The Problem on Law Interpretation of Act Prohibiting The Charging of Excessive Interest Rates, B.E. 2560: The Case Study of the Penalty of Excessive Interest Rates

Abstract

This academic journal is concerned with Act Prohibiting The Charging of Excessive Interest Rates, B.E. 2560, was established in 2017 to improve upon its predecessor, the original, 85-year-old law. The charging of excessive interest rates is the illegal action of debtee by taking advantage of the debtor, leading to various problems in society and ultimately affecting the security of the people and the state. Yet, the usury rates problems in Thailand still remain and continue to worsen in every province. The Act Prohibiting The Charging of Excessive Interest Rates, B.E. 2560 law expands categories/types of interest and non-interest benefits as well as raises both civil and criminal penalties. The Supreme Court, in the past and present days, found the law to run afoul with civil and criminal laws principles. The author of this article, therefore, respectfully suggest the Court to consider interpreting the law in accordance with these factors: (1) Any loan agreement stipulating excessive rates that violate usury law is void; (2) A debtee, in cooperation with the debtor, (knowingly?) engaging in criminal offences is an accomplice and shall face the same degree of punishment as the debtor; (3) Principal is an asset/property used or involved in the commission of a crime and is inaccessible to the debtor. Such asset/property shall fall into state possession. The debtee has a civil liability to recompense the principal received from the debtor to the state; (4) The state shall indemnify the borrower who considered a victim suffered from the wrongful act committed by the loan lender.