Jump to content

Archived

This topic is now archived and is closed to further replies.

webfact

Loan Sharks May Be Registered In Bid To Curb Interest Rates: Thailand

Recommended Posts

If the interest rates were capped, the registered loan sharks would be little better than the banks and not lend without security. What the authorities SHOULD do is enforce the law and bring the sharks to book. I have first hand experience at trying to help someone get out of the clutches of one of these people and was even told by a solicitor that there wasn't much that could be done. And before any of the idiots condemn the borrower, the money was borrowed to pay the father's hospital bill. which is another thing that disgusts me about this country, the absence of a proper welfare system for Thais. This is truly the asshol_e of the world!

Off topic, but it's worth commenting on your last sentence. Many Thais work in the cash economy & do not pay tax. Putting aside corruption, it's no wonder that Thailand doesn't have a well funded welfare system. There is access to government hospitals, but some Thai's, at least in my family, do not trust the level of care & will borrow money to obtain a better quality of care elsewhere. Elderly members of my Thai family get a pension, it's the grand sum of 600 baht a month from the government. However, they never paid into a pension scheme or paid any tax.

Share this post


Link to post
Share on other sites

simple, I'm not suggesting that it should be free to all, what I deplore is that there is NO system in place. People knock the NHS in Britain, but at least you don't have to borrow money to get treatment.

Share this post


Link to post
Share on other sites

Reminds me of when the Education Minister attempted to solve the problem of bribes being used to secure places at schools by making it a policy.

Share this post


Link to post
Share on other sites

This is the problem isn't it simple? It seems that no government is capable of putting a system of taxation and welfare in place.

Share this post


Link to post
Share on other sites

I thought that the whole point of being a "Loan Shark" is to be unregistered and to charge high interest rates.

It's been happening the world over for thousands of years, it's not going to stop all the time there is a demand for fast easy credit.

Share this post


Link to post
Share on other sites

This'll never fly for two reasons. 1. if the loan sharks had to drop their crazy interest rates they'd call in their loans fast....where would the loanees come up with the funds? 2. chances are Somchai and the rest of the boys in power are making too much money with the current system to want to disturb it ;).

Thailand has become a very materialistic must have a new car, must have a new iphone5, society...I never understood how people making 7000 baht a month can buy so much crap. It's the typical Thai attitude of not looking past today. By the way...what are the ramifications in Thailand for defaulting on (bank) loans? 37.8% seems insane!

Share this post


Link to post
Share on other sites

I thought that the whole point of being a "Loan Shark" is to be unregistered and to charge high interest rates.

It's been happening the world over for thousands of years, it's not going to stop all the time there is a demand for fast easy credit.

Exactly.... That's why it is called ngun nork rabob เงินนอกระบบ "Money outside the system" They can charge huge usurious interest rates with impunity.

Why would they want to be registered?

Share this post


Link to post
Share on other sites

I have relatives who do this, interest is 20% in which the borrowers have a year to pay it off, they put up their chanotes as collateral , and they have not booted anyone off there land (yet). Not the best of all possible worlds but a viable alternative to banks who will not give out fast- long term loans. I would like to see a Grameen style of micro financing in Thailand as a lot of poor farmers need quick money to fix a tractor or buy seed etc. Of course there will always be unsavory loan sharks that cater to people who have gambling debts etc, but as they say “eat your cookies in bed and you’ll sleep with crumbs”.

Share this post


Link to post
Share on other sites

Not sure what they can do to stop this loan shark stuff. I think registering will not work. I know of one family that the loan sharks got the house and car because the wife borrowed money, told no one, and let the interest amount owed become worth more than the value of the property by far. The husband took the kids as they were older than 15, run her off and now she works in Pattaya as she should.

Share this post


Link to post
Share on other sites

Shows how inept this government really is. Legalize mafia activity. The USA never legalized loan sharks. There is a private lending industry which is regulated far beyond anything that Thailand is even capable of doing. PTP just wants their grubby little hands in another honey pot, and they don't care how legal or illegal it is.

Using half truths, lies, ignorance, and fear mongering is what they're good at.

Share this post


Link to post
Share on other sites

The problem with being a lender is that you have to ensure the borrower has: A) The ability to pay, and B ) The motivation to pay. Typically loan sharks care less about the former and more about the latter which is kind of the opposite of proper banks. Loan sharks need to be seen to collect on outstanding debts or their business will turn into a charity.

Because loan sharks take a increased risk compared to banks, they need to charge a higher rate, and no doubt they occasionally need to grease the palms of the local police in the event of collection methods turning nasty.

Whilst the idea of loan sharks may be distasteful to some, they provide a service in circumstances that no "proper" financial institution ever can and therefore are a public service in some respects.

We already have "licenced loan sharks" they are called banks! As soon as they are licensed and have to conform to rules and regulations they cease to be real loan sharks and they can't provide the service that they used to !

Share this post


Link to post
Share on other sites

Rising household debt is not a concern, Somchai said, as it has not yet reached a critical level.

Outstanding consumer loans surged 20.4 per cent year on year to Bt2.75 trillion while defaults on personal loans jumped by 37.8 per cent and on credit cards by 11.1 per cent.

Hey Somchai, When will you become concerned? After defaults have reached a critical level? Great plan!

"Money for nothin and checks for free" Dire Straits.

An easily solvable problem BY NOT BORROWING MONEY FOR THINGS YOU DON'T NEED (new iphone, new car, new house etc).

Share this post


Link to post
Share on other sites

More loan sharks, more corruption, less control in the debt system,... and even murder could be involved whistling.gifwhistling.gifwhistling.gifwhistling.gif

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 members

    No registered users viewing this page.

BANGKOK 22 August 2018 03:16
Sponsors
×