Police plot new campaign looking to hook loan sharks

The Royal Thai Police (RTP) will launch a fresh crackdown on loan sharks, ordering police agencies nationwide to submit a list of illegal lenders this month.

The RTP has instructed provincial police regions across the country to compile names of all illegal loan operators in their respective areas, deputy national police chief Chalermkiat Srivorakan said yesterday. He was speaking at a press conference to launch a loan shark suppression unit at the RTP.

The list will be forwarded to the RTP by April 10 in order for search warrants to be issued to gather evidence to prosecute unscrupulous lenders who charge exorbitant interest rates or threaten their victims.

Investigations will also be widened to track down businessmen who fund the illegal activities.

Detailed information on loan sharks operating across the country, including companies linked to their business, will be recorded on a database at the RTP, Pol Gen Chalermkiat added.

Meanwhile, assistant national police chief Suwira Songmetta said the government has recently allowed certain lenders to register with the state.

They are allowed to offer two types of loan: nanofinance — applicable nationwide with 50 million baht of authorised capital and a maximum loan of 100,000 baht for each debtor. The other is picofinance — providing loans at a provincial level, with five million baht of authorised capital and a maximum loan of 50,000 baht for each debtor. These lenders can charge an interest rate not exceeding 36% per year.

They must also report the number of debtors they have to financial agencies authorised under the Finance Ministry.

Pol Gen Suwira said loan business registration aims to encourage illegal lenders to become legitimate and give people wanting to avoid complicated bank loan procedures another option.

He said anyone suffering at the hands of loan sharks can report them on police hotlines, 1359, 1599 or 191.