TWO of three Chinese capitalists who together with a Cambodian woman operated the application “Rich Money” which charged exorbitant interest rates have surrendered after police raided their office on Rama 3 road, Thai Rath newspaper reported today (Dec. 21).
The Centre for Informal Debt Suppression together with the Central Investigation Bureau police team mounted the raid after several complaints from victims that they had to pay far higher interest rates than legally permitted.
This company granted informal personal loans from 2,000 to 50,000 baht with repayment to be made within seven days.
So if a client borrowed 2,000 baht, he would only get 1,220 baht with 780 baht, or 39%, being deducted as service fee. Despite this the borrower still had to repay the full amount plus interest. If he failed to do so on time debt collection was conducted in an intimidating way with abuses and threats sent by SMS and information about the borrower spread to third parties thus leading to humiliation.
Arrest warrants were issued for three Chinese capitalists, Mr. Xie Zuo Xiang, Mr. Luo Meng Meng and Mr. Li Ke Yu as well as Mrs. Sopheak Voeurn from Cambodia. However Xie Zuo Xiang and Luo Meng Meng have surrendered.
Police are now hunting for other gang members and chasing the money trail with additional charges to be filed if more offenses are uncovered.
Senior police officers at a briefing on details of this case today. Photos: Thai Rath