All provinces to open centres for loan shark victims as Thai household debt soars
The Interior Ministry has issued an urgent order to all provincial governors to establish a centre to help victims of loan sharks, as household debt soars in Thailand.
The centres are expected to be operational and accepting registrations from loan shark victims by December 1, a source with knowledge of the matter said on Wednesday.
The order came after a nationwide survey of people in debt to loan sharks was launched Interior Minister Anutin Charnvirakul on Monday.
Anutin, who doubles as deputy prime minister, said the survey findings would be used to formulate comprehensive measures to combat the longstanding problem of non-formal debt.
The order stipulates that each province must establish a debt centre and also a committee tasked with solving loan shark. The committee will meet weekly or monthly to discuss measures and the progress of the centre’s operations.
Each centre will provide different channels for loan shark victims to register, including online via QR code, a telephone hotline and a service counter at each district office.
The ministry expects to be updated every month on the number of loan shark victims registered.
Thailand’s household debt has surged 11.5% this year to its highest in 12 years, with the average household more than 500,000 baht in debt. Indebted households often turn to high-interest informal lenders (loan sharks) for loans to pay off their formal debt.
