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Loanshark problem?


Mountain Man

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Loans Sharks on lend money on an asset and then a percentage of what's its worth. Usually its land question have you paid for a assets as the loan sharks will be hold the Title document. They also will a book which will clearly show any payments your wife has made. Good luck but don't hold your breath.

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19 minutes ago, aussiandrew said:

Loans Sharks on lend money on an asset and then a percentage of what's its worth. Usually its land question have you paid for a assets as the loan sharks will be hold the Title document. They also will a book which will clearly show any payments your wife has made. Good luck but don't hold your breath.

If you have enough assets to secure a loan then you can go to a bank. People going to loan sharks often even don't have anything for a pawnshop. Otherwise they could go there. 

 

Edited by Oldie
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23 hours ago, Bigz said:

Last year there was a big police crack down on loan sharks. In Buriram alone hundreds lenders were forced to return land/cars, other assets or to rewrite contracts with a legal interest rate. Could have been a one off thing though..

Police getting rid of the competition, allegedly...

 

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Have absolutely zero experience with this issue and I'm not trying to be a smartar$$, but, it strikes me as very odd that a year after the debt was settled, these bozos turn up again. Has a new loan been taken out in the meantime unbeknownst to you? Again, no offence, but this is fishy. 

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4 hours ago, Yellowtail said:

 

 

I wonder what your girlfriend would have had to do for the money had the woman not loaned it to her. 

 

 

10 short times in Pattaya.... assuming she don't look like Magilla the Gorilla.

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3 hours ago, Oldie said:

If you have enough assets to secure a loan then you can go to a bank. People going to loan sharks often even don't have anything for a pawnshop. Otherwise they could go there. 

 

Not necessarily. A person may incur gambling debts and hold a land title deed. No bank is going to loan money to cover gambling debts.

Loan sharks never ask what the loan is for......unlike banks. 

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3 hours ago, SiSePuede419 said:

Yes, never borrow money from a loanshark in the first place. ✔️

 

Any other questions? ????

Very neat and very trite.

How about if it's the only way to pay a medical bill for a parent, or a child? Very common occurrence.

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I'm presuming that any Issan girl would get laughed out of any bank if she approached them for a loan ( tbh i don't think they would even entertain that as a feasible way of obtaining money) So unfortunately they are often enter contracts with high interest or fail to understand the impact of 20% Interest or compounded interest etc.

 

The worst thing you can do as a falang is bolster up to the loan shark and pay with a wad of cash with some sort of bravado that they wont get one over me attitude. That would basically translate to another loan being arranged now she has the backing of a falang.

 

There's also cases where there was no actual loan at all and once you've been identified as a bit of a soft touch....you pay the 10k or whatever ammount it is and then half gets dished back to you missus or back through the family.

 

 

 

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  • 1 month later...

Unfortunately I've run into the same issue...

GF started a grilled squid business when Covid hit so she had to buy a lot of stuff to get going (conversion of her motorbike, grill, supplies, buying daily fresh squid etc.). She was actually doing quite well in the sense that had she not had to pay the interest on the loan she got from a loan shark, she would be able to make a decent income. With the interest rate being too high however, it was not sustainable in the longer run so she reluctantly came to me.

I checked out everything was on the up and up and I was not being scammed, dialled in via videochat when she forked over some money to one loan shark who was cash only and got sent the entire track record or repayments to another loan shark who worked with bank transfers.

 

I told her I would be bailing her out on the condition that she would never again go to another loan shark as the interest rates are just crazy, so guess what...

 

The business started to hit a bit of a slump in the more recent months as the Covid crisis continues to drag out. She wasn't making the same kind of money she was at the start so she thought it a good idea to go all in and rent a spot at a loy kratong festival which lasted 4 days at 5000THB per day just to get a spot. She was sure I would say no to the idea, so she thought the best course of action was, of course, to go back to a loan shark...

It never ceases to amaze me that new business owners (pretty much all over the world, this isn't a Thailand exclusive) think that they can turn an unsuccessful business into a successful one by throwing more money at it...

 

Bottom line, she loaned 40k THB, 20 for the spot and 20 for supplies, transportation and such and needs to pay back 500THB per day...

She of course didn't make the money back that she put into the festival and didn't even break even, so she was only able to repay 15k THB of the loan, leaving her with 25k to repay. Unsurprisingly the loan shark still wants 500THB per day even though the principle amount of the outstanding loan has already been significantly reduced.

She has now stopped paying for about a week and is at her wits end and came knocking once more, knowing the barrage she would face from me.

 

I am torn as I struggle with the fact that she broke the condition on which I repaid the first loan and I am a man of principle, but on the other hand we're talking about a loved one and I hate to see 500THB per day that serves absolutely no purpose go to a person who will gladly take advantage of the fact that she can't repay the principle amount in perpetuity.

If every thing checks out (and trust me, I will make absolutely sure that she isn't playing me this time after she was able to get me to pay of a legitimate loan last time), the argument I'm making to convince myself to fork over the money again is the fact that at least she was trying to do something constructive with it and taking a chance on life. It's not like she was wasting it on fake Gucci bags and stupid jewelry.

The difference is that I would always put thought into the scenario where I'm not able to make my business venture a succes, whereas (and I assume this is typical Thai?) she only thought of the dream scenario where she would make a killing during the festival and wouldn't have had to tell me about it until after she had been successful.

 

So anyway, that's my story fwiw. Not sure how to proceed next. I'm not in the country so I can't go an negotiate with the loan shark directly.

He has a copy of her ID and Tabien Baan so I'm assuming pulling a runner is out of the question??

I'm worried he or some of his goons chase her down to her home town where they will be very unforgiving of the fact that she skipped town.

 

And I actually don't like the thought of the loan shark being out of pocket either. As mentioned in this thread previously, she did enter into a contract and the loan shark should not be worse off for it. But I also don't agree with the concept of extortionate interest rates and my GF has already said that he could not be moved on the amounts so at that point I kinda think f u buddy.

 

Would be happy to hear from you guys on how best to proceed.

 

 

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1 hour ago, Silvermane said:

Unfortunately I've run into the same issue...

GF started a grilled squid business when Covid hit so she had to buy a lot of stuff to get going (conversion of her motorbike, grill, supplies, buying daily fresh squid etc.). She was actually doing quite well in the sense that had she not had to pay the interest on the loan she got from a loan shark, she would be able to make a decent income. With the interest rate being too high however, it was not sustainable in the longer run so she reluctantly came to me.

I checked out everything was on the up and up and I was not being scammed, dialled in via videochat when she forked over some money to one loan shark who was cash only and got sent the entire track record or repayments to another loan shark who worked with bank transfers.

 

I told her I would be bailing her out on the condition that she would never again go to another loan shark as the interest rates are just crazy, so guess what...

 

The business started to hit a bit of a slump in the more recent months as the Covid crisis continues to drag out. She wasn't making the same kind of money she was at the start so she thought it a good idea to go all in and rent a spot at a loy kratong festival which lasted 4 days at 5000THB per day just to get a spot. She was sure I would say no to the idea, so she thought the best course of action was, of course, to go back to a loan shark...

It never ceases to amaze me that new business owners (pretty much all over the world, this isn't a Thailand exclusive) think that they can turn an unsuccessful business into a successful one by throwing more money at it...

 

Bottom line, she loaned 40k THB, 20 for the spot and 20 for supplies, transportation and such and needs to pay back 500THB per day...

She of course didn't make the money back that she put into the festival and didn't even break even, so she was only able to repay 15k THB of the loan, leaving her with 25k to repay. Unsurprisingly the loan shark still wants 500THB per day even though the principle amount of the outstanding loan has already been significantly reduced.

She has now stopped paying for about a week and is at her wits end and came knocking once more, knowing the barrage she would face from me.

 

I am torn as I struggle with the fact that she broke the condition on which I repaid the first loan and I am a man of principle, but on the other hand we're talking about a loved one and I hate to see 500THB per day that serves absolutely no purpose go to a person who will gladly take advantage of the fact that she can't repay the principle amount in perpetuity.

If every thing checks out (and trust me, I will make absolutely sure that she isn't playing me this time after she was able to get me to pay of a legitimate loan last time), the argument I'm making to convince myself to fork over the money again is the fact that at least she was trying to do something constructive with it and taking a chance on life. It's not like she was wasting it on fake Gucci bags and stupid jewelry.

The difference is that I would always put thought into the scenario where I'm not able to make my business venture a succes, whereas (and I assume this is typical Thai?) she only thought of the dream scenario where she would make a killing during the festival and wouldn't have had to tell me about it until after she had been successful.

 

So anyway, that's my story fwiw. Not sure how to proceed next. I'm not in the country so I can't go an negotiate with the loan shark directly.

He has a copy of her ID and Tabien Baan so I'm assuming pulling a runner is out of the question??

I'm worried he or some of his goons chase her down to her home town where they will be very unforgiving of the fact that she skipped town.

 

And I actually don't like the thought of the loan shark being out of pocket either. As mentioned in this thread previously, she did enter into a contract and the loan shark should not be worse off for it. But I also don't agree with the concept of extortionate interest rates and my GF has already said that he could not be moved on the amounts so at that point I kinda think f u buddy.

 

Would be happy to hear from you guys on how best to proceed.

 

 

 

You can be a hero for under a thousand bucks, why not? You get to say I told you so and and you tell her nest time to come to you. 

 

You might try to be a little more supportive, at least she's trying to do something with her life.

 

Keep in mind, if she were a successful business woman she would likely have a better option than you...

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1 hour ago, Yellowtail said:

 

You can be a hero for under a thousand bucks, why not? You get to say I told you so and and you tell her nest time to come to you. 

 

But I've already been the hero the first time around and already and quite clearly said that in future she should always come to me to talk first. If we're supposed to be a family, then I would say families talk things through before doing stuff. If she wants to go out and make decisions by herself that's fine too, but then she carries the full risk and consequences of her actions.

 

1 hour ago, Yellowtail said:

 

You might try to be a little more supportive, at least she's trying to do something with her life.

 

That's what I already wrote myself and it's the only reason why I would consider bailing her out again. If it's true of course.

But obviously bailing her out again after having clearly spelled out the conditions of me bailing her out the first time means that bailing her out now will set the precedent that no matter what happens I will always save her bacon. I will in effect be rendering anything I say or any conditions I put on understandings with her as worthless as she will understand that she can always get her way regardless of what I've said in the past.

 

1 hour ago, Yellowtail said:

Keep in mind, if she were a successful business woman she would likely have a better option than you...

 

Oh so we're automatically assuming that I'm a fat old farang are we? ????????

I would argue that even if she were a successful business woman, she would still be lucky to have me ????????

 

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1 hour ago, Silvermane said:

 

But I've already been the hero the first time around and already and quite clearly said that in future she should always come to me to talk first. If we're supposed to be a family, then I would say families talk things through before doing stuff. If she wants to go out and make decisions by herself that's fine too, but then she carries the full risk and consequences of her actions.

 

 

That's what I already wrote myself and it's the only reason why I would consider bailing her out again. If it's true of course.

But obviously bailing her out again after having clearly spelled out the conditions of me bailing her out the first time means that bailing her out now will set the precedent that no matter what happens I will always save her bacon. I will in effect be rendering anything I say or any conditions I put on understandings with her as worthless as she will understand that she can always get her way regardless of what I've said in the past.

 

 

Oh so we're automatically assuming that I'm a fat old farang are we? ????????

I would argue that even if she were a successful business woman, she would still be lucky to have me ????????

 

 

So don't give her the money, that'll show her. 

 

Making her beg will not benefit either of you. It will just build up a lot of animosity. You pretty much have to either give her the money or cut her loose. You don't really have much of a choice. 

 

You're not really family, as she is just your girlfriend. Were she your wife you might have a stronger position.

 

I'm not assuming anything.

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Probably a second loan regarding which the details have been conveniently left out.

6 hours ago, Silvermane said:

Unfortunately I've run into the same issue...

GF started a grilled squid business when Covid hit so she had to buy a lot of stuff to get going (conversion of her motorbike, grill, supplies, buying daily fresh squid etc.). She was actually doing quite well in the sense that had she not had to pay the interest on the loan she got from a loan shark, she would be able to make a decent income. With the interest rate being too high however, it was not sustainable in the longer run so she reluctantly came to me.

I checked out everything was on the up and up and I was not being scammed, dialled in via videochat when she forked over some money to one loan shark who was cash only and got sent the entire track record or repayments to another loan shark who worked with bank transfers.

 

I told her I would be bailing her out on the condition that she would never again go to another loan shark as the interest rates are just crazy, so guess what...

 

The business started to hit a bit of a slump in the more recent months as the Covid crisis continues to drag out. She wasn't making the same kind of money she was at the start so she thought it a good idea to go all in and rent a spot at a loy kratong festival which lasted 4 days at 5000THB per day just to get a spot. She was sure I would say no to the idea, so she thought the best course of action was, of course, to go back to a loan shark...

It never ceases to amaze me that new business owners (pretty much all over the world, this isn't a Thailand exclusive) think that they can turn an unsuccessful business into a successful one by throwing more money at it...

 

Bottom line, she loaned 40k THB, 20 for the spot and 20 for supplies, transportation and such and needs to pay back 500THB per day...

She of course didn't make the money back that she put into the festival and didn't even break even, so she was only able to repay 15k THB of the loan, leaving her with 25k to repay. Unsurprisingly the loan shark still wants 500THB per day even though the principle amount of the outstanding loan has already been significantly reduced.

She has now stopped paying for about a week and is at her wits end and came knocking once more, knowing the barrage she would face from me.

 

I am torn as I struggle with the fact that she broke the condition on which I repaid the first loan and I am a man of principle, but on the other hand we're talking about a loved one and I hate to see 500THB per day that serves absolutely no purpose go to a person who will gladly take advantage of the fact that she can't repay the principle amount in perpetuity.

If every thing checks out (and trust me, I will make absolutely sure that she isn't playing me this time after she was able to get me to pay of a legitimate loan last time), the argument I'm making to convince myself to fork over the money again is the fact that at least she was trying to do something constructive with it and taking a chance on life. It's not like she was wasting it on fake Gucci bags and stupid jewelry.

The difference is that I would always put thought into the scenario where I'm not able to make my business venture a succes, whereas (and I assume this is typical Thai?) she only thought of the dream scenario where she would make a killing during the festival and wouldn't have had to tell me about it until after she had been successful.

 

So anyway, that's my story fwiw. Not sure how to proceed next. I'm not in the country so I can't go an negotiate with the loan shark directly.

He has a copy of her ID and Tabien Baan so I'm assuming pulling a runner is out of the question??

I'm worried he or some of his goons chase her down to her home town where they will be very unforgiving of the fact that she skipped town.

 

And I actually don't like the thought of the loan shark being out of pocket either. As mentioned in this thread previously, she did enter into a contract and the loan shark should not be worse off for it. But I also don't agree with the concept of extortionate interest rates and my GF has already said that he could not be moved on the amounts so at that point I kinda think f u buddy.

 

Would be happy to hear from you guys on how best to proceed.

 

 

 

You said GF, not wife - there's still a glimmer of hope!

She doesn't sound trustworthy at all. so give her a backhander, and find a new one.

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On 10/5/2020 at 8:47 AM, Tagged said:

Never heard anyone had physical trouble so far, just empty threats. 

You will not hear about the physical injuries. They are not at all empty threats, they are very very real, there are a few in our village who might just possibly tell you, but probably not as they don’t want to get another visit.

 

But don’t believe me, just take a loan and don’t pay it back,

 

do let us know how you enjoy your time in hospital or the afterlife if you skip a significant amount 

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On 10/6/2020 at 2:09 PM, polpott said:

This is the agreement my wife had. 10K baht loan = 1k baht/ month interest. They are happy to receive the interest only every month. A nice little earner for the loan shark. Over time they can recoup many times the value of the original loan.

 

Thieves praying on the desperate.

 

 

In the West they're registered lenders, completely legal and they call them Payday loans.  Interest rates around 20% per month.

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18 minutes ago, Techno Viking said:

 

where in the west ?

Australia for sure as I just wrote some sales copy for an Australian payday loans company and the UK also, the last time I checked (I'm aware that Australia isn't geographically in the West but culturally I believe it's generally considered to be).

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4 minutes ago, Mark1066 said:

Australia for sure as I just wrote some sales copy for an Australian payday loans company and the UK also, the last time I checked (I'm aware that Australia isn't geographically in the West but culturally I believe it's generally considered to be).

 

Ahh yeah Australia, I though they had capped interest rate @ 4% monthly with a 20% set-up cost for the loan.

 

Which company charges 20% interest monthly ?

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On 10/6/2020 at 2:44 PM, polpott said:

What part of "theives preying on the desperate" don't you understand?


Its just business - your wife paid some of the interest, you paid the original balance - the woman, the loanshark,, not your stereotypical thug, made a wise business decision, take the cash while it’s there. Some profit was made.


Locals can have debts for years, paying off drips - I would say, a lot just fly or lose land - smart move on both sides i would say.

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23 minutes ago, Techno Viking said:

Which company charges 20% interest monthly ?

Payday loans in the UK have now been capped at 0.8% per day--292% a year, or  24% (30-day) month.

 

An interest rate cap of 0.8% per day - Lowering the cost for most borrowers. For all high-cost short-term credit loans, interest and fees must not exceed 0.8% per day of the amount borrowed.----https://en.wikipedia.org/wiki/Payday_loans_in_the_United_Kingdom

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1 hour ago, Techno Viking said:

 

Ahh yeah Australia, I though they had capped interest rate @ 4% monthly with a 20% set-up cost for the loan.

 

Which company charges 20% interest monthly ?

I'm not going to post their name as I just completed some work for them. As their loans were payable over 4 weeks, the cost I worked out could have included the 'set-up' fee that you mention, but I don't think it did. - I can't check as their site is down. But whatever you want to call it, their customers end up paying back the original loan amount, plus more than 20% in fees/interest.

 

My point was that the people some posters are calling thieves who take advantage of the desperate in Thailand would be viewed as legitimate lenders in the West. I mean, would we look on loan sharks any more generously if they made 4 week loans and called the 20% interest a set up fee?

Edited by Mark1066
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Not sure what the rate is, but they have PayDay loans in the US, and they have pawn shops most everywhere.

 

So would the people that claim loan sharks are "preying on the desperate" prefer that the desperate have no place to turn? 

 

High risk loans charge high interest rates, shocking.

 

PayDay.JPG.6095fdd1bde9866df86fd4da637d6fbe.JPG

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