Thai police arrest 19 members of loan shark gang in Surin

Discussion in 'Surin News' started by gotlost, Jun 18, 2020.

  1. gotlost

    gotlost Surin Founding Father

  2. Prakhonchai Nick

    Prakhonchai Nick Surin Founding Father

    The gang prey on nobody. They offer a service...take it or leave it! No compulsion. The borrowers are total idiots!
    Yorky likes this.
  3. Yorky

    Yorky Surin Founding Father

    I didn't appreciate that the said transaction was illegal.

    Surely if someone asks me for ฿10,000.00 loan for one week and I tell him OK, but you pay back ฿20,000.00 next week that's a legitimate business transaction is it not?
  4. Prakhonchai Nick

    Prakhonchai Nick Surin Founding Father

    Technically yes, but the almighty Thai government limit the amount of interest one may charge for a loan at around 2.5%/month. Most loans in the rural Thai villages are given at rates close to that, though some sharks charge up to 5%/month. The main problem is where gambling (hi-lo cards etc) occurs. Loan sharks often hang around outside. Gamblers always think they will win in the next hand, and having exhausted all their finances will request an instant loan from a shark and not mind paying an enormous interest rate. After all, they are going to win big in ther next few minutes..........but sadly never do.

    When cases end up in court where loans are not repaid. if the contract specifies an interest rate higher than that legally permitted, the judge normally insists that only the amount of the original loan be repaid, with no interest attaching.
    nomad97, Merlin, Wanderer and 5 others like this.
  5. Coffee

    Coffee Surin Dinosaur

  6. Prakhonchai Nick

    Prakhonchai Nick Surin Founding Father

    Most major Thai banks are permitted to charge up to 18% interest on loans and credit cards.

    Micro-finance (village loans etc ) can and usually charge more. This from 7 years ago, but still believed to be valid

    The Ministry of Finance decided to cap microfinance interest rates at 36% in 2013,
    Microfinance lenders may be allowed to charge interest at more than 28% a year, as such rates are still far below what loan sharks collect, says a senior central bank official.
    Coffee likes this.
  7. Yorky

    Yorky Surin Founding Father

    And give me 1/18th of that!
  8. Prakhonchai Nick

    Prakhonchai Nick Surin Founding Father

    Best interest rate I can find and access today is in the UK. NS&I Income bonds. 1.16% monthly interest tax free. Instant withdrwals..

    Just returned from kasikorn bank PKC. Not been for months. Temp check, fill in name and tel no, social distancing, screen on the counter between customer and teller. Hopefully won't need to go again this year. needed to put some cash on the account.
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