PHUKET – Many motorcycles were parked in the house of a Belgian man in Phuket; police officers discovered that he operated an unlicensed pawn business and lent money with high interest rates.
On May 25, Pol. Lt. Col. Thepnom Suwannarat, Superintendent of Investigation Division 3, Provincial Police Region 8 arrested Mr. Philippe, a 63-year-old Belgian national residing in Moo 7, Rawai Subdistrict, Mueang District, Phuket Province, on charges of operating a pawn business without permission.
The authorities found evidence, including 13 motorcycles, 1 mobile phone, and 15 national identification cards (belonging to debtors).
Initially, the officials charged him with “operating a pawn shop without permission, engaging in the personal loan business under normal commercial supervision without permission, and allowing others to borrow money with interest rates exceeding the legal limit.” The suspect and evidence were then handed over to the interrogators at Chalong Police Station for further legal proceedings.
The establishment of pawn shops is regulated by the Pawn Shop Act of 1962, which requires operators to obtain permission from the government. The Ministry of Interior is responsible for considering and controlling such businesses.
Meanwhile, engaging in the personal loan business is governed by the Financial Institution Business Act of 2008, which requires operators to obtain permission from the Minister of Finance, based on recommendations from the Bank of Thailand.
Under Thai law, when allowing others to borrow money, the interest rate on loans must not exceed 15% per annum or 1.25% per month.
