per cent per year. Typically we will offer 50 per cent of the assessed value, less interest.

 

If the assessed value is 1 million baht, we would offer 500,000 baht, less the 75,000 baht interest. So the seller would receive 425,000 baht. They have 1 year to repay the money.

 

 

Thanks for your contribution and it sounds like your company plays it straight in your dealings with the right of redemption transactions.

 

I am aware of instances where loan companies, keeping within the legal interest rate, insist upon monthly repayments (principal + interest) rather than allowing the full 1 year period (additional periods can be agreed - not sure of the maximum but it could be as much as 5 years) for repayments. Indeed, some also charge penalties for any late payments, this being added to the sum to be repaid at the redemption date.

 

They tend to target the lower level market with a high probability of non redemption and therefore expect to profit from obtaining land / property at a heavy discount, but also from not repaying any of the monthly sums received before the borrower, in effect, walks away from the transaction because they have simply run out of financial options to keep making the repayments up to the agreed sum and within the agreed time period. An extension of the time period may be part of the deal but this is usually just seen by the loan company as a way to encourage more repayments and add to their profit margin. I can imagine that any attempt to force the loan company to repay any of these monthly payments would fall on deaf ears and would need legal action to have any chance of success - not really a possibility for most people who clearly have minimal financial resources, even if it was an option. With the added worry of personal threats coming into the equation, no doubt.    

 

Interested in whether your company includes monthly repayments as an option and, if so, how such monthly repayments are dealt with in respect of non redeemers.

 

If not your company, possibly you have knowledge of other loan companies who operate in the way I have noted. Interested in whether it is in effect 'common practice' for such monthly repayments not to be refunded to non redeemers. 

 

Any insight you can offer would be most useful.

 

[blackcab]

The length of time and method of redemption is a matter of contract. All the land office cares about is whether the loan was paid off on time.

 

We use yearly redemption as that is the easy, straightforward way. The contract can, however, state monthly terms. From a company's point of view this makes their cash flow immensely better.

 

The contract can state that if the sale is not redeemed the seller loses all payments made on deposit.

 

The only thing you can not do is extend (or shorten) the duration for the right to redeem. This duration is written on the back of the chanote, and it is not negotiable.

 

The only way to gain more time is to have the buyer cancel the right and then reinstate a new right. Which is unlikely to happen to be honest.

[orpheus454]

4 hours ago, timewilltell said:

The biggest loan sharks are those buying property under sale with right of redemption, many using banks to launder money and all supported by the justice system which sees buying stolen property as a house at 40% of value, with interest charged upfront and ongoing at 36 - 48% as all OK because otherwise the loan sharks would not be encouraged to buy.  This reasoning explained by a judge to me as victim and shown by several judgements.  Loan sharking will not be outlawed until the mindset changes.  Of course buying a stolen car at 50% of value outright and with no interest menas you are guilty of buying stolen goods.  Explain that to me in logic!

 

I'd like to give it a go, but you will have to explain your post to me in English first...

[SOTIRIOS]

...duhh....

 

..surprised....???

 

...and many 'respectable families'.......

 

...they use the state of shame the victims feel....against them.....

 

....stomping on the downtrodden....to prop themselves up......

 

...no character or scruples....only greed.....

 

...tenets....what tenets.....

 

...psycho greed is their god.......

 

 

 

[khundon]

^ can we have that again, but in English this time please. 

[Reigntax]

The police dont like competition to their loan shark business. Especially during tough times.

[nomadicjunkie]

18 hours ago, Pimay1 said:

If not for the soldiers it would have been business as usual.

 

Most would agree that the powers to be have a herculean task in rooting out corruption and/or out and out theft by people in power.

[TallGuyJohninBKK]

On 10/27/2016 at 0:24 PM, webfact said:

... the men were working for a man in Bangkok as part of an operation that has links to many provinces and involves payoffs of each "cell" to state officials of at least 50,000 baht per month.

 

Isn't it "state officials" that are supposed to be the ones rooting out corruption???

 

Kind of hard to be "rooting out" when instead they're "raking in."

Edited October 28, 2016 by TallGuyJohninBKK