The Department of Special Investigation (DSI) has forwarded a list of names of people in six major loan shark networks with a total cash flow of 1.4 billion baht to the Revenue Department, to force them to pay taxes on their earnings.

The list was handed to the department when Wisit Wisitsoraat, permanent secretary for justice; Pol Col Paisit Wongmuang, DSI director-general; and Pol Lt Col Wichai Suwanprasit, secretary for the Legal Aid Center for Debtors and Victims of Injustice, visited finance permanent secretary Somchai Sujjapongse and department director-general Prasong Poontaneat.

The information was shared as part of coordinated efforts to suppress loan sharks exploiting people, according to officials.

Mr Wisit said the DSI has proceeded with criminal lawsuits against major loan sharks operators who demand lofty interest rates from their borrowers, beyond legal limits.

A probe found a huge amount of money in circulation in loan shark networks and the department was contacted to ramp up tax measures against "exploiters", he said.

Many clients were found to be farmers, who risk losing their farm land after defaulting on predatory loans, he said.

"The DSI has submitted a list of private lenders who overcharge for the loans they provide, to the department director-general so measures to tax them can proceed. They consist of six groups with combined money in circulation of 1.4 billion baht," said Mr Wisit.

These loan shark operators were found to have occupied more than 3,400 rai of land between them, much of it believed to have been acquired from debtors who have defaulted, and they are also involved in legal battles with more than 1,800 debtors, he noted.

As part of Finance Ministry measures to assist the public, people can access loans urgently under the so-called "pico finance" scheme, Mr Wisit said.

Under the scheme, people can borrow up to 50,000 baht each and businesses with a registered capital of at least 5 million baht can also apply to be micro-lenders permitted to lend no more than 50,000 baht per customer a year and charge a maximum of 36% interest per customer a year.

According to Pol Col Paisit, two of the six loan shark groups are active in Phetchabun and others in Chaiyaphum, Khon Kaen, Chiang Rai and Prachuap Khiri Khan.

Source:
courtesy of BANGKOK POST

by KING-OUA LAOHONG

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