Crackdown on loan apps results in arrest of 2 Chinese women, 17 Thais

The Centre for Countering Abuse by Loan Sharks (CCALS) announced on Monday that the ring was allegedly run by two women – Qingmei, 30, and Baolu, 34 – who are now in police custody.

Deputy National Police chief Pol Lt-General Surachate Hakparn, who also leads CCALS, said the gang ran the Self Service and Krapao Hai Than Mee Yuem (Wallet Providing Loans) apps.

After the initial investigation, CCALS obtained arrest warrants against 22 suspects on December 13 and joined forces with local police stations to search 22 locations in Bangkok, Nonthaburi, Chiang Rai, Phayao, Chonburi and Prachuap Khiri Khan.

Surachate said the raids resulted in 19 people being arrested, namely two Chinese nationals and 17 Thais.

He said the suspects face the following charges:

• Running an unlicensed loan business

• Charging interest that is far higher than allowed by law

• Intimidating debtors into repaying their debt

Surachate said CCALS has frozen 33 bank accounts with a total cash of 5.29 million baht. Police also seized five savings bank books, three computers, three ATM cards, two mobile phones, four SIM cards, and one network router.

The deputy police chief also said the two apps served as portals to access 40 other lending apps that charge borrowers 40% interest per week, which adds up to 2080% per year.

He said if borrowers fail to repay the debt within seven days, the apps would send them intimidating messages or members of the gang would call and threaten them.

Surachate explained that the two Chinese women were the beneficiaries of the operation and provided funds for the loans. He added that the duo tried to leave Thailand but police managed to arrest them first.

The Krapao Hai Than Mee Yuem app has reportedly been running for about six months and is linked to some 20 bank accounts with about 1 billion baht in circulation.

He said the Self Service app has also been running for six months, with 11 bank accounts and about 1.5 billion baht in circulation.

Surachate believes the money earned from the two apps was laundered from purchasing cryptocurrencies and computer products.

Speaking at the same press conference, Pol Colonel Phadol Chandon, chief of the Economic Crime Suppression Sub-Division 5, said some victims in Chanthaburi and Samut Prakan had complained that they were being threatened by their creditors after they borrowed money through the apps.

Phadol said some 80,000 people have borrowed money via the two apps. Under the app, he said, if a person was to borrow 3,000 baht, they would only receive 1,800 baht, with the remaining 1,200 already deducted as interest. The borrower, however, would have to return the entire 3,000 baht within seven days or suffer threats and intimidation.