Police hunt Sakhon Nakhon Gang.
THE AUTHORITIES are hunting for an investor they believe is behind a loan-shark gang, whose 26 debt collectors were rounded up in Sakhon Nakhon's Muang district on Tuesday night, provincial Army commander Maj Kanok Phumoung said.
Officials have also confiscated a list of debtors’ names.
Following the raid conducted by a 40-strong team of Army, police and administrative officials, one suspect allegedly confessed that the gang sold cattle to fund the money-lending business. The gang reportedly preyed on vendors, lending between Bt10,000 and Bt20,000 at ridiculously high rates. For instance, if a vendor borrowed Bt10,000, he or she would have to pay a daily instalment of Bt500 for 24 days. The suspects, who hail from Sakon Nakhon, Nakhon Phanom, Udon Thani, Khon Kean, Uthai Thani and Samut Prakan provinces, face a charge of collecting illegal interest rates.
Kanok said the authorities believe an investor is behind this gang and a manhunt has been launched.
Thailand’s first debt-collection law was published in the Royal Gazette on March 6 and will be in effect 180 days later. Violators of the law face three to five years in prison and/or Bt300,000 to Bt500,000 in fines.
Under the new law, debt collectors are prohibited from using abusive language or threatening to publicly disclose the debtor’s name. It also prohibits creditors from collecting debts through deceptive methods and imposing unfair fees beyond the official limit.