Cops net big-time loan sharks

Blitz on lenders in Northeast ratchets up

UDON THANI: Police yesterday arrested eight major loan sharks in the northeastern region.

The arrests are a major boost for the military government’s campaign to do away with loan sharking, especially since the arrested are known major figures in Udon Thani — known as a province with serious loan sharks problems.

The arrests come on the heels of a major crackdown two weeks ago when the police arrested 14 other loan sharks, some of whom charged an interest rate as high as 36% annually, instead of the 15% per year permitted by law. In the latest case, the police had tracked the suspects and gathered evidence over a long period based on complaints made by borrowers. Once police had enough evidence to arrest the men, an arrest warrant was obtained earlier this week, said Pol Maj Gen Surachate Hakparn, deputy tourist police chief.

The eight loan sharks were arrested early yesterday morning. They were charged with charging exceptionally high interest rates.

Apart from charging high interest rates, these loan sharks also made vast profits from seizing property which borrowers had placed as collateral.

Loan sharks are a major problem in Thailand, especially in the Northeast and South. Residents there prefer to deal with loan sharks rather than commercial banks because of accessibility and convenience, according Pol Maj Gen Surachate. He appealed to the public and borrowers to report other loan-shark activities to the police.

The government relaunched its campaign to crackdown on loan sharks in May. The campaign went into high gear after Deputy Prime Minister Gen Prawit Wongsuwan earlier this week ordered police, soldiers and local authorities to intensify the crackdown.

Within a week, in Udon Thani alone, 90 people lodged complaints against loan sharks. Some of them led to arrests while in other cases debt resolution, according to Pol Maj Gen Surachate. He said loansharking methods vary from place to place.

Loan sharks in the Central region usually take assets such as vehicles as collateral, while those in Northeast normally take property such as land title deeds.

“That leads to more problems, especially with family members who might become landless or even homeless when borrowers cannot repay their debts or the interest charged,” he said.

Pol Maj Gen Surachate said the latest crackdown shows that the campaign against loan sharking is working. He said the success is a result of people and borrowers coming forward to provide police with information.

Police, he said, would examine the assets of all eight loan sharks. Police have already frozen them. Land title deeds were to be returned to borrowers.

Pol Maj Gen Surachate said: “This case is being separated into two investigations. The first is to look into illegal loan shark activity and the other into possible money laundering”.

Since May, Udon Thani police have returned 166 land title deeds covering 355 rai worth 151 million baht to 156 borrowers.