Cyber police arrest loan shark in Nakhon Si Thammarat

Cyber police raided and arrested a loan shark in Nakhon Si Thammarat who charged exorbitant interest rates of 10% per month and accepted vehicles and firearms as collateral. The suspect confessed.

Today, September 1, Worawat Watnakornbancha, the head of the Cyber Crime Investigation Bureau, directed Phumipat Phattharasriwongchai, the commander of Division 5, along with deputy commander Bancha Srisuk and chief of Division 3 Thapakornn Hanumat, to execute a search warrant issued by the Nakhon Si Thammarat Provincial Court under warrant number 365/2024 dated August 29, 2024.

The officers searched a residence in Khanom subdistrict, Khanom district, Nakhon Si Thammarat province, and arrested 60 year old Somporn, known as Jun. The police seized a mobile phone, a CZ handgun, 19 rounds of ammunition, a sidecar motorcycle, bank account books, and loan contracts.

The investigation revealed that Somporn operated an illegal loan business through a Line account named Somporn, charging interest rates as high as 20% per month. For instance, a borrower who took out a loan of 10,000 baht (US$290) had to repay 500 baht (US$15) per day, including both interest and principal. This method of reducing both principal and interest daily continued until the entire debt was paid off.

The interest rates charged by Somporn far exceeded the legal limit of 15% per year. Police discovered advertisements encouraging the general public to take out loans, primarily targeting local villagers. The primary communication method was through Line, where borrowers could add the lender’s contact using a phone number.

Police monitored the LINE account to gather evidence of illegal activities and identify the suspect. Upon obtaining sufficient evidence, they requested a court-approved search of the residence linked to the Line account.

Loan shark

Somporn admitted to residing in Khanom district and providing loans to local borrowers for about four years. He worked as a farmer and ran his loan business on the side. The LINE account was used to chat with borrowers, but he deleted some conversation details due to recent police crackdowns on illegal lenders.

Somporn confessed to keeping loan documents at his residence, revealing that he charged interest rates higher than the legal limit. For example, a loan of 15,000 baht (US$440) carried an interest rate of 10% per month, with daily reductions in both principal and interest until the loan was fully repaid. These loan agreements served as evidence of the transactions between the lender and borrowers.

The police charged Somporn with lending money at interest rates exceeding the legal limit, in violation of Section 4 of the 2017 Interest Rate Control Act. He was also charged with operating a personal loan business without a licence, according to Revolutionary Council Announcement No. 58 dated January 26, 1972, and the Ministry of Finance’s directive on regulated personal loan businesses dated June 9, 2005, reported KhaoSod.

Additionally, Somporn faced charges of illegal possession of a firearm and ammunition without local registrar approval, under Section 7 of the 1947 Firearms and Ammunition Act. He was taken to Kanom Police Station for further legal proceedings.