Collecting Money Owed in Chiang Mai

[Barley]

Hello,

I have a signed loan agreement by a Thai person from Chiang Mai which is overdue. Part of the agreement is a signed copy of their Thai ID card.

 

I really don't like asking people to pay money owed to me, and I will also be leaving to Europe for the summer in a few days.

 

So I would like to hand this matter over to someone to do the collection for me. I have the original loan agreement signed in duplicate, so I could give someone one set and still have an original for myself.

 

What are my options?

 

Lawyer, official or unofficial collection agency, or going to the police directly?

 

Can you give me some hints what I should do, with as little hassle for me as possible? These things always upset me a lot and make me have sleep bad.

 

Looking forward to your advice.

[VyacheslavKHV]

Civil case, get a lawyer, give lawyer POA and go to court. 

[blackcab]

How much is the loan for?

[Mac Mickmanus]

First thing that you should do is to contact the person to see whether they have the money or not 

[Barley]

5 minutes ago, blackcab said:

How much is the loan for?

Over one million baht

[timendres]

1 hour ago, Barley said:

Over one million baht

Wow! That is a level of trust I have never mustered.

 

Any "bill collection" agency, that purchases the outstanding amount, is likely to give you 10% or less on that amount. So your best option is to hire someone to try and collect, paying them a rate for their efforts. Honestly, you are likely going to be writing this loan off. So, were it me, and as suggested by @Mac Mickmanus I would simply stay in contact with the person, and encourage them to pay as much as they can going forward. That is assuming your current "relationship" is amicable. If not, then hiring someone to nag them may result in some payment, but your leverage is minimal.

[OneMoreFarang]

3 hours ago, Barley said:

a Thai person

And then there is the question if this is a nobody or maybe someone with some influence, or someone who has no problem using violence.

Because if you make a Thai person look bad because you want your money back then it might happen that they get aggressive towards you. Maybe you get shot, maybe your life in Thailand will get difficult because of problems from immigration, etc.

I know it's not fair, but think twice what you want to do and possible consequences. And getting none of your money back is not the worst possible consequence. 

[Onerak]

2 hours ago, Barley said:

Over one million baht

The person must your GF. Otherwise nobody would give a Thai person one million baht. Have you thought how the person is going to pay? Does he have a job and a high incomes? I am still assuming the person is your GF. If GF, forget it. Think  about it as a donation to for her heavenly pleasure. 

[anyone]

1 hour ago, OneMoreFarang said:

And then there is the question if this is a nobody or maybe someone with some influence, or someone who has no problem using violence.

Because if you make a Thai person look bad because you want your money back then it might happen that they get aggressive towards you. Maybe you get shot, maybe your life in Thailand will get difficult because of problems from immigration, etc.

I know it's not fair, but think twice what you want to do and possible consequences. And getting none of your money back is not the worst possible consequence. 

Have you received permission from Mr. Somchai to breathe?????

[blackcab]

1. Did you receive any security for the loan?

 

2. What assets does the borrower have?

 

3. What regular income does the borrower have?

[Berkshire]

10 hours ago, Barley said:

Lawyer, official or unofficial collection agency, or going to the police directly?

Clearly a civil case, the police will not get involved.  Who drafted the contract?  Was the contract in English?  I always thought contracts had to be in Thai to be enforceable in Thailand.  Get a lawyer, preferably the one who help you draft the contract.

 

10 hours ago, Barley said:

Can you give me some hints what I should do, with as little hassle for me as possible? These things always upset me a lot and make me have sleep bad.

Simple solution for future ref:  Don't make million baht loans!!!!!!

[Bill97]

11 hours ago, Barley said:

Can you give me some hints what I should do, with as little hassle for me as possible? These things always upset me a lot and make me have sleep bad.

Write it off.  Forget about it.

 

Next time somebody wants to borrow remember you are not a bank, you are not in the business of lending money.

[CMBob]

If you determine the debtor is clearly collectible, go ahead and pursue it [being aware that the best you'll do is what's owed less the cost (and stress) to get there]; however, if the debtor isn't collectible, pursuing it legally is pure folly.

[worgeordie]

12 hours ago, Barley said:

I really don't like asking people to pay money owed to me

Your joking...maybe the one you lent the money to ,Knew that,

If you don't ask you will never get repaid ,even then you will

have a job getting it ,that's why I never lend money to anyone, 

that's what Banks and loan sharks are for.

 

I do hope you manage to be repaid , otherwise it's going to be

a very  expensive laning lesson

regards Worgeordie

[Banana7]

When loaning money, do it like a professional. If you don't, prepare for 100% loss of the money and the loss of a friend or associate. Loaning money to a friend is a fast way to lose friends.

 

When a Thai banker or credit company loans money, 90% of the time, they want a co-signer. Get a co-signer always!

 

Next, google 4C (character, collateral, capacity, capital) of credit to understand what should be done before loaning money.

 

When collecting a loan on default, you need to determine if it is recoverable or not. Can you find the person and meet personally with them? Is it recoverable?

 

 

Edited March 22, 2022 by Banana7

[JeffersLos]

1m baht.

 

Can this person get you taken care of for 500k?

 

Yes, they can. 

 

A lesson learned. 

[bojo]

On 3/21/2022 at 4:42 PM, Barley said:

Can you give me some hints what I should do, with as little hassle for me as possible?

Involving third parties in Thailand invariably gets messy and can easily backfire IMO. Shelling out for lawyers and courts will probably fail as well. ....................My approach would be playing the long game, accepting that a payment plan (direct debit of sorts preferably) that the debtor can reasonably afford is better than putting them in a corner with pressure. Ask them what can they afford to pay monthly, let them tell you and go from there.................................................... Accept that you're going to have to have a conversation with them, get your head around that (take a friend with you if you're concerned).................................................