Over B33mn of title deeds returned to creditors of informal debt

[rooster59]

Over B33mn of title deeds returned to creditors of informal debt 

By The Phuket News

 

Over B33 million worth of title deeds were transferred back to creditors of informal debts at the ceremony on Friday (Mar 29). Photo: Phuket PR
 

PHUKET: Phuket’s Region 8 Police held a ceremony on Friday (Mar 29) in which over B33 million worth of title deeds were transferred back to creditors of informal debts due to failed repayments.

 

Informal debt – debt owed by individuals to creditors who are not members of financial institutions or state agencies – has long been a major financial problem in Thailand. Living in poverty and working in the informal economic sector without adequate social welfare keeps people besieged within the informal debt cycle endlessly with exorbitantly high interest rates of 5–20% per month.

 

Maj Gen Chalit Thinthanee, Region 8 Police Deputy Commander, presided over the ceremony with Phuket Vice Governor Supoj Rotreuang Na Nongkhai and local residents at Chaijinda Auditorium of Region 8 Police in Mai Khao.

Full story: https://www.thephuketnews.com/over-b33mn-of-title-deeds-returned-to-creditors-of-informal-debt-70908.php#iTTUF8kDwTxG4fHf.97

 

-- © Copyright Phuket News 2019-03-31

 

[johnc925]

very nice move!

[Lucifer999]

So basically the police collected the land deeds from the poor for the loan sharks?  

[hotchilli]

Maj Gen Chattawat said, “Government policy requires that the informal debt problem, which is a major problem in the country, is resolved as soon as possible. The Royal Thai Police have been tasked with the responsibility to resolve the issue.”

 

I can understand the police becoming involved when an un-licenced creditor starts proceedings to take land or properties away from an individual in the case of un-paid debts.

But surely the responsibility lays with the banking institutions to solve the problem by making loans to poor people more accessible?
 

[Lucius verus]

Alot of Thais use their title deed as collateral on informal loans.

The sharks move in and there's blood  on the street.

Always leave your deeds/passports in a secure place ie bank deposit box.

Thai spouses steal each others deeds all the time.

 

[Joe Mcseismic]

No one stuck a gun to their head and forced them to make a loan. Understandably, the lender wants collateral as the borrower is high risk. So much for personal responsibility.

If I read the story right, the end result is that the lenders have been bilked out of their money. Is that fair?

Oh, I certainly don't approve of the extortionate interest rates the lenders charge, but, the borrowers had a choice.

[madmitch]

If it's considered a problem, why does the Government support this type of informal loan by allowing deeds to be formally signed over at the Land Office?

[robblok]

38 minutes ago, hotchilli said:

Maj Gen Chattawat said, “Government policy requires that the informal debt problem, which is a major problem in the country, is resolved as soon as possible. The Royal Thai Police have been tasked with the responsibility to resolve the issue.”

 

I can understand the police becoming involved when an un-licenced creditor starts proceedings to take land or properties away from an individual in the case of un-paid debts.

But surely the responsibility lays with the banking institutions to solve the problem by making loans to poor people more accessible?
 

Banks are there to make a profit, the poor almost have no way of paying back a loan. That is why they loose their collateral to loansharks. Yes the high interest is a reason too but even with a lower rate they often don't have a way to repay. 

 

There are already so many loans that are not being paid back in Thailand why would banks touch this sector where the chances for defaults are so high. Would you step in something like this high risk for little profit. 

 

Loan sharks by their nature can pressure people more then banks (not legal of course) and that is how they often get their money.