A 34 year old woman was arrested in Nang Rong district, Buriram province, for allegedly operating an illegal high-interest loan scheme. This followed a complaint from a 44 year old assistant village head, who provided evidence of harassment and exorbitant interest demands.
Yesterday, July 2, district chief Chokchai Sawangrat tasked officials with investigating the case after the assistant village head, referred to as A, approached the Damrongdhama Centre in Nang Rong district. She presented evidence, including bank transfer slips and conversation records, seeking mediation after threats to expose her on Facebook over unpaid interest.
A initially borrowed 3,000 baht (US$43) in November last year, needing the money for groceries as she was selling food to local students. She noticed a Facebook post offering loans and contacted the lender, a woman who allegedly charged 30% interest.
Thus, the 3,000 baht (US$93) loan resulted in an actual amount of 2,100 baht (US$65) being received. A was required to pay 30% interest weekly, amounting to 500 baht (US$15).
Occasionally, delayed payments led to increased interest rates, reaching 700 to 1,200 baht (US$21 to 37) weekly. Over seven months, A had paid 59,010 baht (US$1,825). Despite these payments, she faced continued demands at her home and workplace, with threats claiming the lender had connections with local officials and police.
The lender, referred to as B, allegedly demanded an additional 18,000 baht (US$555), citing compounded interest. Overwhelmed, A sought assistance from the Damrongdhama Centre. Officials confirmed the lender’s interest rates exceeded legal limits, leading to a plan for B’s arrest.
B was detained while confronting A at a local bank. She expressed displeasure with both the complainant and officials. Taken to the Damrongdhama Centre, she admitted to the illegal lending practices, claiming to have only five or six clients in less than a year of operation.
Both parties agreed to a mediated settlement under a government policy for resolving informal debts. B agreed to repay 5,000 baht (US$155) to A and vowed to cease public shaming, debt collection, and threats.
The agreement was recorded, witnessed by a district officer, with the understanding that any future harassment would lead to legal action, reported KhaoSod.
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