Uthai: Central Investigation Bureau police have successfully dismantled a loan sharking operation accused of imposing interest rates as high as 600% per year, uncovering over 30 million baht in circulation.

According to Thai News Agency, the police arrested three individuals, Mr. Natthaphong, 36, Mr. Vinet, 28, and Mr. Teerawut, 34, in the Uthai District of Phra Nakhon Si Ayutthaya Province. The trio faced charges for jointly running an unauthorized loan business and charging interest rates surpassing the legal limits. The police were tipped off by a citizen about an informal loan network that was charging interest rates as high as 626.25% annually. This network primarily targeted small business owners who struggled with cash flow issues and were unable to secure legal funding options.

Borrowers involved in this network were not required to provide proof of identity or guarantors, making it accessible yet risky. The loan amounts were disbursed via internet banking, with interest being deducted from both the first and last installments. Those who defaulted on payments were reportedly subjected to harassment, as the loan operators showed no regard for legal repercussions.