Majority objects to teachers not paying debts

[webfact]

Majority objects to teachers not paying debts

By Thai PBS

 

 

More than 75 percent of respondents to an opinion poll disagreed with a threat by a group of  teachers  to stop paying debts to the state-run Government Savings Bank.

 

Last week, a group of about 100 teachers publicly announced that all the teachers who are indebted to the Government Savings Bank will stop servicing their debts as of August 1. The move has drawn widespread criticism from the public – and even many teachers themselves – prompting the bank to threaten legal action against defiant debtors.

 

The same poll conducted by Super Poll during July 19-21 among 1,156 samples from different occupations and professions also showed that 82.6 percent of the respondents were supportive of GSB in its handling of the debts created by teachers, saying that the bank has been flexible all along to help the teachers by charging low interest rate and in resolving their unorganized debts.

 

Full story: http://englishnews.thaipbs.or.th/majority-objects-teachers-not-paying-debts/

 

-- © Copyright Thai PBS 2018-07-23

[Bob12345]

Good, let them pay their debts or bear the consequences. Maybe make an example of these 100 teachers to show that making loans is serious business and should not be taken lightly.

[robblok]

1 minute ago, Bob12345 said:

Good, let them pay their debts or bear the consequences. Maybe make an example of these 100 teachers to show that making loans is serious business and should not be taken lightly.

Seems we see eye to eye in this case. If you take on debt you should be willing to repay it. Its a agreement between two parties and the person taking up the debt has agreed to the terms. So why not pay ? 

 

I said it before by helping the farmers with zero interest and debt restructuring you will get others who want the same. You can't just support one group and not an other. Now teachers want a break who is next 711 employees ? 

 

It just shows in Thailand you can get many things done if your in a large group (voting block) and apply pressure.. if your not then your just a nobody. Sometimes governments must stand up and not give in.

[BobBKK]

Lock them up!  

[inThailand]

This LOS, paying back money is crazy. Same as their word. Worthless! 

[Vacuum]

33 minutes ago, inThailand said:

This LOS, paying back money is crazy. Same as their word. Worthless! 

In LOS, a loan is cosidered as a gift.

[klauskunkel]

If some government officials can borrow watches without consequence, then why not money?

Yeum (borrow) = Leum (forget)

[Chris Lawrence]

If its over the odds, they may have a gripe. The best thing to do is shop with your feet and re-finance. But chalkies are considered well educated and as I said before my first purchase I read the whole contract. I was about 24-25. 

[jaltsc]

COLLATERAL

If the teachers refuse to pay back their debts, then the banks should repossess whatever they put up for "collateral". Is that a foreign concept to the Thai banking industry, or the banks don't bother with it, and just pass on the losses to the rest of their cusotmers?  Perhaps the teachers would be happier having to borrow money from loan sharks. I'm sure they wouldn't skip out on payments then. Unless they want to take out another loan to pay for the wheelchair that they would using for the remainder of their lives. 

 

Edited July 23, 2018 by jaltsc

[jaltsc]

35 minutes ago, Vacuum said:

In LOS, a loan is cosidered as a gift.

Tell that to the loan sharks, and see if they accept that perception.

[Lunchbob]

They work at jobs to pay their debts. If they do not pay their debts they lose their jobs.

[Happyman58]

Maybe they are having trouble repaying their loans. Teachers are very badly paid in Thailand Sad really when u hear the deputy Pm gets paid 100,000 baht per meeting he attends and half the time he never attends and still gets paid. But that is no excuse not to repay Maybe they should start a campaign to show their pay and conditions compared to the gov officials But Thais are so docile and they never seem to stand up for what is right. Oh don't worry the junta knows this also, therefore, they feel no threats to their illegal government

[humbug]

Junta/yellow shirts have been doing this for decades, keeping onside the civil service through freebies and soft loans. Teachers come under this group

 

out of 450,000 teachers, 300,000 teachers gained easy loans of 3 million baht over 30 years from the Government Savings Bank.

 

Thats translated into 100's of billions of baht over the coming years to bail the Government Bank out.

 

Whose going to help pay, well all those not in the 'Thai State' will pay.

 

Thid insight is also worrying for it could be a 'Black Swan' event as thats alot of homeowners and car owners who will defunct on major loans.

 

A Teachers salary could never pay back such amounts. Its tandamount to giving free money.

 

Who else has got easy loans in the civil service? 

[Elkski]

I have always repaired my loans but there must be some limits to how much Banks can loan as % of income or it becomes predatory.  

Thais don't seem to be the sharpest at math and finance. 

 do you think it's okay for banks to loan   so much that monthly payments are 60% of net income? And knowing that teachers retire at 60 is it okay for banks to make the in date on these loans when they are 67 knowing that pension payments are typically 50% of net income of the average of the last 3 years?   you can think about putting these 100 in jail but I think this is the tip of the iceberg.   also how can the government Healthcare System pay for these teachers parents health care as well as their children till they're 25

[BEVUP]

4 hours ago, Chris Lawrence said:

The best thing to do is shop with your feet and re-finance.

& this is half the problem

They can't, their locked into a term of 30 yrs (can't pay back early ) with the GSB only

[from the home of CC]

In Canada it's figured that 50% of people live paycheck to paycheck, debt mismanagement is universal.  

[Jonmarleesco]

13 minutes ago, BEVUP said:

& this is half the problem

They can't, their locked into a term of 30 yrs (can't pay back early ) with the GSB only

Highly doubtful that they're locked in for thirty years; three, four, five, perhaps, but not thirty. But I doubt another lender would be willing to underwrite refinancing.

[BEVUP]

9 minutes ago, Jonmarleesco said:

Highly doubtful that they're locked in for thirty years; three, four, five, perhaps, but not thirty. But I doubt another lender would be willing to underwrite refinancing.

Yeh I know what you mean, but I had read that at the beggining of the other Thread

[robblok]

1 hour ago, Elkski said:

I have always repaired my loans but there must be some limits to how much Banks can loan as % of income or it becomes predatory.  

Thais don't seem to be the sharpest at math and finance. 

 do you think it's okay for banks to loan   so much that monthly payments are 60% of net income? And knowing that teachers retire at 60 is it okay for banks to make the in date on these loans when they are 67 knowing that pension payments are typically 50% of net income of the average of the last 3 years?   you can think about putting these 100 in jail but I think this is the tip of the iceberg.   also how can the government Healthcare System pay for these teachers parents health care as well as their children till they're 25

Where I come from they limited how much people could loan for a home, loads of people complained. So there are two sides to that coin. 

Edited July 23, 2018 by robblok

[BEVUP]

3 minutes ago, robblok said:

Where I come from the limited how much people could loan for a home, loads of people complained. So there are two sides to that coin. 

Same here & they would not give such a hefty loan if it falls within 15 yrs of your retirement age

[humbug]

4 hours ago, Jonmarleesco said:

Highly doubtful that they're locked in for thirty years; three, four, five, perhaps, but not thirty. But I doubt another lender would be willing to underwrite refinancing.

you right there isnt another lender to help because its the Government Savings Bank and it is 30 years for 3 million baht which has been stated by 'other recent articles' on Thai visa on this subject

 

The last bank to go belly up was the Thai Military Bank after the last coup in 2006. No gueses in what happened there

 

Afterwards the Junta Government bailed out its own bank with public funds and gained overseas investment

 

Government Savings Bank is much more interesting as a ' Black Swan' event as 100's thousands of civil servants have gained easy loans to keep people backing the state. The teachers are also part of the state

 

Clearly the figures being defaulted now and potentially in the future could be astronomical as to it to even get through the Junta press but it could well be in the 'Hundreds of Billions'

 

Lastly at a guess the low/middle property segement would be dominated by the Civil Service but as a recent TV article stated 300,000 teachers out 450,000 took up the Loans. No mention on the other Loans for Civil Servants out there 

 

Edited July 23, 2018 by humbug

[Stargeezr]

The USA has a debt problem as well and many there barely afford the houses they

live in. Not long ago you could buy a house in the USA with no money down, and they

had big problems with bank foreclosures. Wonder how things are going today.

Geezer

[BEVUP]

2 hours ago, Stargrazer9889 said:

The USA has a debt problem as well and many there barely afford the houses they

live in. Not long ago you could buy a house in the USA with no money down, and they

had big problems with bank foreclosures. Wonder how things are going today.

Geezer

Same with Auss

& it's going to get harder as it has just been mentioned that housing is dropping, businesses going bankrupt , lack of employment, ect

So just like Thailand there will be a lot of defaults since people invested at peak times

& not much on the drawing board to look forward to 

[a977]

1 hour ago, BEVUP said:

Same with Auss

& it's going to get harder as it has just been mentioned that housing is dropping, businesses going bankrupt , lack of employment, ect

So just like Thailand there will be a lot of defaults since people invested at peak times

& not much on the drawing board to look forward to 

Oh! goody chance to pick up a cheap house or two or maybe a merc or three, actually I prefer a beemer

[Blue bruce]

The teachers borrowed the money for their own personal use. If they can't pay it back the banks should reposses their collateral.

[Elkski]

I understand these are variable rate loans.  Term end dates as late as age 72 in my example I know of. Retirement is 60. I've heard of some working as teacher aides for a year after.   Government workers can retire after 25 years of service.  There doesn't seem to be or at least didn't initially seem to be a total loan limit based on % of base pay.  My guess is collateral would be 30% and how hard is it to sell a house that may be higher price than an average Thai can afford. Not much collateral on a 10 yr old car ,or 200,k spending money loans when they let theses loans be rolled into 30 year refi home loans! There is no way to default or stop payment on one of the loans since it's directly withdrawn out of pay?. There is no way for an individual to initiate bankruptcy.  Bankruptcy needs to be initiated by the lender.  Big thugs will come. I guess the only way to initiate bankruptcy would be to quit going to work.  But if you did quit paying somehow, you would lose your government commission job. And can be hounded forever. Maybe in some cases family rice land is collateral?  Teachers were not given any clothes allowance for having to wear black for a year.  They may not even get uniform allowance. Yes they signed contracts.  But bankers must take some blame.   Some populations are not educated enough to be held responsible for variable rate loans like this with no limits.    Bankers knew it.  

It may not be right but I think thousands of defaults are coming. Teachers can't live on 5000 baht. It is a crisis waiting for a spark. 

Edited July 25, 2018 by Elkski

[Cereal]

On 7/23/2018 at 9:30 AM, Vacuum said:

In LOS, a loan is cosidered as a gift.

Cosidered...a typo to be sure, but verily it is apropos is it not? lol.

[Elkski]

Bangkok post has article July 25 about a teacher who co-signed on loans of 10,000 from the Student Loan Fund for 60 children and 30 have not repaid and she is going to lose her land and house. 

The article goes on to talk about how many millions of students have taken out loans on average of 100000 and something like 48 billion is in default right now.   one line of interest is it mentions that 3.8 million are in good standing and have been paying on their loans for the last decade.  I didn't think it was okay to put a link to the Bangkok Post here?

[Barnet]

Not all but many Thai teachers get hefty backhanders on top. Corruption rules supreme at the earliest stages of Thai society and these 'poor' souls are at the very heart of it.

 

Again, many, but not all are completely incompetent.