Police are working with the Finance Ministry to crack down on illegal money-lending rackets, as more than 700 loan sharks have been blacklisted by authorities.
Recent investigations found most loan sharks were linked to three major syndicates active in the central province of Uthai Thani and Rayong and Chon Buri in the eastern region.
The others are Khon Kaen and Udon Thani in the Northeast, deputy national police chief Chalermkiat Srivorakhan told the media after a meeting Wednesday.
Police and Finance and Interior ministry officials attended the meeting.
The Royal Thai Police received a list of 762 loan sharks operating nationwide from the Finance Ministry, based on complaints lodged by victims of illegal money lenders.
However, initial checks by authorities have found no soldiers or policemen are involved, assistant national police chief Chaiwat Kateworachai said.
Some loan sharks on the Finance Ministry's list match those on the one compiled by the police force, he said, and have fled to evade police, the officer said.
He said legal action has been taken against some loan sharks who used violence to demand repayment from debtors and charged excessive interest rates.
Pol Lt Gen Chaiwat added that some loan shark operators exploit consignment land sale contracts to acquire land belonging to debtors.
Often, debtors are forced to sign a consignment land sale contract which requires the debt be repaid within two or three months.
This makes it almost certain debtors cannot service the debt, resulting in the loss of their land, he added.
Boonchai Charassangsomboon, an adviser on international economics at the Fiscal Policy Office under the Finance Ministry, said several measures were recently implemented to solve the loan shark problem.
They include giving people more access to legal loans, increasing channels for debtors to file complaints against illegal lenders, and issuing licences to legal lenders who provide loans of no more than 50,000 baht.
The latest measure is to use police to help debtors mediate debts with loan sharks, with prosecutors overseeing the process, he said.