Thailand may shine with golden temples and shiny cars, but behind it all lies a financial tragedy. Easy borrowing, low wages and an addictive consumer culture have pushed households up to their necks in debt. With a mix of social pressure and economic inequality, people are digging their own financial graves while banks look on and smile. This is the tragicomic debt show of a country that never learns.
'Trapped in a world of debt and threats'
Jintana, a young mother, finds herself trapped in the clutches of a ruthless loan shark. With debt hanging like a noose around her neck and no way out in sight, she decides to travel to Bangkok, where she sells her body in a desperate attempt to give her daughter a chance at a better life.
Peter from Nongkhai is appealing to fellow Dutch people for financial support. He urgently needs 20.000 baht to pay a down payment to a loan shark. On November 22, he can repay this amount, including 2.000 baht interest. His appeal is intended for those who can help him temporarily in this difficult situation.
The Ministry of Interior has made impressive progress in resolving informal debt. With mediation by provinces and districts, the debt of 138.335 debtors has been reduced by 1,14 billion baht. As discussions between creditors and debtors continue, government agencies are working hard to provide everyone involved with a fair, timely resolution and help them improve their quality of life.
A Thai woman has borrowed 1.000.000 Baht from a loanshark / money loan shark. She will lose the land in a year, because the land papers have been issued. And no more income or she has to pay back 1.500.000 Baht.
I borrow, she borrows, we borrow and they have borrowed
What do you do when you are a Thai, have no savings, but still have to pay something? To wait? Still saving? Spend less? To the bank for a revolving credit? No, you borrow money from family, friends and acquaintances.
Various loanshark and drug gangs arrested in Thailand
In the last few weeks, the Thai police have managed to bust several loanshark and drug gangs. It started with the arrest of two Chinese nationals, Lang Zhu, 29, and Song Song Zhu, 28, who were arrested June 22 outside the Riviera Hotel on Wong Amat Beach in Naklua.
Loansharks still active in Thailand
Despite the Thai government's promise to tackle loansharks, this phenomenon still appears to be common in practice.
Reader question: Can my Thai girlfriend get rid of her loan with usurious interest?
My Thai girlfriend took out a loan 7 years ago with a private individual in Pattaya, she pays 9.000 baht interest per month for a borrowed amount of 30.0000 baht. Can something be done about this through a court? Can someone recommend me a reliable lawyer in the Pattaya area who might be able to assist us?
Prayut tackles loansharks but also offers a way out
Prime Minister Prayut wants to crack down on loan sharks (money lenders), but if they adhere to the rules of pico financing and formally close themselves off, they will not be prosecuted. The old loans may remain outstanding, but the interest must be adjusted.
Reader question: What can I do against a loan shark
My Thai ex-girlfriend took my land title deeds to a loan-shark to borrow money. She has borrowed 4 million Baht at an extortionate rate of 4% per month! My ex girlfriend thought she could pay the interest of 160.00 Baht per month on time, but she obviously didn't succeed! The loan-shark Lim then has the right to sell my land and house. I am in this situation now.
Yesterday morning, fifty men from the DSI, police, army and officials raided three homes belonging to Wichai Panngam, the leader of a network of moneylenders known as the Helmet Gang.
In the hunt for loan sharks, raids have recently been made in 26 places across the country. The police say they have broken up the largest network known as the Helmet Gang. It has existed since 2011 and has 86 departments with 2.000 employees.
Thailand wants to step up the fight against illegal lenders. These so-called loan sharks sometimes demand extortionate interest rates of up to 20 percent per day.
Yongyut the 'loan shark' in Pattaya
Yongyut has the reputation of being the most hated man in Pattaya. He lends money at monthly interest and if the payment term is not met as agreed, there will be a fine and if that does not help, he does not hesitate to take "physical" measures.
Thailand's loan sharks
Deep in debt and near desperation, poor Thais turn to loan sharks as their last hope. These unofficial lenders, who charge exorbitant interest rates and use threats and violence for repayment, pose a growing threat to Thailand's well-being.
Submitted: Motorbike mafia in Buriram
My name is Wim Voorham and since 2007 I live about 5 months a year in Ban Kruat in the province of Buriram. In recent years I have been painfully confronted with the phenomenon of the 'motorbike mafia'.