Illegal money loan application

2023, the year when Thai household debt reached 559,408 baht/household, with 80.2 percent being in debt in the system and 19.8 percent being in debt outside the system. One of the problems that afflicts Thai people is “illegal money loan apps” that can be easily downloaded in both the Play Store and App Store, which have more than 300 apps.

Easy application, just use a phone number and one ID card. This causes many people to become victims. Some apps trick victims into transferring money to pay fees. Then disappear without giving a single baht of loan. Some apps give real money. Then charge a fee and interest that is higher than the law requires. By advertising to call victims with false messages and specifying interest that is lower than what is actually collected Which most often has the following format:

1. Immediately deduct the fee from the loan amount . For example, the victim borrows 2,000 baht, but the fraudster transfers only 1,200 baht, claiming to deduct the fee, etc.

2. The interest rate is higher than stated in the advertisement. And it often exceeds the legal limit. For example, the advertisement states that the interest is 20 percent, which is misleading as 20 percent per year. But when actually collecting the interest, the interest is 20 percent per week, which the victim must find money to pay on a weekly basis, etc.

3. Extending the loan period to keep the victim in debt for a long time in order to collect a fee for extending the repayment period Follow-up fee and higher interest rates

4. Informing that the system has a problem when wanting to close the debt balance. So that the victim cannot escape from the debtor situation. and continually raising money to pay off debt, which may be pursued to collect debts and be charged various fees, including interest that increases over time in debt

5. Victims' personal information was stolen using an app that victims downloaded to get a loan. They often collect phone numbers, ID cards, and may access the victim's phone information. Especially the contact number that the victim recorded. To call or send messages to shame the victim and acquaintances or to threaten or intimidate if money cannot be collected from the victim.

Advice when falling victim to an app illegal money loan

If you are a victim of the app Illegally borrowed money Instructions are as follows:

1. Be mindful when you are being asked for money and stop paying the debt. Because no matter how much extra you pay The debt balance will never be exhausted. Because interest rates are high and there may be constant scams.

2. Avoid opening and reading messages. or receive a phone call from an unknown number Because it may come from the app. Borrow illegal money that comes to collect debts.

3. Talk to people around you. To prepare to deal with the threat of criminals in the form of creditors. So that people around us can understand that we are victims of the app. illegal money loan and is trying to solve the problem.

4. Gather evidence that has been used by the app. Take a fraudulent loan and report it. for the police to investigate and find out the facts and prevent other people from becoming victims Or you can call 1559, which is the Royal Thai Police hotline that receives reports of online scams. Can be contacted 24 hours a day.

5. Stop taking on more debt. Consider the overall picture of your current situation. To find the correct solution to the problem Do not borrow additional money to pay off debts. Because it will lead to endless debt. You may consider contacting the debt relief hotline 1213 or the debt winning hotline 1443 for additional advice.

6. Delete illegal money loan apps To prevent fraudsters from gaining access to our personal information.

7. Set privacy settings on social media accounts and change phone number To prevent criminals from reaching us Then you can make threats or blackmail again.

How to prevent being deceived by apps Illegal loan

We can prevent being tricked into borrowing money from apps. that are illegal as follows

1. Don't download apps. Outside of the Play Store and App Store

2. Before downloading apps from the Play Store or App Store, you should check that the app provider Such a loan Have you received a license from the Bank of Thailand (BoT) or not? https://app.bot.or.th/BotLicenseCheck Or click here to see a list of legal loan providers.

3. Check from the Call Center, website, or official social media accounts of the bank/company from which you wish to borrow money that they are really the service provider of that app or not, because scammers may pretend to use the name or logo.

4. In legal apps, details of the loan will be clearly stated, such as the loan amount and interest rate. (according to each type of loan that is not more than the law), payment schedule, fees, penalties, and various product conditions, and no processing fees are charged. or any fees before entering into a contract

References

1. Public Relations Department. (2023). Survey results of household debt in 2023 increased above 500,000 baht per household. It is expected that next year it will rise even higher. [Online]. Retrieved 10 November 2023. Accessible from https://thainews.prd.go.th/th/news/detail/TCATG230727151616389

2. Council of Consumer Organizations. (2023). How to do it? When falling victim to an app Illegal money loan . [Online]. Retrieved 9 November 2023. Accessible from https://www.tcc.or.th/tcc_media/illegal-money-loan-apps/

3. Krungsri The COACH. (2023). "Online loan app" for the new generation. You can borrow on your own, get approval quickly, get real money. [Online]. Retrieved 9 November 2023. Accessible from https://www.krungsri.com/th/krungsri-the-coach/loan/borrowing/know-personal-loan-app-for-genz

4. Yut. (2023). Facebook page: Illegal loan app, warning of criminals. [Online]. Retrieved on 8 November 2023. Accessible from https://www.facebook.com/profile.php?id=100075905604621