CRIMINAL PENALTIES FOR CHARGING EXCESSIVE INTEREST LEGAL ISSUES CONCERNING RATES

Abstract

                 This research aims to examine the legal issues concerning the imposition of criminal penalties for charging excessive interest under the Act on Prohibition of Charging Excessive Interest Rates, B.E.2560 (2017). The study analyzes the appropriateness of criminal sanctions and the legal consequences arising from charging excessive interest. It also conducts a comparative study of the laws of Singapore, Malaysia, Japan, and the United States of America to identify approaches for developing Thai law to more effectively protect debtors and prevent exploitation by creditors who have greater economic power. The study collects and analyzes information from textbooks, books, academic articles, research studies, journals, theses, print and electronic media, as well as Thai and foreign court judgments. Content analysis is employed to categorize the information, identify key issues, and synthesize the findings in order to draw conclusions and conduct a comparative discussion in accordance with the research objectives.
                  The findings reveal three significant limitations in the current Thai legal framework. First, the law does not provide for recidivism or engaging in moneylending as a regular business for profit as aggravating circumstances warranting enhanced criminal penalties. Second, there are no provisions addressing offenses committed by groups or networks. Third, the Act on Prohibition of Charging Excessive Interest Rates, B.E.2560 (2017), does not clearly prescribe the civil consequences of charging excessive interest. Consequently, determining such consequences requires reliance on interpretations of the Civil and Commercial Code and Supreme Court precedents, resulting in ineffective protection of debtors.
                  The researcher proposes amending the Act on Prohibition of Charging Excessive Interest Rates, B.E.2560 (2017), by stipulating that recidivism, engaging in moneylending as a regular business for profit, and committing offenses as part of a network or group of persons constitute aggravating circumstances warranting enhanced criminal penalties. In addition, the civil consequences of charging excessive interest should be expressly prescribed in the Act. Specifically, the portion of interest exceeding the legal limit should be declared void, and any amount paid by the debtor in excess of the legal limit should be automatically applied toward the principal. These measures would provide debtors with more effective protection and ensure greater fairness.