21 November, 2009
38 loan shark debt collectors held
10 motorcycles, lists of borrowers seized
21/11/2009
NAKHON RATCHASIMA : Local police have rounded up 38 debt collectors in a campaign to stamp out loan-sharking.
The operation comes on the heels of a financial scheme launched by the government on Thursday to help the poor break free from illegal lenders and their exorbitant interest rates.
Dechawat Ramsompob, acting chief of Police Region 3, said the arrests were part of the bureau's crackdown on "loan leeches".
He said the drive would cover all the eight provinces under the bureau's jurisdiction, which is in charge of the lower Northeast.
The suspects were arrested in several districts including Muang and Pak Chong. Ten motorcycles and lists containing the names of debtors were confiscated in the raids, said Pol Maj Gen Dechawat.
He said the suspects were hired by illegal lenders to collect the debts on their behalf from the borrowers.
Police would like to see them prosecuted and tried in court. But if convicted, they could only be fined 900 baht each.
The crackdown will continue until all the illegal lenders are nailed, Pol Maj Gen Dechawat said. "Some of them admitted they offered the loans but denied there were takers," he said.
Police are seriously cracking down on the loan sharks. They shouldn't be allowed to use force or intimidate borrowers to pay, he said.
"These illegal lenders demand a 200% interest and collect it on a daily basis.
"For example, people who borrow 1,000 baht are required to pay a daily interest of 50 baht.
"This makes the lives of borrowers really difficult," he said.
There are at least 100 major loan sharks in the lower Northeast alone, said a police source.
Most of the illegal lenders are known to have close affiliations with police or other senior authorities who help them evade criminal charges.
The crackdown on underground lending is unlikely to bear fruit if borrowers refuse to offer their full cooperation.
The source said the borrowers not only need the money but also feel intimidated by the lenders' influential network.
"The lenders have the borrowers' consent when they charge high interest rates. Borrowers are reluctant to cooperate with police as they fear for their safety," said the source.
The source noted that during an economic slowdown, the business of illegal lending tends to pick up.
Source" Bangkok Post
21/11/2009
NAKHON RATCHASIMA : Local police have rounded up 38 debt collectors in a campaign to stamp out loan-sharking.
The operation comes on the heels of a financial scheme launched by the government on Thursday to help the poor break free from illegal lenders and their exorbitant interest rates.
Dechawat Ramsompob, acting chief of Police Region 3, said the arrests were part of the bureau's crackdown on "loan leeches".
He said the drive would cover all the eight provinces under the bureau's jurisdiction, which is in charge of the lower Northeast.
The suspects were arrested in several districts including Muang and Pak Chong. Ten motorcycles and lists containing the names of debtors were confiscated in the raids, said Pol Maj Gen Dechawat.
He said the suspects were hired by illegal lenders to collect the debts on their behalf from the borrowers.
Police would like to see them prosecuted and tried in court. But if convicted, they could only be fined 900 baht each.
The crackdown will continue until all the illegal lenders are nailed, Pol Maj Gen Dechawat said. "Some of them admitted they offered the loans but denied there were takers," he said.
Police are seriously cracking down on the loan sharks. They shouldn't be allowed to use force or intimidate borrowers to pay, he said.
"These illegal lenders demand a 200% interest and collect it on a daily basis.
"For example, people who borrow 1,000 baht are required to pay a daily interest of 50 baht.
"This makes the lives of borrowers really difficult," he said.
There are at least 100 major loan sharks in the lower Northeast alone, said a police source.
Most of the illegal lenders are known to have close affiliations with police or other senior authorities who help them evade criminal charges.
The crackdown on underground lending is unlikely to bear fruit if borrowers refuse to offer their full cooperation.
The source said the borrowers not only need the money but also feel intimidated by the lenders' influential network.
"The lenders have the borrowers' consent when they charge high interest rates. Borrowers are reluctant to cooperate with police as they fear for their safety," said the source.
The source noted that during an economic slowdown, the business of illegal lending tends to pick up.
Source" Bangkok Post
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