Anyone have any knowledge of debt collection in Thailand?

[Kenny202]

My GF has a credit card debt from about 6 years ago with a company called Eon. They gave up chasing her about a year ago. Before were at her to make payment plans etc but she was fully committed paying off 3 other cards. Anyway looked like they gave up. The debt is about 30000 baht. Yesterday she got a call from another company called JMT who my wife seems to think has "bought" the loan off Eon. Reason is she called Eon and they basically said they have no record of her anymore so sounds like she might be right. She has recently paid off two other credit cards and maybe that has showed up somewhere and sent them a red flag, hence they have become more vigilant. She discussed with them the possibility of a monthly payment plan and they said no, too late for that. If she doesn't pay by the end of the month they will start court proceedings.

 

Firstly if Eon has sold or transferred the debt to another company, can they legally pursue it through the courts as the debt was not with them? Would they really take her to court over 30000 baht? I imagine all the court would do is make the parties work out a payment plan anyway. She has no real assets or job by the way. They have made an offer of a one off payment of 22,000 to clear it all by the end of the month which sounds like a great offer, but again I am not even sure of these peoples right to collect this money. For eg if Eon have written the debt off why should we pay this crowd and what would be gained?

 

Just for the record, before anyone starts judging...I had a fair bit to do with collecting money back home and I despise defaulters. Yeah she should have paid them and all that but I don't want to pay someone who isn't legally entitled to the money if at all possible. And how to verify it all so she is in fact clearing the debt. These people may have bought the loan at a very low price and perhaps have no legal right to collect the money as they are not acting as an agent for the principle

 

[norfolkandchance]

Hope you’ve got a good tin hat.

[robblok]

If someone buys a debt then they have the legal right, not a strange thing to happen. Its done a lot.

 

They often pay less to buy those debts and see what they can get but they certainly have a claim. 

 

the 22k is a nice offer they probably paid less. Its up to you if you want to risk it  or not.

[Ohyesuare]

Thai commercial law stipulates that debt has to be collected in a period of maximum 2 years. Sounds like as you correctly assumed, the company wrote off the debt and possibly sold off a database of non-payees cheap to some scummy collection agency whose job is to scare/make threats in order to collect whatever they can. Not saying it was right for your GF to not pay off her debt but it's too late for that now and paying some scummy company who buys debt for pennies on the dollar isn't really gonna make things right.

 

I am not a lawyer or anything close to one so do not take anything I said as fact and do your own clarifications. 

[BE88]

It's a bluff, it will cost them more to go with the lawyers than the debt they claim, don't answer any more.

 

 

[BritManToo]

6 years is too long, debt is gone.

IMHO don't even talk to them.

[The Hammer2021]

Defaulters are usually trapped by slick marketing and deliberately given more credit than they need or can afford. The CC companies, their agents and their debt collectors are inhuman scum.

[robblok]

All those people saying that the debt is gone, that might be the case under certain rules. Like no contact ect but if there was contact and replied then things are different. Best to let a lawyer look at it.

 

But suppose its not legal you still need to go to court, and if you have no lawyer the judge wont help you. Question is will a lawyer and all the hassle be cheaper then 22k. I doubt it. But again your life your choice.

[Kenny202]

1 hour ago, Ohyesuare said:

Thai commercial law stipulates that debt has to be collected in a period of maximum 2 years. Sounds like as you correctly assumed, the company wrote off the debt and possibly sold off a database of non-payees cheap to some scummy collection agency whose job is to scare/make threats in order to collect whatever they can. Not saying it was right for your GF to not pay off her debt but it's too late for that now and paying some scummy company who buys debt for pennies on the dollar isn't really gonna make things right.

 

I am not a lawyer or anything close to one so do not take anything I said as fact and do your own clarifications. 

She has since confirmed from the collection company they did buy the debt and as you say they would have bought a 30000 debt for around 5000 baht, if it works similar to back home. Are you sure about the 2 year thing? If so its been at least 6 years. She does actually want to do the right thing and pay them and I would agree if the debt was still with the original lender but I just don't see any benefit in paying these people apart from maybe a clearing of her conscience. She seems to think if she pays these people her credit history will be clear in 3 years even though Eon wrote off the loan apparently a few years ago. She says if the loan is paid, albeit late you have a bad credit mark for 3 years. If you completely default and don't pay it's 10 years. Doesn't sound right to me

[RafPinto]

Hide your cash.

 

Probably mom, dad, brothers, ex husband etc have the same problem and once you settle one debt, they invent other ones or take other loans because the "rich" farang is the "life insurance".

Run Forest run...

[Kenny202]

3 minutes ago, robblok said:

All those people saying that the debt is gone, that might be the case under certain rules. Like no contact ect but if there was contact and replied then things are different. Best to let a lawyer look at it.

 

But suppose its not legal you still need to go to court, and if you have no lawyer the judge wont help you. Question is will a lawyer and all the hassle be cheaper then 22k. I doubt it. But again your life your choice.

They say they have sent her letters but to her old workplace which she never received nor do they have the address where she lives with me the last 5 years or would be able to find out. There are no official records of her living at my address / we aren't married. Her mum and dad are dead so no family home address. They have contacted her by phone over the years continually and she has spoken to them but she has never received any formal things nor replied to such. They have never been as insistent or as threatening as they are now.  

[Kenny202]

4 minutes ago, RafPinto said:

Hide your cash.

 

Probably mom, dad, brothers, ex husband etc have the same problem and once you settle one debt, they invent other ones or take other loans because the "rich" farang is the "life insurance".

Run Forest run...

No I've lived with her 5 years and there has never been one instance of dishonesty, gambling issues or even greediness re money as hard as that may be to believe. There was extenuating circumstances for the loans which I wont go into here, but involved her brother taking advantage of her....the only family she has. She has never tried to borrow more money whilst I have been with her and I am sure she has learnt her lesson. She has actually fully paid 3 of the credit cards off herself with her own earnings. But of course I am always on guard with anyone here hence my reluctance to just throw money at Isaan people's problems to just make them all go away. They live such careless irresponsible lives yet never take responsibility for their actions or lack of them. And once you get on that bus you never get off. If I do loan her the money to pay the debt she will pay me back as she has done before. I take care of her and her son in every way financially but I have a policy here I will not pay any ones loans or debts. I have invested enough in charity in Thailand in the past. Not my promprem. 

[Ohyesuare]

17 minutes ago, Kenny202 said:

She has since confirmed from the collection company they did buy the debt and as you say they would have bought a 30000 debt for around 5000 baht, if it works similar to back home. Are you sure about the 2 year thing? If so its been at least 6 years. She does actually want to do the right thing and pay them and I would agree if the debt was still with the original lender but I just don't see any benefit in paying these people apart from maybe a clearing of her conscience. She seems to think if she pays these people her credit history will be clear in 3 years even though Eon wrote off the loan apparently a few years ago. She says if the loan is paid, albeit late you have a bad credit mark for 3 years. If you completely default and don't pay it's 10 years. Doesn't sound right to me

All you have to do is google thailand statute of limitations on debt and multiple reliable sources say that it is 2 years. Very important to know, If she makes any small payment now, she resets that statute which means she is then liable to be sued for it. There is also the Debt Collection Act which offers her many protections against unscrupulos practices from debt collectors trying to harass her and severely limits them in how they can go about it with harsh consequences for them if they violate it. http://report.dopa.go.th/laws/document/2/231.pdf I suggest reading for yourself like I suggested earlier rather than taking the word of random strangers on this forum.

Edited November 24, 2021 by Ohyesuare

[KhunLA]

15 minutes ago, robblok said:

All those people saying that the debt is gone, that might be the case under certain rules. Like no contact ect but if there was contact and replied then things are different. Best to let a lawyer look at it.

 

But suppose its not legal you still need to go to court, and if you have no lawyer the judge wont help you. Question is will a lawyer and all the hassle be cheaper then 22k. I doubt it. But again your life your choice.

OP is referring to CC debt, and as already pointed out, the debt is null & void after a certain period or non payment & attempt at collection.   

 

Simply a scare tactic.  At worse, a ding on her credit report whish is probably already there.  They / dings also drop off after a certain period of time, though one may have to request that to be done.

[RafPinto]

2 minutes ago, Kenny202 said:

No I've lived with her 5 years and there has never been one instance of dishonesty, gambling issues or even greediness re money as hard as that may be to believe. There was extenuating circumstances for the loans which I wont go into here, but involved her brother taking advantage of her....the only family she has. She has never tried to borrow more money whilst I have been with her and I am sure she has learnt her lesson. She has actually fully paid 3 of the credit cards off herself with her own earnings. But of course I am always on guard with anyone here hence my reluctance to just throw money at Isaan people's problems to just make them all go away. They live such careless irresponsible lives yet never take responsibility for their actions or lack of them. And once you get on that bus you never get off. If I do loan her the money to pay the debt she will pay me back as she has done before. I take care of her and her son in every way financially but I have a policy here I will not pay any ones loans or debts. I have invested enough in charity in Thailand in the past. Not my promprem. 

Sorry to say but how can she get 3 or 4 or more "credit cards" with no job, nothing in her name.

My ex GF at least had no CC, just a debit card.

[BritManToo]

26 minutes ago, Kenny202 said:

She says if the loan is paid, albeit late you have a bad credit mark for 3 years. If you completely default and don't pay it's 10 years. Doesn't sound right to me

10 years is the old rules, it was reduced from 10 years to 5 years 8 years ago.

[BritManToo]

23 minutes ago, Kenny202 said:

They say they have sent her letters but to her old workplace which she never received nor do they have the address where she lives with me the last 5 years or would be able to find out.

Letters asking for money are always sent to the person's house book address.

[robblok]

24 minutes ago, Kenny202 said:

They say they have sent her letters but to her old workplace which she never received nor do they have the address where she lives with me the last 5 years or would be able to find out. There are no official records of her living at my address / we aren't married. Her mum and dad are dead so no family home address. They have contacted her by phone over the years continually and she has spoken to them but she has never received any formal things nor replied to such. They have never been as insistent or as threatening as they are now.  

So there was contact.. that is important. Anyway your gamble, they might or might not go to court and if they do and you have no lawyer you will lose. If you don't show up you lose. Anyway as i said listen to whoever you like but IMHO find a lawyer as having been in contact is a thing. 

[robblok]

14 minutes ago, KhunLA said:

OP is referring to CC debt, and as already pointed out, the debt is null & void after a certain period or non payment & attempt at collection.   

 

Simply a scare tactic.  At worse, a ding on her credit report whish is probably already there.  They / dings also drop off after a certain period of time, though one may have to request that to be done.

No its not about non payment its about contact and acknowledgement. Anyway a lawyer knows better then you and me. Id let them look at it. But then again a lawyer might be more expensive. 

[robblok]

18 minutes ago, KhunLA said:

OP is referring to CC debt, and as already pointed out, the debt is null & void after a certain period or non payment & attempt at collection.   

 

Simply a scare tactic.  At worse, a ding on her credit report whish is probably already there.  They / dings also drop off after a certain period of time, though one may have to request that to be done.

You might be right, i looked the two years up. But if any payment or agreement has been made that limit goes away. There is a nice article in the BKK post about this. But if they still take it to court you still have to appear. Not sure if they would push it that far.

 

[KhunLA]

7 minutes ago, robblok said:

No its not about non payment its about contact and acknowledgement. Anyway a lawyer knows better then you and me. Id let them look at it. But then again a lawyer might be more expensive. 

Myself & wife have been down that road, and doubtful they waste more time & money pursuing a debt they legally can't recover.  I'd just ignore their letters & phone calls if receiving.  Actually tell them to 'hold on' and set the phone down, costing them more money.  They'll get the hint, if ignoring you pointing out their legal avenue has expired.

[atpeace]

45 minutes ago, Ohyesuare said:

All you have to do is google thailand statute of limitations on debt and multiple reliable sources say that it is 2 years. Very important to know, If she makes any small payment now, she resets that statute which means she is then liable to be sued for it. There is also the Debt Collection Act which offers her many protections against unscrupulos practices from debt collectors trying to harass her and severely limits them in how they can go about it with harsh consequences for them if they violate it. http://report.dopa.go.th/laws/document/2/231.pdf I suggest reading for yourself like I suggested earlier rather than taking the word of random strangers on this forum.

Sounds to good to be true.  Off too google.

[ChaiyaTH]

Debts are often sold to third companies after payments fail for years at an end, often the original owed company then receives 50% or so right away from the buying company. 

 

Companies buying these debts do not forget and specialize in collecting. That it has been quiet for 5 years says nothing, as long they remind you within law time frames it continues.

 

Anyway, the Thais and their poor repayments is the reason we have such high interest here, its rewarding for companies having debtors pay slow and late too.

Edited November 24, 2021 by ChaiyaTH

[Rimmer]

Baiting post and replies removed

[ChaiyaTH]

Just now, atpeace said:

Sounds to good to be true.  Off too google.

Statue of limitations is not relevant to such debts, as far I am aware. Certainly not as long its an active case. 

[ChaiyaTH]

34 minutes ago, robblok said:

So there was contact.. that is important. Anyway your gamble, they might or might not go to court and if they do and you have no lawyer you will lose. If you don't show up you lose. Anyway as i said listen to whoever you like but IMHO find a lawyer as having been in contact is a thing. 

Getting a lawyer while failing to repay 30k over 6 years… Right.

 

Even they had one they still lose.

Edited November 24, 2021 by ChaiyaTH

[atpeace]

7 minutes ago, ChaiyaTH said:

Statue of limitations is not relevant to such debts, as far I am aware. Certainly not as long its an active case. 

It definitely does not apply to active cases that were  filed within the 2 year window starting from the date payment was missed.  I assume there is an easy means to file but have no idea.  Without knowing the process and filing procedures, it is hard to make any recommendation.

 

 

Edited November 24, 2021 by atpeace

[ChaiyaTH]

2 minutes ago, atpeace said:

It definitely does not apply to active cases that were  filed within the 2 year window starting from the date payment was missed.  I assume there is an easy means to file but have no idea.  Without knowing the process and filing procedures, it is hard to make any recommendation.

You think those credit guys are unprepared? Interest would be triple or even more if that was applicable, it would mean free money to thais and credit companies go bankrupt.

Edited November 24, 2021 by ChaiyaTH

[KhaoNiaw]

I know a girl in a similar position but she has a job. I think the two-year period being mentioned relates to a claim being made by the lender, not the period that the debt has to be paid off. My friend eventually started receiving regular communications from the company that had purchased her debt, a couple of hundred thousand I think, and in the end it went through court and directly to her company, who informed her how much they had been ordered to take out of her salary. There is a limit though, something like not allowing the take-home salary to go below 20,000 baht/month. Any bonuses and extras are fair game though and get taken.  Without a job or assets though, I guess there's very little the debt collectors can do.
It seems quite common for young Thais to get their first job and immediately receive cards and credit from several different sources, which they max out and just ditch. It can then take a few years to come back and bite them right up into their 30s. 

Edited November 24, 2021 by KhaoNiaw

[Kenny202]

51 minutes ago, RafPinto said:

Sorry to say but how can she get 3 or 4 or more "credit cards" with no job, nothing in her name.

My ex GF at least had no CC, just a debit card.

She did have a job at the time, was 6 or 7 years ago and how they get that many credit cards I have no idea but in my experience not an uncommon thing for Thai women here. I often laugh about guys making judgements about getting an educated wife or one with a government job etc. I have lived with doctors, nurses, teachers.....ex bargirls, farm girls. the only real difference (apart from great  / boring sex and possible psychotic issues) with these sort of socio economic groups is the professionals often have larger debts / higher expectations of money as they have more loan capability.