Laws & Regulations for loans from Gold Shops

[TKI]

Dear forum members,

 

which laws and regulations do apply when i pawn gold jewelry to the Gold Shop to get cash/a loan?

 

P.e.:

1. do i get a contract from the Gold Shop?

2. is there a legal restriction in the monthly/yearly interest rate?

3. what is the minimum period of arrears in interest payment until the pledged gold jewelry changes ownership from me to the Gold Shop?

4. can the Gold Shop set an expiry date until which the principal has to be paid back? and if the expiry date has passed, is the Gold Shop allowed to keep the pledged gold jewelry and take ownership?

[scottiejohn]

Ask the shop for a copy of the contract, take it home, read it and if happy you have your answers.

[TKI]

18 hours ago, scottiejohn said:

Ask the shop for a copy of the contract, take it home, read it and if happy you have your answers.

Thank you very much. The contract is all in Thai and i am not able to read it. The people in the shop also only speak Thai ????

[scottiejohn]

Depending on the amounts you are talking about it may be worth getting the contract translated either professionally or with an online translator.

Have you tried "shopping around" for a place that has an English language contract.  I certainly would not be signing  a contract for gold/loans etc without knowing the T&Cs

In answer to your main questions:

 

3. what is the minimum period of arrears in interest payment until the pledged gold jewelry changes ownership from me to the Gold Shop?   There definitely will be such a clause.

4. can the Gold Shop set an expiry date until which the principal has to be paid back? and if the expiry date has passed, is the Gold Shop allowed to keep the pledged gold jewelry and take ownership?   Again there definitely will be such a clause and they will invoke it without any leeway.

[TKI]

On 11/15/2018 at 12:47 PM, scottiejohn said:

Depending on the amounts you are talking about it may be worth getting the contract translated either professionally or with an online translator.

Have you tried "shopping around" for a place that has an English language contract.  I certainly would not be signing  a contract for gold/loans etc without knowing the T&Cs

In answer to your main questions:

 

3. what is the minimum period of arrears in interest payment until the pledged gold jewelry changes ownership from me to the Gold Shop?   There definitely will be such a clause.

4. can the Gold Shop set an expiry date until which the principal has to be paid back? and if the expiry date has passed, is the Gold Shop allowed to keep the pledged gold jewelry and take ownership?   Again there definitely will be such a clause and they will invoke it without any leeway.

Thank you very much for your efforts and good advice. I did do as you told me, and finally found a shop with an English version contract. My questions are answered in the contract.

 

Still i would like to know which Acts in the Thai laws are regulating such transactions, and if the contract applies to them. Do you know which Acts, or how i can find out?

 

Thank you very much in advance.

[scottiejohn]

5 minutes ago, TKI said:

Still i would like to know which Acts in the Thai laws are regulating such transactions, and if the contract applies to them. Do you know which Acts, or how i can find out?

Thanks for your thanks!

 

Sorry but I do not know the actual rules/regulations and acts.   The fact you have found a shop with an English contract available is a large leap forward.  From my experience these good reputable gold shops are well regulated and tend not to break the law(s) in anyway, but as I said previously they will enforce the contract (to their advantage) rigorously. 

 

I am not being funny but have you actually tried asking the shop owner if he knows/has any copies of the acts.

 

[TKI]

21 hours ago, scottiejohn said:

Thanks for your thanks!

 

Sorry but I do not know the actual rules/regulations and acts.   The fact you have found a shop with an English contract available is a large leap forward.  From my experience these good reputable gold shops are well regulated and tend not to break the law(s) in anyway, but as I said previously they will enforce the contract (to their advantage) rigorously. 

 

I am not being funny but have you actually tried asking the shop owner if he knows/has any copies of the acts.

 

Thank you very much! This is a very good idea. No, i did not ask yet. But i will do today and let you know the outcome. Wish you have a nice day. Best regards