Loan sharks circle in: 65 year old business owner seeks refuge in Chon Buri

A 65 year old business owner in Chon Buri approached the Saaih Mai Tong Rod coordination centre at 10.40am today, seeking assistance after being ruthlessly pursued by loan sharks. The business owner, Chai, borrowed just 30,000 baht but has ended up paying over 3 million baht in interest. His lenders, a total of 29, have forced him to become a fugitive, sleeping in bus stops and temples.

Chai established his company in Chon Buri in September 2020 but soon encountered financial difficulties. Initially, he borrowed from relatives, but when that wasn’t enough, he turned to loan sharks. He borrowed 30,000 baht in August this year but the loan sharks deducted the interest instantly and he only received 24,000 baht while still having to repay the full amount.

Chai further explained that he had to pay interest daily at a rate of 200 baht per thousand, or 600 baht per day. Eventually, he couldn’t keep up with the payments. When he failed to pay, the loan sharks suggested he borrow from another lender, which he believed was part of the same network, to pay off the old debt.

He was caught in an endless cycle of borrowing and interest payments kept increasing. Some lenders even made him buy two motorcycles, costing over 200,000 baht, under his name, both of which have now gone abroad. Some days, Chai had to pay as much as 20,000 baht a day in interest.

In just eight months since August 2023, he has had 37 creditors and was able to pay off eight, leaving him with 29. He has already paid over 3 million baht in interest.

Chai confessed that he has exhausted all sources of borrowing, including friends, relatives, and even his children. He has had to flee his creditors three times after they threatened to kill him and surrounded his company. Local police advised him to relocate as the group of creditors was influential, had numerous associates, and did not fear local law enforcement.

Suicidal thoughts

Chai revealed that he has been living in temples, bus stops, and even hospitals, pretending to be an emergency patient. On December 5, he felt so hopeless that he considered committing suicide by jumping off a bridge. But after someone talked him down, he reached out to the Saaih Mai Tong Rod page for help.

When asked why he didn’t borrow from a formal institution, Chai said that at the time his company was new and he had no collateral to offer. He also didn’t register for government debt remediation out of fear of his creditors, having seen news of creditors vandalising a somtum shop.

Ekaphop Luangprasert, advisor to the Ministry of the Interior and founder of the Saaih Mai Tong Rod page, said that they would use this case as an example for negotiating with all creditors. They would look at how much interest Chai has already paid.

If he has paid three to four times the principal, the debt will be considered settled. If not, they will negotiate on how to repay the remaining debt but the interest rate will be according to the legal limit.

Ekaphop added that in the afternoon, the Saaih Mai team will take Chai to register for government debt remediation in Chon Buri. They will also coordinate with Pol. Col. Kamphol Leelapraphaporn, Chon Buri Provincial Police Commander, to handle this case and take action against the influential loan shark gang in the area, reported KhaoSod.