Bangkok: Central Investigation Bureau police have arrested a 27-year-old man suspected of running a loan operation through a mobile application, charging an astronomical interest rate of 9.4% per day, amounting to 3,474.80% per annum.
According to Thai News Agency, the Central Investigation Bureau police, in collaboration with Suthisan Police Station investigators and various agencies, apprehended Mr. Pakorn, who is alleged to have imposed these excessive interest rates. Borrowers were required to repay both the principal and interest within a week, failing which they faced severe consequences, including threats and public shaming.
The arrest took place on Soi Ratchada 36 in the Chatuchak District. Investigations revealed that 24 other individuals were implicated, using Mr. Pakorn's bank account to facilitate the transfer of loans and collection of interest payments. Summonses have been issued for these individuals to come forward and acknowledge the charges, yet none have complied. Authorities are now contemplating seeking court-issued arrest warrants. Police have also warned the public about the dangers of resorting to such informal loans, which could lead to violence and misuse of personal information.