Legal ramifications for no show

[bannork]

One of my Thai nieces has run up a debt of 140,000 baht with a credit company. They have sent her a summons to attend court next week to discuss repayment.

She's working in a hotel in Phuket and says she can't be bothered to travel so far to attend court!

I try to warn her about the consequences of non appearance but I don't know exactly what will happen.

Presumably the court will find 100% in favour of the credit company if she doesn't appear.

Then what happens?

Will they order her to repay the full amount, in say 30 days?

Will they seize her assets ( none that I know of)?

Will they freeze her bank accounts?

Will they issue an arrest warrant?

If anyone knows of the likely outcome, I would appreciate the advice and consequently warn her 

Thank you 

 

[orchis]

Depends on the judge. Might issue arrest warrant.

[Dante99]

She might be able to get a lawyer to represent her in court at the specified time.

[Pouatchee]

they will do exactly what they do back home. credit cards belong to the multi-national banks. they will order an immediate pay back and when she defaults they will seize whatever assets they can and they will then make real problems for her. only chance she has is to declare bankruptcy

[KhunLA]

CC companies send out summons to appear in court ?

 

I suspect not, though not a lawyer.  How old is the debt, makes a huge difference, and when was last 'official' payment or contact w/CC company.   Also a legal binding aspect of any collection.

 

TIT ... ignore what other countries do.

 

They have a legal debt collection system, and it is time sensitive.  2 yrs for unsecured debt, or was, a few yrs ago, unless changed.

Edited June 5, 2023 by KhunLA

[Celsius]

3 minutes ago, Pouatchee said:

they will do exactly what they do back home. credit cards belong to the multi-national banks. they will order an immediate pay back and when she defaults they will seize whatever assets they can and they will then make real problems for her. only chance she has is to declare bankruptcy

 

Debt in Thailand is forever owed. There is no such thing as bankruptcy per se.

 

My wife knows a girl who owed 500k on her property even tho the bank took the property away. She managed to avoid the debt, but once she met a hunsum foreign man who offered to take her to promised land she soon found out Thailand would not let her go. My guess is that they refused to issue her a police certificate that would satisfy the immigration. Or maybe it was something else like passport.

[BritManToo]

If she has no land/vehicle/savings they will do nothing beyond a letter to her registered address every year for 5 years asking for the money+ credit blacklist. After 5 years the debt will be written off and she can get credit as normal again.

 

It used to be 10 years but they reduced that to 5 years around 3 years back.

Edited June 5, 2023 by BritManToo

[Celsius]

1 minute ago, BritManToo said:

If she has no land/vehicle/savings they will do nothing beyond a letter to her registered address every year for 5 years asking for the money+ credit blacklist. After 5 years the debt will be written off and she can get credit as normal again.

 

Nothing is written off in Thailand LOL

[BritManToo]

Just now, Celsius said:

Nothing is written off in Thailand LOL

My woman owed 500kbht on a car loan (car disappeared).

I used to read the letter every year, the week after the time limit expired she got a 1.5Mbht mortgage loan, no more letters asking for the 500k either.

[Celsius]

3 minutes ago, BritManToo said:

My woman owed 500kbht on a car loan (car disappeared).

I used to read the letter every year, the week after the time limit expired she got a 1.5Mbht mortgage loan, no more letters asking for the 500k either.

That makes no sense. Car disappeared how? Maybe insurance coughed up the money. Or maybe someone "else" paid her loan off.

[norbra]

Any reasonable  excuse,such as busy at this time have employment in another province no money for travel. Have health problem cannot travel ,provided to the court is usually accepted for non appearance.And hearing relisted to a later date ad finitum

Edited June 5, 2023 by norbra

[brianthainess]

CC company could sell the debt to a debt collector company and they will find you eventually, with all kinds of threats, sometimes with gun in hand. just saying.

[digbeth]

if she shows up to negotiate, by getting a loan to consolidate the debt or even just asking the judge, she can get almost half the amount that's usually collection fees and interests knocked off the asking amount.

[DrJoy]

1 hour ago, bannork said:

She's working in a hotel in Phuket and says she can't be bothered to travel so far to attend court

Non Bailable Arrest Warrant will be issued, dont bother!

[norbra]

It might be a good idea for your niece to phone the clerk of courts office,as the staff there handle these "cases" regularly, As they also handle appointments they can offer good advice to your niece re best procedures in her interest.

[JayClay]

1 hour ago, Pouatchee said:

they will do exactly what they do back home. credit cards belong to the multi-national banks. they will order an immediate pay back and when she defaults they will seize whatever assets they can

Where is "back home"?

 

In the UK, at least, credit cards are unsecured debt and the multi-national banks that issue them have zero right to seize any assets if the debt isn't repaid.

[BritManToo]

49 minutes ago, digbeth said:

if she shows up to negotiate, by getting a loan to consolidate the debt or even just asking the judge, she can get almost half the amount that's usually collection fees and interests knocked off the asking amount.

But that would change an unsecured loan (no penalty if you default), into a secured loan.

[dddave]

1 hour ago, BritManToo said:

If she has no land/vehicle/savings they will do nothing beyond a letter to her registered address every year for 5 years asking for the money+ credit blacklist. After 5 years the debt will be written off and she can get credit as normal again.

 

It used to be 10 years but they reduced that to 5 years around 3 years back.

The way they seem to get around that 5 year expiration is the lender sells that debt to a collection agency just before expiration. The lender can they clear the debt from their books but the collection agency now owns the right to collect the debt and the expiration is nullified.  It's a big loophole in the law.

[Pouatchee]

10 minutes ago, JayClay said:

Where is "back home"?

 

In the UK, at least, credit cards are unsecured debt and the multi-national banks that issue them have zero right to seize any assets if the debt isn't repaid.

Seizure of money from your bank account – many Canadian banks and financial institutions include a right of offset with their credit cards. This means they can seize money you have saved with them to go towards repaying your overdue debts, up to the full amount including interest and fees.

 

this is from my wonderful country... sucks to be canadian

 

[JayClay]

3 minutes ago, Pouatchee said:

Seizure of money from your bank account – many Canadian banks and financial institutions include a right of offset with their credit cards. This means they can seize money you have saved with them to go towards repaying your overdue debts, up to the full amount including interest and fees.

 

this is from my wonderful country... sucks to be canadian

 

Well that's not quite what you originally claimed... they can apparently only use money that you have saved with them in another account. To be fair, I think this practice is indeed common in the UK. But they can't cone after any assets outside their own organisation. 

Edited June 5, 2023 by JayClay

[Anythingleft?]

Let's be honest, whatever you may find out on this forum whether it be right or wrong in the eyes of Thai law you're niece is on a path of self destruction and I very much doubt that she will listen to a word that you say.

 

They will listen to friends above all else and to damn with the outcomes..

 

I wish you the very best if you try to make any Thai see sense in these matters.........

[KhunLA]

I see some replies forget ... TIT

 

Little info in OP for anyone to advise.

... secured or unsecured loans, or CC

... how long ago was last payment/contact with debt holder

 

Those 2 have to be answered for any useful advice.

BritManToo seems to be the only one with knowledge, aside from myself, though mine longer than 5 yrs ago, and 'time limit to collect' was 2 yrs. I think

 

They'll send letters & phone  (if having ph#), but unless 'officially' summoned to court, by the court, not much to worry about, except current credit rating.

[bannork]

5 minutes ago, KhunLA said:

I see some replies forget ... TIT

 

Little info in OP for anyone to advise.

... secured or unsecured loans, or CC

... how long ago was last payment/contact with debt holder

 

Those 2 have to be answered for any useful advice.

BritManToo seems to be the only one with knowledge, aside from myself, though mine longer than 5 yrs ago, and 'time limit to collect' was 2 yrs. I think

 

They'll send letters & phone  (if having ph#), but unless 'officially' summoned to court, by the court, not much to worry about, except current credit rating.

It w is an unsecured loan. She has never paid any instalments as far as I know.she says she can't remember. She has been officially summoned to the Civil Court, the official letter was sent 2 months

ago and the date is later this week

[KhunLA]

20 minutes ago, bannork said:

It w is an unsecured loan. She has never paid any instalments as far as I know.she says she can't remember. She has been officially summoned to the Civil Court, the official letter was sent 2 months

ago and the date is later this week

That's a bit more info, though with this statement:

"She's working in a hotel in Phuket and says she can't be bothered to travel so far to attend court!"

 

Any advice would be irrelevant.

 

"Presumably the court will find 100% in favour of the credit company if she doesn't appear."  ... that's a given.

 

Unknown if they can garnish her income, if they can even get access to it.  Guessing she doesn't have assets, and since in civil court, I wouldn't worry too much myself.  Don't know if they do the 'debtor prison' thing here, though wouldn't be surprised.

 

Not much you can assist with, since she seems to not care.  Would think any negotiation for lower (half maybe) debt, would be a bit harder after court judgement ... or not.   They really would rather get paid something, and if sold to agency, they might have picked it up on the cheap, and 50% might still be a profit for them.   Legal fee just upped their overhead, so maybe not.

 

My experience, debt collection was beyond 'time limit', and once pointed out to the debt collector, (obviously court not involved) that they had no legal standing, the letters & phone calls ceased to the debtor.   Actually debtor been offered & approved for CCs since.

Edited June 5, 2023 by KhunLA

[bannork]

I think she might find it hard to take the time off work, it's a long way there and back. I said pay them 5000 baht and offer to pay them that per month. Keep them off your back.

Thanks for all the advice folks, it seems there's a variety of opinions as to what happens next if she doesn't turn up!

[Pouatchee]

2 hours ago, JayClay said:

Well that's not quite what you originally claimed... they can apparently only use money that you have saved with them in another account. To be fair, I think this practice is indeed common in the UK. But they can't cone after any assets outside their own organisation. 

I double checked... you should be happy i actually took the time to correct my initial statement

[KhunLA]

2 hours ago, bannork said:

It w is an unsecured loan. She has never paid any instalments as far as I know.she says she can't remember. She has been officially summoned to the Civil Court, the official letter was sent 2 months

ago and the date is later this week

I'm guessing, but is this a loan from a private individual, as I can't see how any bank/CC would let her extend 140k of borrowing, without cutting her off after a few missed payments.

 

Either way, she obviously going to ignore the notice, and should tell you everything you need to know, in case you had thoughts of helping her out.

[Liverpool Lou]

6 hours ago, Celsius said:

They will go after the family and that may include a Farang mug.

Nonsense.   Unless they were guarantors.

[Liverpool Lou]

6 hours ago, KhunLA said:

CC companies send out summons to appear in court ?

Asbolutely right, they do not.

[Celsius]

4 minutes ago, Liverpool Lou said:

Nonsense.   Unless they were guarantors.

 

I understand you live long time in Thailand and are an expert in everything, but I did not mean they will go after their assets. The banks will harass close and distant families with endless calls. If this is something she wants to do to her family speaks volumes about her character.