News Forum - Pattaya loan shark threatens to cut off debtor’s finger

[Marc26]

13 minutes ago, Skip said:

Which law... loaning money at illegal rates or borrowing money at illegal rates and then not paying it back.

Loan sharks break one law... your disadvantaged people (stupid people) break 2 laws

Although I actually agree with you in pretty much everything you have said about the matter

If you borrow, you should pay it back and you should understand the terms you are borrowing at

 

But......

 

The borrowers have not broken any laws

 

1st you said it wasn't illegal to lend at the rates they do.....it is

 

Now you are imposing laws that don't exist 

 

Let's live in the real world here 

[DesperateOldHand]

24 minutes ago, Marc26 said:

Although I actually agree with you in pretty much everything you have said about the matter

If you borrow, you should pay it back and you should understand the terms you are borrowing at

But......

The borrowers have not broken any laws

1st you said it wasn't illegal to lend at the rates they do.....it is

Now you are imposing laws that don't exist 

Let's live in the real world here 

I'd be more curious to know what he means by illegal rate? 

[Mohandas]

And what of the banking and financial institutions? 

Perceived ethos and moral standing? 

[Chaimai]

2 hours ago, Skip said:

Which law... loaning money at illegal rates or borrowing money at illegal rates and then not paying it back.

Loan sharks break one law... your disadvantaged people (stupid people) break 2 laws

No.  

Score is 1-1

 

The agreement is illegal to start with.

 

 

 

 

 

 

 

 

[Prosaap]

It dos not mater if its illegal or not you know what you sign up to they just not care they want the money now pay back is something for tomorrow they all know how it works

they borrow way to easy not think about if and how to pay back and then come with a sad story nobody else to blame then yourself   

[Chaimai]

8 hours ago, DesperateOldHand said:

I'd be more curious to know what he means by illegal rate? 

 

 

15% per annum is the maximum rate of interest that can be charged on loans.

 

Many loans to the uneducated carry a rate of between 5% to 10% per month.

Loan sharks don't tend to use paper contracts as usury is illegal in Thailand as a result of the Act Prohibiting the Collection of Interest at an Excessive Rate B.E. 2560 (2017).

 

A paper contract with a 7 per cent per month interest rate would be all the evidence needed for a prosecution. The maximum punishment is 2 years imprisonment and a 200,000 baht fine. There would also a good chance of being prosecuted for money laundering which means all available assets would be immediately seized and it would be very, very difficult and costly to get any of them back. Land, houses, vehicles, bank accounts, cash, jewelry, expensive electronics, etc all gone.

 

Is a usurious interest rate enforceable? Not in a Court, but then loan sharks never aim to be in Court. Their method of enforcement is of a different kind.

 

 

[TedG]

 I don't think the people taking out these loans understand the math behind 15% per month interest rates.  Someone should cut off the loan sharks finger.

[Faz]

9 hours ago, Mohandas said:

And what of the banking and financial institutions? 

For personal loans, forget it, unless you can provide salary slips from an employer.

[Faz]

29 minutes ago, TedG said:

 I don't think the people taking out these loans understand the math behind 15% per month interest rates.  Someone should cut off the loan sharks finger.

15% per month 

Case in question, a friend of the wife's borrowed 40K from a loan shark, agreeing to repay the loan at 800 BHT per day. She couldn't read and didn't understand, nor was it explained, that that was only the daily interest repayment. The loan of 20K still remained until such time she paid 20K in one full single payment.

That's a 2% per day interest rate, with nothing paid off the loan amount.

[Marc26]

10 minutes ago, TedG said:

 I don't think the people taking out these loans understand the math behind 15% per month interest rates.  Someone should cut off the loan sharks finger.

I think most do, I think people are letting them off the hook a bit

they are fully aware

 

But just like anywhere, people in the lower class demographic have money issues, haven't been taught a lot of fiscal responsibilty and live month to month

 

So getting that 10-20k, and having to just pay back 1k-1500/mo seems ok to them

[Marc26]

20 minutes ago, Faz said:

15% per month 

Case in question, a friend of the wife's borrowed 40K from a loan shark, agreeing to repay the loan at 800 BHT per day. She couldn't read and didn't understand, nor was it explained, that that was only the daily interest repayment. The loan of 20K still remained until such time she paid 20K in one full single payment.

That was 2% per day interest rate.

She may not have been able to read the contract, but she would know 800 baht/day is not realistic for her to pay back

 

And I am surprised she couldn't find a regular loan shark at 10-15%/mo

Seems plenty around

[Faz]

14 minutes ago, Marc26 said:

She may not have been able to read the contract, but she would know 800 baht/day is not realistic for her to pay back

800 BHT a day was realistic for her to pay back, but she didn't realise that was purely the interest repayments and the 20K loan remain unpaid.

Loan sharks don't charge 10-15% a month.

[Marc26]

1 hour ago, Faz said:

800 BHT a day was realistic for her to pay back, but she didn't realise that was purely the interest repayments and the 20K loan remain unpaid.

Loan sharks don't charge 10-15% a month.

I always thought 10-15%/mo was the standard, but I am not well versed in loan sharking in Thailand, so I am naieve to what it is

 

When my wife did it, she charged 10%

But the principle loans weren't ever paid off, but all her customers never missed a monthly interest loan

After 6 months of not being paid back, she upped the interest to 15%

Again, no one missed a payment but the loans never got paid back

 

After close to 18 months(maybe 2  years) I suggested she forgive the loans, she made more than enough money off the original loans and the borrowers never missed a payment 

 

Not a business I wanted her to be involved in, even though it seemed people looked at it as her "helping" them out

[Skip]

19 hours ago, Chaimai said:

I actually agree with all that - except for the illegality of the agreements with illegal rates of interest.

In most cases the borrowers are so stupid/desperate that they have no idea what they are signing. A vast number cannot read or write.

There's no signing going on... the borrower asks for money... the loan shark tells them the terms of the loan and gives them the money... 

[DesperateOldHand]

So.......if he gives up a finger does he receive a discount on the loan?

[Skip]

19 hours ago, Marc26 said:

 

The borrowers have not broken any laws

 

 

There-in lies the problem... it takes two hands to clap... 

[HiuMak]

 

Psalm 37:21

"The wicked borrows but does not pay back, but the righteous is generous and gives."