defaulting on credit card debt as a foreigner

[Longbow212]

To cut a long story short recently I was sent a defective product by a large Thai online retailer, I immediately informed them and they promised to collect the item. Weeks later they still hadn't collected it so I filed a Visa chargeback with my Thai credit card company with extensive evidence of the defect and emails of exhaustive attempts to have them collect the item. It's a very clear cut case of the seller being in the wrong. However, the seller probably very familiar with these procedures has seemingly lied to Visa who at this stage appear to be siding with the seller. I am now considering simply not paying off the amount owed for the defective product and banking with someone else. 

 

What are the Thai procedures for debt collection and credit records? Would I have a permanent bad credit record or does it expire after a period of time etc?

 

Thanks

Edited December 11, 2018 by Longbow212
more details

[Crossy]

You will get a black mark in your credit record, but it does get erased after a period of time (not sure how long, 7 years rings a bell).

 

The question is of course, is the value of the item worth the black mark which may well stop you getting credit in the future?

 

The card company could cancel your card and sell the debt to a collection agency. These guys are rather less well regulated than back home and could employ, er, creative, collection methods.

 

 

[NanLaew]

Sounds like the OP may have maxed out his Thai credit card limit and fancies just walking away from this single, 'bad purchase' and all other totally unassociated but current debt on that card account?

 

Now, would that work back home?

 

Even if it is only this single 'in dispute' charge that remains on the plastic, the same question applies.

 

Would that work back home?

Edited December 11, 2018 by NanLaew

[OneMoreFarang]

What does your cc company tell you?

Normally, as far as I know, they are customer friendly and if you tell them you received a defect product normally they would side with you.

What is so special about this case that they think you should pay?

[KittenKong]

2 hours ago, Longbow212 said:

I am now considering simply not paying off the amount owed for the defective product and banking with someone else. 

 

What are the Thai procedures for debt collection and credit records?

I thought that for farangs Thai credit cards invariably required a cash deposit of at least the limit on the card? Unless you have a job and work permit.

 

So presumably either you have made a large cash deposit or they know your job details. Either way, if you try to avoid payment it presumably wont be very hard for them to claw back the money.

[madmen]

Dodgy thread IMO. sounds like he just wants to pull the pin but still maintain credit rating

. Story makes no sense, it's not the banks final responsibility to refund payment unless it's fraud

 

NO you can't just walk away. What on earth makes you think changing banks clears your dud rating?

 

 

[CharlieH]

There must be more to this as invariably the card company side with their customer not the merchant.

Its you they make money from not the merchant.

I would seperate out the purchase from any other debt on the card and make the required payments.

 

Tell them you will not pay that item until the situation is resolved.

If you maintain the monthly payments they cannot touch you.

 

Different thing if thats the ONLY item on the account. Then you tell them in writing your position and let them work it out. DONT try to ditch it ! you will regret it, work it out.

 

 

[Longbow212]

The situation is precisely as I described, if you think my query “sounds like” anything you are merely a cynic speculating at best. If you can’t state the legal facts for the query I made then please don’t offer any whataboutery. Looking forward to fact based and constructive replies.


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[hello55060]

So many people are so quick to jump to conclusions and always think the worst of people, perhaps because they have similar experiences in their own life who knows?

 

Anyway to the OP I don't have any speicifcs, but as other people mentioned to get a credit card you would need to have monthly income and possibly a work permit. They will just most likely threaten you with letters telling you pay off the balance for a couple of months, then after block your debit account if you have one with them or use the money in your debit to pay off the debt so make sure your debit bank accounts are with a separate bank. Then you would get blacklisted and they will sell your debt or to a debt collection agency and depending on the size and the amount of debt, could have bailiffs at your registered address or place of employment and have a court order sent against you. 

 

What is the amount in THB we're talking about here??

 

If it's a small amount they may just blacklist you and forget it as too much effort for them to try to recover it and you will just have a bad credit rating, if it's a large amount then they will do what they can do get it back. 

 

If you said you were poor and didn't have the money to pay back right now because you got screwed by the company you bought from then it's better than just ignoring it and making no attempt to pay it back. Everyone gets burned by someone or some company in their life, it's just one of those things that happen. If you plan on having a long term future in Thailand then it's best to try to sort it out and as I said say your poor and can't pay it all and offer a settlement fee or something rather than ignoring it completely 

 

If it gets to the stage when they haven't had any money from you for 6 months or something and you will be in a position to make them a settlement offer. I know in the UK friends have maxed out cards, never paid they back, then they end up settling a £3k debt for £1k or something so everything is negotiable you can normally end up just paying 30% to settle a debt and they will take it as it's better than nothing and paying money to companies to chase you up and other people and still not get any money. I know it's the principle in your eyes, but as a foreigner, in Thailand you're already at a disadvantage and the law will be against you, so I would suggest you try to maintain contact with the company and not ghost them. If you don't plan to live in Thailand then you could get away with just leaving the country and not paying them a cent, there's no way they would chase you up in another country. It just depends on your circumstances and where your plan is for permanent residence in the next 5 years. When you get blacklisted I think it's 5 years or so they will be on record for. Just keep the credit card company informed even if you tell them a load of bull it's will be better than ignoring them

 

 

Edited December 11, 2018 by hello55060
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[Gulfsailor]

Our company recently received a letter from a collection company about on outstanding phone bill of an employee. It was just a heads up that they will soon go to court and that there is a possibility the court orders that the company withholds a part of the salary to settle the debt. Mind you this was over a mere 2000 Baht. So if the OP is employed in Thailand, they will find you and will come after you. 

[Ks45672]

Anytime I've had a problem, the bank reversed the charges in my favour.....

I've never seen them taking the side of a dodgy merchant over a customer tbh

[NanLaew]

10 hours ago, Longbow212 said:

Looking forward to fact based and constructive replies. ...

No. You're actually looking forward to something like the following.

 

"Go ahead and walk away from the debt. The crap Thai bank and the cheating Thai retailer deserve each other. You're a farang and deserve so much better. Just pop across the street and get yourself some nice, new, unblemished credit from another bank. Do it again if needed as there's plenty on Thai banks out there that don't check on a farang's bona fides. They're all gagging for our money versus the pittance they get from all those tiny, inconsequential Thai account holders."

[simon43]

...whataboutery

 

Thanks - just learnt a new word ????

[Longbow212]

No. You're actually looking forward to something like the following.
 
"Go ahead and walk away from the debt. The crap Thai bank and the cheating Thai retailer deserve each other. You're a farang and deserve so much better. Just pop across the street and get yourself some nice, new, unblemished credit from another bank. Do it again if needed as there's plenty on Thai banks out there that don't check on a farang's bona fides. They're all gagging for our money versus the pittance they get from all those tiny, inconsequential Thai account holders."

Yet again, you are speculating at best about someone you know nothing about. If you can’t provide facts relating to my query keep your cynical opinions to yourself.


Sent from my iPhone using Thailand Forum - Thaivisa mobile app

[Longbow212]

No. You're actually looking forward to something like the following.
 
"Go ahead and walk away from the debt. The crap Thai bank and the cheating Thai retailer deserve each other. You're a farang and deserve so much better. Just pop across the street and get yourself some nice, new, unblemished credit from another bank. Do it again if needed as there's plenty on Thai banks out there that don't check on a farang's bona fides. They're all gagging for our money versus the pittance they get from all those tiny, inconsequential Thai account holders."

Yet again, you are speculating at best about someone you know nothing about. If you can’t provide facts relating to my query keep your cynical opinions to yourself.


Sent from my iPhone using Thailand Forum - Thaivisa mobile app

[Longbow212]

No. You're actually looking forward to something like the following.
 
"Go ahead and walk away from the debt. The crap Thai bank and the cheating Thai retailer deserve each other. You're a farang and deserve so much better. Just pop across the street and get yourself some nice, new, unblemished credit from another bank. Do it again if needed as there's plenty on Thai banks out there that don't check on a farang's bona fides. They're all gagging for our money versus the pittance they get from all those tiny, inconsequential Thai account holders."

Yet again, you are speculating at best about someone you know nothing about. If you can’t provide facts relating to my query keep your cynical opinions to yourself.


Sent from my iPhone using Thailand Forum - Thaivisa mobile app

[mogandave]

When I contested a charge on my Thai American Express against the Emporium they sided with me.

 

Thai credit cards do not have to be secured if can show income in Thailand.

[mogandave]

I think if the bank does not have a way of collecting in the event you default, they likely would not give you credit.