Author Topic: Loan shark ransacks debtor's home  (Read 518 times)

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Offline dodgeydave

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Loan shark ransacks debtor's home
« on: October 17, 2012, 03:22:09 AM »
This don't add up if you ask me



CHON BURI – A man complained to police on Tuesday that his house in Satthip district was ransacked by thugs working for a loan shark.

Manop Bangphet, 46, told police that a group of men broke into his house, destroyed his belongings and took over 200,000 baht worth of possessions after he missed two daily interest payments on the money he borrowed.

He said he took out a loan of 20,000 baht from a loan shark three months ago, out of necessity. He said he called a phone number on a card that was glued to a public phone booth.

Under the loan agreement, he had to pay interest of 400 baht per day. The interest payments would continue, without reduction of the principal, until he paid back the actual loan in one lump sum.

He said he had already paid more than 30,000 baht in over two months, but he did not have the money to repay the principal and therefore he had to continue his interest payments.

He had failed pay the interest for two days,  and a group of men came looking for him at his house.
When they found he was out of town, they ransacked his house.

His neighbour witnessed the incident and told police that two men came looking for the victim. They could not find him, so they broke into his home.

Mr Manop said he had moved his family out and sent them to live with his relatives because he feared that the loan shark gang would hurt them.

Police said they would call the loan shark in for questioning, and then charge him and his gang with trespassing and burglary.

http://www.bangkokpost.com/breakingnews/317294/debtor-house-ransacked
 

Offline Johnnie F.

Re: Loan shark ransacks debtor's home
« Reply #1 on: October 17, 2012, 08:40:26 AM »
For a loan of 20,000 THB he wouldn't have paid more than 400 THB per month, payable at the end of the 4-month period granted. But of course he would have needed something to pawn, like gold or an item easily to auction and not so difficult to store at the pawn shop.
Fun is the one thing that money can't buy
 

Offline Baby Farts

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Re: Loan shark ransacks debtor's home
« Reply #2 on: October 17, 2012, 05:44:22 PM »
"The interest payments would continue, without reduction of the principal, until he paid back the actual loan in one lump sum."

This is exactly what the gold shops do and how they make a ton of money.  This type of loan is only beneficial if the borrower pays the loan back in full within a month or two.  So many locals are just too dumb to figure this out and just go along with the payments without any reduction to the principal. Gold shop owners just love it when customers come in to pawn their gold for cash.
 

 



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