Weaning the Thai
public off loan sharks
will the loan sharks cooperate?
By Jon Fernquest
The
government scheme to help Thai people "escape the
grip of loan sharks"
is off to a
slow start.
People are staying away from the government program because they are afraid of "reprisals," "intimidation," and are "worried about how the money lenders would react."
There are also reports of violence with "three debtors...allegedly assaulted by loan sharks after registering for the scheme" (Read article).
Exactly what violent methods do loan sharks in Thailand traditionally use to collect debts? [Never seen this documented]
Wouldn't they use the same violent methods to prevent the government taking their business away?
Will government "cooperation" with loan sharks really be that easy?
(Also read a previous article on loan sharks, photo on right of typical tough looking American mafia loan shark)
Today's article begins after the vocabulary:
wean off - make
people gradually stop doing something that is bad for them (original
meaning: gradually ending a baby's dependence on their mother's milk)
loan sharks - people who offer loans at high interest rates often backed by violence or blackmail (See Wikipedia)
cooperate (verb) - work together to achieve goals
cooperation (noun) - working together to achieve goals
escape the grip of loan sharks - end the control that loan sharks haev over their borrowers ("grip" means "holding tight with hand")
off to a slow start - at the beginning moving slowly
reprisals - attack a person because they have caused harm to you
intimidation - frightening people to make them do what you want
allegedly - claimed but not yet proven
assault - the crime of physical violence against another person, includes threats of violence in the US (See Wikipedia)
allegedly assaulted - claimed that they were assaulted, but claim not yet proven
collect debts - the process of getting borrowers to pay back amounts of money they borrowed (difficult if they do not have any money)
loan sharks - people who offer loans at high interest rates often backed by violence or blackmail (See Wikipedia)
cooperate (verb) - work together to achieve goals
cooperation (noun) - working together to achieve goals
escape the grip of loan sharks - end the control that loan sharks haev over their borrowers ("grip" means "holding tight with hand")
off to a slow start - at the beginning moving slowly
reprisals - attack a person because they have caused harm to you
intimidation - frightening people to make them do what you want
allegedly - claimed but not yet proven
assault - the crime of physical violence against another person, includes threats of violence in the US (See Wikipedia)
allegedly assaulted - claimed that they were assaulted, but claim not yet proven
collect debts - the process of getting borrowers to pay back amounts of money they borrowed (difficult if they do not have any money)
MONEY LENDING
Govt launches loan shark protection scheme
1/12/2009King-oua Laohong
Tens of thousands of loan shark victims are expected to sign up today for a government refinancing scheme as law enforcement officers to go into overdrivepressure illegal money lenders to cooperate.
Registration, which is open until Dec 30, is an attempt to reach out to about a million households with debts incurred before Nov 19. They have been offered soft loans of up to 200,000 baht to pay off loan sharks.
Department of Special Investigation director-general Tharit Pengdit said his department would open a centre today to receive complaints about "ruthless" lending.
loan shark – a
person who charges very high interest rates for money borrowed
ผู้ปล่อยเงินกู้โดยคิดดอกเบี้ยสูงมาก
refinancing - create a new loan to replace an old loan
go into overdrive - work extra hard
pressure X to do Y - force X to do Y
cooperate - work together with other people to achieve a goal
pressure to cooperate - force people to work with you (to achieve goals)
pressure illegal money lenders to cooperate - force the loan sharks to work with them (to achieve the goals of the program)
registration - recording in an official list
reach out to - make contact with and try to help
household – a group of people, often a family, who live together ครัวเรือน
debts incurred - money that was borrowed
soft loans – loans with a very low rate of interest เงินกู้ดอกเบี้ยต่ำ
ruthless - very cruel, will do anything to get what they want
refinancing - create a new loan to replace an old loan
go into overdrive - work extra hard
pressure X to do Y - force X to do Y
cooperate - work together with other people to achieve a goal
pressure to cooperate - force people to work with you (to achieve goals)
pressure illegal money lenders to cooperate - force the loan sharks to work with them (to achieve the goals of the program)
registration - recording in an official list
reach out to - make contact with and try to help
household – a group of people, often a family, who live together ครัวเรือน
debts incurred - money that was borrowed
soft loans – loans with a very low rate of interest เงินกู้ดอกเบี้ยต่ำ
ruthless - very cruel, will do anything to get what they want
He said several measures would be used to pressure illegal lenders to take part in the refinancing scheme.
The measures would include money laundering and tax evasion investigations which could result in the freezing and confiscation of assets.
He said loan sharks who resort to intimidation and force to make clients repay their debts would face extortion charges under the money laundering law.
"Legal action taken by the Justice Ministry will force the loan sharks to cooperate in the event they are reluctant to lower high interest rates," Mr Tharit said.
money laundering - disguising
illegally obtained funds so that they seem legal
(See Wikipedia)
tax evasion - the crime of not paying your taxes
freezing of assets - legally prevent people from using their assets
confiscation of assets - taking assets away from their owner
resort to Y - do something extreme because nothing else worked
intimidation - frightening people to make them do what you want
resort to intimidation - frighten people to make them do something (after nothing else worked)
extortion (noun) - the crime of obtaining money from people by using threats and force
face extortion charges - start a criminal extortion case to determine guilt and possiblybe punished for the crime
reluctant - don't want to do
tax evasion - the crime of not paying your taxes
freezing of assets - legally prevent people from using their assets
confiscation of assets - taking assets away from their owner
resort to Y - do something extreme because nothing else worked
intimidation - frightening people to make them do what you want
resort to intimidation - frighten people to make them do something (after nothing else worked)
extortion (noun) - the crime of obtaining money from people by using threats and force
face extortion charges - start a criminal extortion case to determine guilt and possiblybe punished for the crime
reluctant - don't want to do
He said the Public Sector Anti-Corruption Commission and the Department of Rights and Liberties Protection would work together with the DSI.
Ultimately, the success of the government's drive against loan sharks will depend on the borrowers.
"What if they still go back to the backstreet lenders after clearing their debts?" Mr Tharit said.
Public Sector Anti-Corruption
Commission -
Thai government agency investigating corruption of government workers
and officials
Department of Rights and Liberties Protection - Thai government agency
backstreet lenders - small moneylenders who work in secret on the "backstreets" of a town
clearing their debts - payoff money they borrowed (so they no longer owe money to those lenders)
Department of Rights and Liberties Protection - Thai government agency
backstreet lenders - small moneylenders who work in secret on the "backstreets" of a town
clearing their debts - payoff money they borrowed (so they no longer owe money to those lenders)
Anti-Money Laundering Office (Amlo) acting chief Sihanat Prayoonrat said money lending did not constitute a crime when no extortion was involved.
He said a committee on asset seizure had yet to be appointed but Amlo would gather information on illegal lending.
anti-money laundering - legal
controls that require financial institutions to prevent or
report money laundering activities (See Wikipedia)
Anti-Money Laundering Office (Amlo) - the Thai government office that investigates people for the crime of money laundering
did not constitute a crime - these actions are not a crime
asset seizure - taking an asset away from its owner
Anti-Money Laundering Office (Amlo) - the Thai government office that investigates people for the crime of money laundering
did not constitute a crime - these actions are not a crime
asset seizure - taking an asset away from its owner
Meanwhile, police in Songkhla yesterday rounded up 11 people in a raid on a house in Muang district in connection with illegal lending.
The raid netted 70,000 baht in cash and six motorcycles used to collect payments.
Police said the suspects admitted to working as debt collectors for a loan operator in Bangkok and collected from 70,000 to 80,000 baht daily.
They said clients were charged a monthly interest rate of 20%.
Police said they had tracked the whereabouts of the loan operator and expected to make an arrest soon.
rounded up - gather
together or collect people and bring them to one place
a raid - when the police enter a building suddenly to catch criminals or gain evidence of illegal activities
netted 70,000 baht in cash - got or received 70,000 baht in cash
debt collectors - people who collect loan money from borrowers (sometimes by threat or force)
loan operator - a loan shark
tracked the whereabouts of the loan operator - finding out where the loan shark is
a raid - when the police enter a building suddenly to catch criminals or gain evidence of illegal activities
netted 70,000 baht in cash - got or received 70,000 baht in cash
debt collectors - people who collect loan money from borrowers (sometimes by threat or force)
loan operator - a loan shark
tracked the whereabouts of the loan operator - finding out where the loan shark is
(Source: Govt launches loan shark protection scheme, 1/12/2009, King-oua Laohong, link)
