German Loan Shark Suspect Takes Flight Before Raid

[The Deerhunter]

4 hours ago, malt25 said:

Rubbish ! On a regular basis I loan neighbours here in the village from 1000, to 10,000 baht. NO interest asked. Depending on the amount, I always get a small extra payment. Maybe only 100 baht on a small loan or 1,000 if 10,000 baht loan over a month or so.

I realize most here will think I'm crazy, but I have a great set of friends & neighbours & happy to assist where I can. My missus says that if the loan isn't repaid, the borrower would be looked down upon by all the village.

Contrary to popular belief, not all Thais are tarred with the same brush. I find the honesty of country people quite the opposite of "most" Thais in the cities & tourist centres. 

But hey ... just my opinion.

Not your opinion.  It is your experience.  And in the  countryside there are many poor and totally honest souls.   More than in the city I am sure.  Around here there are many I would trust and just as many I would not trust.  My staff are always into "next week" for some crisis or other but it has to be  a good story before we go over a week in advance.  But yes, we try to help & hope it brings us loyalty from them.  Sometimes it is a fine definition between loyalty and continuing to try and con us, but they have difficult lives on the edge of, or actually in poverty.    Could you live on 300b a day?????  Clearly, I could not.   To quote Mr Spock, as I do whenever talking about Thai living standards....... "It's life Jim, but not as we know it.!"

[The man from udon]

Well that's that,Thais win.weve got a loan shark in villid.rides around on big chopper giving it the large un.everyone knows what he does,probably even the police...can't see the locals going and reporting his activities.theyve only done it because they are loan free and gone back on their agreement.ive lent large sums and one 50,000 all to farangs and had to wait over a year to get them back,total nightmare.the last one was for 3 months and it's been 18 months and I'm still owed the best part of it today.all interest free while I was paying interest on my credit cards..I was a fool.never never will I part with 1 baht again.

[Broken Record]

14 minutes ago, The man from udon said:

Well that's that,Thais win.weve got a loan shark in villid.rides around on big chopper giving it the large un.everyone knows what he does,probably even the police...can't see the locals going and reporting his activities.theyve only done it because they are loan free and gone back on their agreement.ive lent large sums and one 50,000 all to farangs and had to wait over a year to get them back,total nightmare.the last one was for 3 months and it's been 18 months and I'm still owed the best part of it today.all interest free while I was paying interest on my credit cards..I was a fool.never never will I part with 1 baht again.

Yep, I was stiffed by a so called friend for 60,000 baht, that was years ago when 60,000 bought a lot more than it does today, frickin' coward could have had a word with me instead he changed phone number and address first then eventually  left Thailand when he ran of people to get money from.

Scumbag.

 

Edited November 26, 2016 by Broken Record

[The man from udon]

17 minutes ago, Broken Record said:

Yep, I was stiffed by a so called friend for 60,000 baht, that was years ago when 60,000 bought a lot more than it does today, frickin' coward could have had a word with me instead he changed phone number and address first then eventually  left Thailand when he ran of people to get money from.

Scumbag.

 

The other thing is if you or me needed a loan we would get totally blanked.

[Si Thea01]

1 hour ago, nosatisfaction said:

 

5555555, how much is your rate ? 1000Thb on 10000Thb in 1 month!!!!!!!!! Good samaritan. 10% a month= 120% a year, worse than any Bank

 

 

Why are you taking the mickey out of him?  He clearly stated that he asked no interest and when they pay him back they give a small extra payment (singular), not payments (plural) over a month or so. It appears that this is the borrower's gesture, not the lender's stipulation.

 

Now, if the loan is paid back in one month, that equates to 10 percent but as he wasn't clear as to the actual length of time, it could be even less,  like 5 percent for two months, so stop lambasting someone when you do not know all the circumstances.  And after all he is the one who is taking the risks and could well run foul of the law.

 

He never mentioned anything about 12 months, that's your assumption.  And why do people go to others for a loan, it's because the banks will  not lend such small amounts and if they did those who are borrowing, given the difficulty here in Thailand in obtaining a loan, they would never get one.

Edited November 26, 2016 by Si Thea01

[Mook23]

I borrowed a thai friend 500thb so he could bang his favorite lao karaoke "darling'. I told him before i didnt need back the money BUT instead 12 large leos, one bottle treat each time i met him. He considered it a good deal. Leos were 51thb at that time. Thats 612thb return on 500 thb loan. 55555555555

[acid thunder]

On ‎11‎/‎25‎/‎2016 at 3:46 PM, lostinisaan said:

One of the local loan sharks got killed in bright day- light when he wanted to eat his Somtam. Two guys on a motorbike wearing helmets stopped, one walked to his table and shot him twice in his head.

 

My wife's cousin has moved in to the loan sharking business with her current boyfriend and doing rather well apparently.  She previously served two years in prison for drug dealing along with her previous boyfriend.

 

It's fairly obvious this isn't a business that they're going to give up anytime soon so I sincerely hope the BiB catch up with them before the local hoodlums do.  Still, we can't live others lives for them.

[DogNo1]

Don't understand the math.  At a daily rate of 20 Baht per 1,000, the interest for borrowing 1,000 for a week would be 140 Baht, not 1,140.  That would be the amount that would need to be paid to pay off the loan.  You don't say whether the interest would then be added to the loan amount. That's what the payday loan shysters do in the US.  My observation here and in the Vietnam community in California is that it isn't.  Even so, it works out to a yearly interest charge of 1,140.  That's 114%. There are plenty of poor workers in the US who become alarmingly indebted as their unpaid interest is incorporated into their loan amount at the end of the month and it's all legal! Google payday loans and you'll find heart-rending stories. Also, I think that TV readers would be astonished at the huge number of homeless people lining the streets in southern California.

[billd766]

11 minutes ago, DogNo1 said:

Don't understand the math.  At a daily rate of 20 Baht per 1,000, the interest for borrowing 1,000 for a week would be 140 Baht, not 1,140.  That would be the amount that would need to be paid to pay off the loan.  You don't say whether the interest would then be added to the loan amount. That's what the payday loan shysters do in the US.  My observation here and in the Vietnam community in California is that it isn't.  Even so, it works out to a yearly interest charge of 1,140.  That's 114%. There are plenty of poor workers in the US who become alarmingly indebted as their unpaid interest is incorporated into their loan amount at the end of the month and it's all legal! Google payday loans and you'll find heart-rending stories. Also, I think that TV readers would be astonished at the huge number of homeless people lining the streets in southern California.

 

You are correct but if you dont pay back the original 1,000 baht you are paying interest on 1,140 baht on day 8.

 

Try following it through at 20 baht per day on 1,000 baht for 365 days and see what the total is.

 

I did it once and have lost it and I cant be bothered to do it again.

[DogNo1]

I see.  The interest is added to the principal amount until the loan is paid off.  The rate of 20 Baht per 1,000 assumes an interest rate of 2% per week. It would be easy to do an Excel spreadsheet to calculate the interest progressively assuming that none of the loan was repaid for a year.  So for example, the interest for the second week (on a principal amount of 1,140) would be 22.8 Baht leading to a principal amount at the end of the second week of 1,162.8 Baht.  

I have done the spreadsheet and found that at the end of the 52nd week, the principal amount would be 2,745.4 Baht and the interest would be 54.9 Baht assuming an initial principal amount of 1,000 Baht.  I have attached the spreadsheet and to find out how that would look for 5,000 Baht, just change the amount in cell B2 to 5,000 and the result will automatically appear.

Thai Loan.xlsx

[Rob13]

On 11/25/2016 at 1:14 PM, Anthony5 said:

From the article "  It is also illegal for foreigners to loan money to Thais. "

 

I very much doubt that.

 

Maybe because it's a job a Thai can do.

[Anthony5]

9 minutes ago, Rob13 said:

 

Maybe because it's a job a Thai can do.

 

When a foreigner can officially register a loan to a Thai at the land department, and have his name written on the back of the chanote as such, I suspect it must be legal.

[gemguy]

True Story.

An American man I knew and married to a Thai women,  observed the wife's business of loaning money to Thai people as a better business than his and eventually helped the wife expanded on her money loaning business.

Maximum short term loan, at the time, was 10,000 Baht at 5% interest while who ever borrowed the money had to give the wife a motorcycle or sometimes a car as collateral for the loan along with ownership papers and the keys to the motorcycle or car along with the signature understanding if the loan was not paid back in a specific time period then the motorcycle or car was hers to keep and sell to recover her money. Any money over the amount owed would be given to the owner of the vehicle.

In the contract it stipulated if she had to sell the vehicle to recover her money then there would be an additional charge of 10 % more charged on the money loaned.

The small business originally started by way of advancing money to her employees and deducting their wages at 5 % to sometime 10% as they were commonly coming to her and asking for advances on their wages for any number of problems they had.

Eventually the workers introduced her to friends or other people wanting short term loans and needing them quickly.

If they did not have a motorcycle or car that they could leave with her for collateral then she refused to loan the money rather than based on good will and promises made from the person borrowing the money.

The lady herself told me you can not trust them to pay back the money while they think if you can loan them the money then you can afford to lose the money while not paying back money is no lose of face...but near everything else is a loss of face...but reneging on agreements and or not paying back money borrowed is not a loss of face......not at all....concerning Thai people....and her words...not my words.

The American man was impressed by the wife's business acumen and told me some months the wife makes more money than he did with his small business enterprise that he claimed was a pain in the ass......

That was back in 1989 and 1990 while I knew he sold out the business he was doing as he called me and asked me if I wanted to buy the equipment or knew anyone that would be interested.

When I went over to look at the equipment he elaborated more on his wife's flourishing  business while she was making money and the both of them agreed that loaning money was more lucrative than the husbands small business that she had helped him build but was now occupied by her money loaning activities.

I do not know if she would have been classified as a loan shark...lol

I did not see the man or his wife since then but back then I was made aware that there is a thriving business for some made from short term loans made to Thai people in need of money, quickly.

 

Cheers

 

[Sydebolle]

So the Thai-Chinese loanshark don't like if an alien is fishing in their pond. In Buengkan (east of Nong Khai) the going rate is 4% per month ............. 

[FredNL]

It is also illegal for foreigners to loan money to Thais.

 

For Thai is receiving money is NOT illegal. Paying the money back makes is illegal.

[Si Thea01]

52 minutes ago, FredNL said:

It is also illegal for foreigners to loan money to Thais.

 

For Thai is receiving money is NOT illegal. Paying the money back makes is illegal.

 

My wife, who is Thai, found your comment amusing and completely false.  She stated that the only thing illegal, if not an illegal money lender and charging exorbitant interest, is if they don't pay it back, which is stealing.  I see that many on here have been touched by the latter.  There is an old saying that you never lend money, your car or your wife, it creates problems all round.

[gk10002000]

On ‎11‎/‎24‎/‎2016 at 9:14 PM, Anthony5 said:

From the article "  It is also illegal for foreigners to loan money to Thais. "

 

I very much doubt that.

To loan money, maybe not.  But to expect money back with interest then it is probably considered a business at the very least.

[kingalfred]

Germans coming to Thailand loaning money to locals at stupid interest rates? Some rather stupid locals


Sent from my iPhone using Thaivisa Connect

[sioux2012]

On 11/25/2016 at 5:53 PM, dotpoom said:

" It is also illegal for foreigners to loan money to Thais."

Hope the Mrs. doesn't find that out.

 

you mean ....you HOPE she finds that out

[KhunBENQ]

The German "loan shark" has written a very comprehensive counterstatement.

It's just too long that I am not up to translating it.

It was published in a German language online news source (Der Farang).

 

To his description the whole thing started in March 2011 with a loan of 10'000 Baht to the village headman to be repaid the "other day". His ex-wife was clever enough to fill a standard form.

(stating 7.5% per year).

When after two years still not seen a Baht the German asked police for help.

They pointed him to the district office (amphoe) where they tried to get rid of him.

But finally he got an appointment with the amphoe head.

When the village headman got aware he came to the German's house.

He insulted him, shouted violently, threw 10'000 Baht to the ground, spat at him and left.

During the two years the headman told villagers that they could get a loan at the German.

He gave loans (at reasonable conditions) unknowing that he is forbidden to do (of course the headman did not hint him).

He had arrived in 2010 and little Thai (language) knowledge at that time.

 

The counterstatement also tell the complete long story of his failed relation with his ex-wife.

An exemplary story so to say containing about all ingredients of a recipe for disaster.

But even to the usual scale it's a highly violent story.

The German has won more than one legal fight with his ex.

No he is convinced that she wants to use every measure to have him kicked of from the country.

One of them: he is loan-shark, he worked illegally.

 

He was never on the run, his trip to Phuket Bangkok was planned 3 weeks ahead. He got in contact with police and cooperated anytime.

Fleeing to Bangkok(!) was a ridiculous statement in the report anyway.

 

 

[theoldgit]

Off topic post removed.

[kraxlhuber]

On ‎11‎/‎25‎/‎2016 at 0:16 PM, fruitman said:

There must be hundreds of loansharks but they go after the German????

 

I was also asked to loan many to several Thai but i refused. Guess they offered the German a good rate so he agreed to loan them cash. Then more came to him and he agreed again.

 

Not a smart move but i don't think he was searching his customers himself, which German wants that? 

 

Almost ALL my wife's collegues loaned money to another college from Korat to expand his business. He promised to pay them a good interest (very high) but a year later he quit his job and they all never heard of him again. He ows them about 500.000 baht in total.

 

Also another girl loaned money from the whole department, quit her job and they never got it back.

 

Never loan money to a Thai is the lesson to be learned.

 

not even in the family, its throwing GOOD money after BAD, a write off, not even give your wife money to loan somebody after all shes Thai und You are a walking ATM machine TIT

[kraxlhuber]

On ‎12‎/‎2‎/‎2016 at 0:07 PM, KhunBENQ said:

The German "loan shark" has written a very comprehensive counterstatement.

It's just too long that I am not up to translating it.

It was published in a German language online news source (Der Farang).

 

To his description the whole thing started in March 2011 with a loan of 10'000 Baht to the village headman to be repaid the "other day". His ex-wife was clever enough to fill a standard form.

(stating 7.5% per year).

When after two years still not seen a Baht the German asked police for help.

They pointed him to the district office (amphoe) where they tried to get rid of him.

But finally he got an appointment with the amphoe head.

When the village headman got aware he came to the German's house.

He insulted him, shouted violently, threw 10'000 Baht to the ground, spat at him and left.

During the two years the headman told villagers that they could get a loan at the German.

He gave loans (at reasonable conditions) unknowing that he is forbidden to do (of course the headman did not hint him).

He had arrived in 2010 and little Thai (language) knowledge at that time.

 

The counterstatement also tell the complete long story of his failed relation with his ex-wife.

An exemplary story so to say containing about all ingredients of a recipe for disaster.

But even to the usual scale it's a highly violent story.

The German has won more than one legal fight with his ex.

No he is convinced that she wants to use every measure to have him kicked of from the country.

One of them: he is loan-shark, he worked illegally.

 

He was never on the run, his trip to Phuket Bangkok was planned 3 weeks ahead. He got in contact with police and cooperated anytime.

Fleeing to Bangkok(!) was a ridiculous statement in the report anyway.

 

 

 Loans are only for Thais. BEWARE, a lot of Thai "wifes  are getting after their husbands, claiming that he is acting insane or Phi Baa,  and when she is going to the police  they tell the (farang ) or Thai husband to see a shrink, and get a medical statement, the husband always looses out. First Thai police cannot order Jack-Shit, the case has to go to court and then what?

The bitch is after all that money, car, house, land even a prenuptial agreement is not worth the paper written on it, a loan is only for Thai's xenophobic lot

  and all laws too, case of Farang Dong ( pickled)

On ‎12‎/‎2‎/‎2016 at 0:07 PM, KhunBENQ said:

 

 

[kraxlhuber]

On ‎11‎/‎27‎/‎2016 at 3:23 PM, FredNL said:

It is also illegal for foreigners to loan money to Thais.

 

For Thai is receiving money is NOT illegal. Paying the money back makes is illegal.

 

Is it illegal to Farangs to loan to Farangs???

 

[SoFarAndNear]

When does stuff like this appear on National News Channel 3 or 7? The <deleted>*"ing Police and Military raided his home. Every public prosecutor with 1 brain cell would have smelled that this all is just a massive injustice. Unless they hoped the German fled the country and all his assets were shared between ex wife and involved officials. Thailand as it's best.

[Thechook]

And I assume the girl friend will get off Scott free.  It was all his doings, he sourced the customers, kept the books and carried out the intimidation.  I guess when he goes to jail and then deported she will get the house and collect the unpaid loans.