Thai govt pushes forward project to tackle illegal debts

[webfact]

Govt pushes forward project to tackle illegal debts

 

BANGKOK, 6 March 2017 (NNT) – The government has continued on the project to concretely tackle illegal debts, aiming to eliminate over 200,000 loansharks within two years. 

Korpsak Phutrakul, the Assistant to Minister Attached to the Prime Minister’s Office (PMO), said that the Prime Minister has launched a project to tackle Thailand’s illegal debt problems on March 1 and the government will systematically work with relevant officials to eliminate informal debts by law enforcement and the government’s nano finance credit measure which allows borrowers of informal debt to access formal low-interest loans. 

The government has also set up a committee to act as a mediator between borrowers and creditors and a committee to restore the potential of illegal debtors. The move is aimed at eliminating over 200,000 loansharks within two years.

 

-- nnt 2017-03-06

[Raymonddiaz]

in other words, we are going to stay 2 more years.

[Get Real]

33 minutes ago, Raymonddiaz said:

in other words, we are going to stay 2 more years.

It´s really not that interesting, if the purpose isn´t to borrow at an high interest rate as long as possible.
However, like I said befor, it´s a good goal and idea. Let´s just hope it works and get of the ground.

[mick220675]

It sounds a good idea, but without providing the poor with other sources of credit it will not succeed.

 

Our local branch of the farmers bank will only lend to farmers who have an account, and have stopped opening new accounts, those who do not put more than 50,000 in  there account or are over 60 years old have seen there accounts closed.

 

The private banks will not lend money to those who do not have a salary.

 

The high street finance company's require a land/car ownership documents, high interest rate often results in loss of there farms/cars.

 

So if farmer's and there family.s don't have a land paper, or have already financed it, the lone sharks are there only option. Looking around our village of 30 farms/houses 90% are in trouble after borrowing money.

Edited March 6, 2017 by mick220675
gardening

[mikebell]

Does 'a privet bank' specialise in hedge funds?  (Sorry I couldn't resist.)

[oxo1947]

40 minutes ago, mick220675 said:

It sounds a good idea, but without providing the poor with other sources of credit it will not succeed.

yer-- agree Mick.

Is 16--24% PA + a healthy profit on any goods not redeemed, classed as loan shark ?

 

Remember the government is the largest single owner of ( rong rub jum num )pawn shops.

Quote

Prices of collateral items named by pawnshops do vary. A full-set DSLR camera which is worth over 20,000 baht, for example, might earn up to 4,000 baht at a private pawnshop while a state-owned shop might just give 2,000 baht at most.

 

A staff at a state-owned pawnshop shows pawned items.

 

 

[chainarong]

59 minutes ago, mick220675 said:

It sounds a good idea, but without providing the poor with other sources of credit it will not succeed.

 

Our local branch of the farmers bank will only lend to farmers who have an account, and have stopped opening new accounts, those who do not put more than 50,000 in  there account or are over 60 years old have seen there accounts closed.

 

The private banks will not lend money to those who do not have a salary.

 

The high street finance company's require a land/car ownership documents, high interest rate often results in loss of there farms/cars.

 

So if farmer's and there family.s don't have a land paper, or have already financed it, the lone sharks are there only option. Looking around our village of 30 farms/houses 90% are in trouble after borrowing money.

I wonder whatever happened to the original Thai Farmers bank...................................

[BEVUP]

1 hour ago, chainarong said:

I wonder whatever happened to the original Thai Farmers bank...................................

Same thing year after year

You have to wander who's at the top

& as for the farmers bank there all in dept to that to thats why they go else where & to all family members

[Stargeezr]

There was a time when foreignors could open and have bank accounts. I had two accounts,

but foolishly closed my Thai Farmers Bank, account. I keep hoping that us travellers and expats

will be able to have our own accounts in the future

Geezer

[Retiredandhappyhere]

2 hours ago, Stargrazer9889 said:

There was a time when foreignors could open and have bank accounts. I had two accounts,

but foolishly closed my Thai Farmers Bank, account. I keep hoping that us travellers and expats

will be able to have our own accounts in the future

Geezer

I am a retired ex-pat and have had no trouble at all in opening bank accounts during my 13 years here and I am sure I am not alone.  Did I misunderstand your comment?

[bazza73]

4 hours ago, Stargrazer9889 said:

There was a time when foreignors could open and have bank accounts. I had two accounts,

but foolishly closed my Thai Farmers Bank, account. I keep hoping that us travellers and expats

will be able to have our own accounts in the future

Geezer

Like retired and happy, I don't understand. All I've needed to open a new account is my passport, mobile (cell) number, address and a lump of cash as an initial deposit. Plus a bit of patience while multiple forms are filled out.

[lvr181]

With immediate effect, declare all illegal debts null and void!    Or is that too easy?

[clockman]

Every village has underground lottery, and loan sharks. Been like this for ever!

[anon4546543]

There is a loan shark in the village where I live. Charges an astounding 10% per month. Yet many people use her for small loans. For collateral, the loan shark keeps ID papers, Chanote on land and car and motor bike keys. She is an extremely rich woman with absolutely no morals.

[anon4546543]

3 hours ago, lvr181 said:

With immediate effect, declare all illegal debts null and void!    Or is that too easy?

Yes, that would be far too easy. Everyone with sufficient spare cash to start up a loan shark business has contacts. Important contacts, many of whom use the loan sharks for business.

Lots of innocent bodies would be found in gutters and rivers if they refused to pay back the loan. No one is forced to use loan sharks except that poor people would have no means to pay small debts without them. The banks will not give loans to anyone without a job or substantial collateral.

The shame is that there is no small loans bank or (and don't take this the wrong way) a peoples bank. If I had a few million spare baht and government approval, I would be tempted to start up a small loan low interest bank. But it would probably be me that was then found in a gutter or river.

 

[Moonmoon]

Yes please, everyday my shop front gets littered with business cards providing personal loans. I need it to stop! I dont want to sweep or pick it up anymore.

[localczar]

well, should start with k bank...and the others, to follow. eventually all the banks will be shut down.

[localczar]

9 hours ago, Retiredandhappyhere said:

I am a retired ex-pat and have had no trouble at all in opening bank accounts during my 13 years here and I am sure I am not alone.  Did I misunderstand your comment?

move your banking to Sg or Guernsey....thai banks don't deserve the business.

[TallGuyJohninBKK]

1 hour ago, spiderorchid said:

The shame is that there is no small loans bank or (and don't take this the wrong way) a peoples bank.

There are at least a few smallish people's banks, apparently known here as co-ops, though they don't seem to operate under the regular Thai banking rules and regulations.

 

These are the ones that seem to keep showing up in the large embezzlement cases, such as the one where the former CEO gave billions of baht of other people's money to the infamous sect temple in BKK that's been under siege. Very generous of him to be giving away his depositors' money!!!

 

[bangrak]

'Illegal money lenders', yes, no doubt, ...but 'Illegal debts', I beg you pardon, I don't know how it sounds in Thai, but in English to me it's rubbish! Oh well, with 'uncle' pretending to make of Thai a leading World language, knowledge of English in not going to get any better soon I guess...

[anon4546543]

2 hours ago, TallGuyJohninBKK said:

There are at least a few smallish people's banks, apparently known here as co-ops, though they don't seem to operate under the regular Thai banking rules and regulations.

 

These are the ones that seem to keep showing up in the large embezzlement cases, such as the one where the former CEO gave billions of baht of other people's money to the infamous sect temple in BKK that's been under siege. Very generous of him to be giving away his depositors' money!!!

 

Yes I agree. But I am talking about a fully regulated bank that could supply low cost and low interest rates to poor people without them being forced to use loan sharks. Surely a different topic to fraudsters even though you use the ! exclamation marks so freely. I am talking about low charge interest rates to the poor and are regulated. It works in India, no reason for it not to work here. You are stamping your feet with exclamation marks.

[TallGuyJohninBKK]

Yes, and my ! point was, the few such local banking options that seem to exist for under-banked populations here seem also to be unusually subject to fraud and manipulation.