Brothers arrested in Trang for illegal loan sharking with 30% interest

Police arrested two brothers, nicknamed Jao Tossakan Loan Sharks, in Trang for charging exorbitant interest rates of 30% per month, with a loan turnover exceeding 2 million baht. The investigation revealed over 100 victims.

Yesterday, September 5, police, led by Phumipat Phattarasriwongchai and Theera Chuersuwan, directed Kritthaphop Kaewrod and his team, in collaboration with local officers, to execute a search warrant at a house in Moo 12, Khao Wiset, Wang Wiset, Trang.

The operation resulted in the arrest of 45 year old Polchet and 38 year old Suphat. Both men are residents of Khao Wiset, Wang Wiseand t, Trang. They were apprehended with 10 items of evidence, including mobile phones, customer loan record books, legally binding loan agreement documents, copies of borrowers’ identification, chat records of loan transactions, and a .38 calibre Luger revolver with six rounds of ammunition.

Police discovered the brothers were operating an illegal money-lending business through social media platforms like Facebook and Line. Investigations revealed their Facebook page was used to offer loans with interest rates exceeding legal limits. Once their identities and residence were confirmed, the officers gathered further evidence to obtain a search warrant from the Trang court.

Upon arrival at the house, officers observed Polchet through his bedroom window, actively engaging in loan activities on Facebook and recording customer details in a notebook. Polchet admitted his actions when questioned, leading to the seizure of the evidence.

While officers were at the scene, Suphat emerged from another bedroom. He confessed that both he and his brother were involved in the illegal money-lending operation, charging interest rates beyond the legal limit since the beginning of the year.

The brothers explained that they collected interest every 10 days from their customers. For instance, a loan of 1,000 baht (US$30) would require interest payments every ten days until the principal was repaid, equating to a 30% monthly interest rate. Their operation had a monthly turnover of around 2 million baht (US$59,700) with over 100 victims, reported KhaoSod.

The brothers face charges for lending money at interest rates exceeding legal limits, operating an unlicensed personal loan business, and illegal possession of firearms. The suspects and the confiscated items were taken to Khao Wiset police station for further investigation and legal proceedings.