Police monitoring 3,000 loan sharks
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Debtor's fiery action spurs moves to prevent more tragedies
Police are now monitoring the activities of more than 3,000 non-institutional moneylenders across the country to try to prevent any further tragic incidents, after a heavily indebted farmer set herself ablaze.
“If the moneylenders use harsh measures in debt collection and violate laws, we will take immediate action,” Deputy National Police Commissioner General Worapong Chewprecha said yesterday.
He was speaking after Sangvien Raksapetch set herself on fire over her debt woes on Wednesday. The woman had been hounded by a loan shark and lost hope of getting help from government officials.
At press time, Sangvien remained in hospital, and her condition has been worsening as complications begin to arise.
According to Sangvien’s younger sister Janja Thong-aram, Sangvien had borrowed Bt350,000 four years ago but was told by the moneylender this year that she owed Bt3.5 million.
“After we petitioned for help from the authorities, the moneylender agreed to lower the amount to Bt1.5 million,” Janja said, adding that Sangvien had tried to pay the debt including the hefty interest.
“But when paddy fields didn’t provide crops she expected, she became desperate,” Janja said. Sangvien’s family lives in Lop Buri province.
In Bangkok, a vendor at a fresh market yesterday disclosed that a loan shark in her area lent her Bt10,000 and charged her a daily interest rate of 30 per cent.
“I ended up paying Bt400,000 in total,” she said. “I went to the point of mortgaging land plots in my home town in Si Sa Ket province because the moneylender’s henchmen raided my home and threatened me.”
The Lawyers Council of Thailand, meanwhile, promised to extend help to those struggling with debt problems.
“Don’t set yourself on fire. Don’t kill yourself. If you fall into trouble, seek help from us,” the council’s vice president Sunthorn Phayak said.
He said the council had about Bt25 million in funds to help people in need.
Janja called for help from the council on behalf of her elder sister yesterday.
Although her sister’s moneylender has now said the debt will be written off, Janja remains worried because she does not have the promise to cancel the debt in writing yet.
After meeting with Janja, Lawyers Council president Dej-udom Krairit vowed to set up a panel to look into Sangvien’s case. He said the council would propose a draft law that would provide better legal protection for small-scale debtors and farmers.
“Many countries such as the United States already had such laws in place,” Dej-udom noted.
He said the council would also educate farmers and small-scale debtors about their rights and fair debt repayments.
According to police, 1,724 loan sharks were arrested over the past year. Most were arrested in the Central region and the upper Northeast.
Worapong warned police not to support loan sharks’ illegal activities.
“If you are involved, you will face serious punishments,” he said.
