Cyber police arrest online loan shark charging 3% daily interest

Cyber police raided and arrested an online loan shark charging exorbitant interest rates of 3% per day, threatening, shaming, and destroying the property of those who failed to pay. They seized numerous items of evidence.

The operation took place yesterday under the command of Cyber Police Chief, Worawat Watnakornbancha who instructed relevant authorities to execute a search warrant issued by the Trang Provincial Court on June 12.

The raid targeted a residence in Trang Province, resulting in the arrest of 22 year old Nichanan. Police confiscated a mobile phone, 35 loan agreements, six notebooks listing daily interest loan customers, and nine posters advertising quick loans.

The suspect is accused of lending money at interest rates exceeding the legal limit and operating an unauthorised personal loan business.

The investigation began when officers from Cyber Police Division 5 discovered a Facebook account offering illegal loans with daily interest rates of 3%. The loans went up to 100,000 baht. Those who failed to repay were threatened with violence, public shaming on Facebook, or property destruction.

Investigators gathered evidence and identified the Facebook account owner and their residence, leading to the search and arrest.

Nichanan was then taken into custody and handed over to Sikao Police Station investigators in Trang for legal proceedings. Police aim to crack down on illegal loan activities that exploit vulnerable individuals with excessive interest rates and violent debt collection methods, reported KhaoSod.

The ongoing efforts are part of a broader initiative to ensure financial businesses operate within legal frameworks and protect citizens from predatory lenders. The case highlights the growing issue of online loan sharks exploiting social media to reach potential victims.

In related news, a mother who borrowed 10,000 baht to pay her child’s school fees 12 years ago is now struggling under a crippling debt of 2.6 million baht in interest. The mother, who initially took out the loan when her child was in primary school, is now seeking help from a popular Facebook page, Survive – Sai Mai Must Survive, to resolve the situation.