Phuket loan sharks busted for 50% interest rate scam
Two men running an illegal loan shark operation in Phuket have been arrested after allegedly extorting desperate borrowers with sky-high interest rates. Their arrests come as part of a nationwide crackdown on unlawful debt practices and predatory lending.
Phuket Immigration officers, working alongside the Immigration Bureau’s Crime Suppression Division 8 and Immigration Bureau 6, swooped in last Thursday, February 27, to apprehend the suspects.
The operation was launched under orders from national police chief, Police General Kittirat Phanphet, and Immigration Bureau Commander, Police Lieutenant General Phanumas Boonlert, who have vowed to target illegal lenders, aggressive debt collectors, and unauthorised vehicle pawn schemes.
According to reports, the suspects, identified only as 26 year old Narucha and 24 year old Kriangsak, were offering loans to Phuket vendors and residents at an extortionate interest rate of 2% per day. Over 24 days, this amounted to a staggering 50%, trapping borrowers in a cycle of debt.
Investigators estimate that the duo’s illicit lending racket was raking in several hundred thousand baht each month. Both men now face multiple charges, including illegal money lending, violating personal loan business regulations, and imposing interest rates far above the legal limit.
Following their arrests, they were taken to Phuket City Police Station for further legal proceedings. However, the report did not clarify why Immigration officers led the arrests instead of local police, raising questions about the operation’s jurisdiction.
Police continue to crack down on predatory lenders, warning residents to be wary of loan sharks who exploit financial hardship with ruthless repayment terms, reported The Phuket News.
In similar news, a 33 year old man was arrested in Chiang Mai for running an illegal loan operation involving exorbitant interest rates and aggressive debt collection tactics. The crackdown followed reports of intimidation in the Chai Sathan subdistrict, Saraphi district.
On February 21, the gang allegedly threatened debtors at their homes, sparking fear among locals. One victim claimed their noodle shop was vandalised after missing a call, despite having no outstanding payments.
On February 22, senior police officials led the operation to arrest Oat. He now faces charges for illegally operating a loan business and imposing excessive interest rates.
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