Thai government launches aggressive campaign against illegal lending

The Thai government has prioritised an aggressive campaign against illegal lending and loan sharks, in an attempt to curb what Prime Minister Srettha Thavisin refers to as modern-day slavery.

The move emphasises the urgency to dismantle such activities to restore social stability and security.

The 61 year old Thai PM stated the issue of illegal loans has escalated to a national priority.

“This policy is not constructed for the sake of enhancing the government’s or my own reputation, but fundamentally about alleviating the hardships of our citizens and reinstating their sense of security and happiness. It is essential that our people can live without fear.”

The announcement of this policy intervention came yesterday, December 8. The government has established platforms for those affected by this debt to submit petitions. These platforms include the Damrongtham Centre hotline, 1567, or local district offices, open until February 29. As of yesterday, the scheme has seen 75,199 enrolments, with debt settlements amounting to a minimum of 3.82 billion baht.

On top of this, the Royal Thai Police (RTP) has also established a suppression centre to deal with this issue, creating a 1599 hotline to collect complaints about loan sharks. This is in addition to the Office of the Prime Minister’s 1111 hotline.

These complaints will be gathered and forwarded to relevant agencies. Law enforcement and prosecutors have the authority to arrest the accused immediately upon receiving a complaint.

The government is also offering mediation services between debtors and lenders, providing a platform for reconciliation. Following the conclusion of these negotiations, a settlement agreement is expected to be drafted between the two parties, reported Bangkok Post.

Protocol for money lending

The 61 year old Thai prime minister said such an agreement must follow the protocol set by the Interior Ministry.

“It should include the most suitable debt clearance method for each debtor, covering aspects such as interest rate, instalment amounts, and the payment period.”

Post this, the results will be monitored by the Office of the Prime Minister. Additional negotiations will be organised if initial attempts are unsuccessful. In the case of predatory lending being reported subsequently, a lawsuit will be necessitated.

Interior Minister Anutin Charnvirakul issued a warning to lenders against preventing their debtors from registering for this scheme.

Addressing reports of vandalism linked to the scheme, Anutin remarked that such actions would only compound the legal consequences for those involved in illegal lending practices, instead of serving to improve the situation.