Loan shark in Hat Yai nabbed for imposing 120% interest rates

Police in Hat Yai arrested a 62-year-old loan shark for allegedly offering covert loans with exorbitant interest rates of 120% per year, using land title deeds as collateral, and threatening borrowers.

The operation was conducted on March 7 under the direction of Major General Warawut Watnakornbancha, Chief of the Special Branch Office 5, along with Lieutenant Colonel Phumiphat Phatarasriwongchai, Chief of the Special Branch Office 5, and Police Colonel Kukiat Wongpan, Commander of the 2nd Subdivision, Special Branch Office 5.

The search warrant, issued by the Songkhla Provincial Court on March 7, led to the arrest of Ten, also known as Tee, and the seizure of various items used as collateral for loans, including vehicle registration booklets, substitute land title deeds, and copies of land title deeds, as well as unregistered loan agreements.

The investigation by the 2nd Subdivision, Special Branch Office 5, began after complaints from locals in Hat Yai, Songkhla, about an unregulated lender seizing land title deeds and demanding additional interest, making it difficult for them to live normal lives.

The police discovered that Ten was a professional loan shark who had been illicitly offering loans for several years, using intermediaries to approach traders and locals in the area and advertising unrestricted loans with interest rates exceeding the legal limit of 5 to 10% per month.

The disguised contracts were presented as purchases of items such as mobile phones, with interest rates ranging from 60 to 120% per year. If the land title deed was not under a pawn agreement, legal action was taken to compel mortgage enforcement.

The evidence gathered led to a search of Ten’s home, resulting in his arrest and the intention to press charges for conducting personal loan business without a permit and concealing the true nature of the loan agreements, reported KhaoSod.

Only two weeks ago, a sad tale emerged about a family in Nonthaburi province that found refuge at a bus stop after fleeing their home due to threats from a loan shark who demanded daily interest payments.