KHON KAEN — An accused loan shark who amassed a fortune by charging daily interest rates of 20% was arrested in Muang district of this northeastern province on Wednesday.
Police and soldiers raided four houses used by suspected loan sharks following complaints they offered private loans at extortionist rates. Residents in the first three houses fled before officers arrived.
But Bancha Thawilnok, 32, owner of the fourth house, was apprehended and more than 100 loan contracts and a number his customers' vehicle-registration books were seized.
Police said he confessed to all charges and was being held at Muang police station for legal action.
Lt Col Pithakpol Chusri, chief of the military peacekeeping task force in Khon Kaen, said the unit had received many complaints about illegal money lenders. That prompted authorities to closely monitor suspected loan sharks in the province.
An investigation concluded Mr Bancha had provided loans with an interest rate of 20% a day. In addition, borrowers of 10,000 baht or more were required to pay off their debt within 24 days or the principal would double.
"The amount of the debt would later (double again) if the money was not repaid in the next 24 days. Those who could not pay would have their motorcycles or cars seized," Lt Col Pithakpol said. Many motorcycles and cars were found at the house.
Authorities planned to investigate Mr Bancha's asset acquisitions.