20 November, 2009
Helping the Poor
Police Target Violent Moneylenders
Nov 20,2009
Under a new government project to settle "offsystem" debts between lowincome earners and loan sharks, police are making arrests of those with potentials to use violence against their clients when they fail to repay.
In Chon Buri, four people were yesterday arrested for giving loans at the extremely high interest rates of 60 per cent a month. They admitted to the crimes and implicated a man identified as Damnern Srithongkham, as the leader of their loan service.
The suspects have been charged with demanding illegally high rate of interests and operating a loan service without permission. They are Chakhrit and Komes Sanohsab, Arthit Pluemphol and Phithak Khuedee.
Meanwhile, some debtors are sceptical about the ambitious project to settle the "off system" debts, saying they doubt if money will ever reach them or if the state would fund such an ambitious project.
An ageing security guard, who identified himself only as Surachai, said he borrowed money from a loan shark because he lacked documents and collateral to qualify to for a bank loan.
He said the move would be a blessing for poor people like him and many of his friends, but he doubted the government's sincerity and ability to raise a huge amount of money to fund such a project.
The project was inaugurated yesterday, before moves to register people around the country from December. The basic qualifications for people to take advantage of the scheme is an income under a certain level, with debt of no more than Bt200,000 and being "determined to repay all debts".
A dessert vendor, who asked not to be named, said she welcomed the philosophy behind the policy. But she wondered what verification methods could be used between illegal money lenders and government mediators to settle debts.
"Who will decide on the actual amounts of debts? And who will verify the amounts if the money lenders just lie [about the actual debt amounts]"
But one money lender, who said he never used violence against creditors who failed to pay debts or made payments late, welcomed the project. He said it would benefit him if his clients could repay him with low interest money subsidised by the government.
Apart from factory workers and small time vendors, he said most of his clients were workers on salaries whose requests for loans were turned down by banks.
Source: The Nation
Nov 20,2009
Under a new government project to settle "offsystem" debts between lowincome earners and loan sharks, police are making arrests of those with potentials to use violence against their clients when they fail to repay.
In Chon Buri, four people were yesterday arrested for giving loans at the extremely high interest rates of 60 per cent a month. They admitted to the crimes and implicated a man identified as Damnern Srithongkham, as the leader of their loan service.
The suspects have been charged with demanding illegally high rate of interests and operating a loan service without permission. They are Chakhrit and Komes Sanohsab, Arthit Pluemphol and Phithak Khuedee.
Meanwhile, some debtors are sceptical about the ambitious project to settle the "off system" debts, saying they doubt if money will ever reach them or if the state would fund such an ambitious project.
An ageing security guard, who identified himself only as Surachai, said he borrowed money from a loan shark because he lacked documents and collateral to qualify to for a bank loan.
He said the move would be a blessing for poor people like him and many of his friends, but he doubted the government's sincerity and ability to raise a huge amount of money to fund such a project.
The project was inaugurated yesterday, before moves to register people around the country from December. The basic qualifications for people to take advantage of the scheme is an income under a certain level, with debt of no more than Bt200,000 and being "determined to repay all debts".
A dessert vendor, who asked not to be named, said she welcomed the philosophy behind the policy. But she wondered what verification methods could be used between illegal money lenders and government mediators to settle debts.
"Who will decide on the actual amounts of debts? And who will verify the amounts if the money lenders just lie [about the actual debt amounts]"
But one money lender, who said he never used violence against creditors who failed to pay debts or made payments late, welcomed the project. He said it would benefit him if his clients could repay him with low interest money subsidised by the government.
Apart from factory workers and small time vendors, he said most of his clients were workers on salaries whose requests for loans were turned down by banks.
Source: The Nation
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