Thai police arrest major Kamphaeng Phet loan shark
Thai cyber police arrested a major loan shark in Kamphaeng Phet after debtors reported him for charging exorbitant interest rates and threatening them. Borrowers were subjected to interest rates of 16,000 baht per day, leading to fear and harassment.
The arrest of the loan shark, Pallop, took place yesterday, September 5, when Police Lieutenant General Worawat Watnakornbancha ordered a raid on Pallop’s residence in Kamphaeng Phet. The operation was led by Police Major General Jitthipon Polprueksa, Police Colonel Chinphan Phramphan, Police Colonel Norawat Khamphilo, Police Colonel Supakorn Thanyakam, Police Colonel Anucha Srisamrong, and Police Colonel Supawat Srichaina. The search was conducted with a warrant issued on September 4.
Pallop, a 44 year old man, was arrested on charges of operating an unlicensed personal loan business and charging interest rates higher than legally allowed. The investigation began when a borrower filed a complaint with the Mueang Kamphaeng Phet Police Station earlier this year.
The borrower initially took a loan of 40,000 baht (US$1,190) from Pallop to invest in their business at an interest rate of 2% per day or 60% per month. Due to the economic impact of Covid-19, the borrower struggled to keep up with the interest payments and had to take additional loans to cover the accumulating interest. This cycle of debt led to a total amount owed of 2,190,000 baht (US$5,670), with daily interest payments of 16,000 baht (US$480), reported KhaoSod.
Despite pleading for leniency, the borrower was met with threats and harassment from Pallop. The intimidation extended to the borrower’s family, causing them to fear for their safety and prompting them to seek police help.
The borrower eventually approached the Cyber Crime Investigation Bureau for assistance, leading to the discovery of Pallop’s extensive loan shark operation.
In related news, 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.
