Secured Loans/Credit Rating.

[Moonrakers]

Just a quick question

If a secured loan is taken out in Thailand, in this case a loan for a car, and the debtor (the debtor being a Thai national) breaks the agreement resulting in the car being re-possessed. What effect does this have on the debtors credit status?

[wandrinstar]

Most Thais use their property as security for things they cant afford so the Banks take the Land and kick em out generally upcountry.They cant get a passport either

[aurelius]

Recorded in the Thai Credit Bureau for the next 2 years at least - it will affect their future ability to get credit - impact depends on how seriously the next lender views it - the riskier lenders with higher rates will be more tolerant than the lower appetite lenders.

[katabeachbum]

Recorded in the Thai Credit Bureau for the next 2 years at least - it will affect their future ability to get credit - impact depends on how seriously the next lender views it - the riskier lenders with higher rates will be more tolerant than the lower appetite lenders.

yepp, a motorcy shop financing their bikes with 3% a month will likely ignore it or just ask for higher downpayment, while a car dealers financecompany charging 2-3% a year, will not grant finance.

The banks financing property will just smile to you. No risky loans:)

[TerryLH]

"They cant get a passport either"

Not true.

[wandrinstar]

Terry,my friends Wife has been refused last week for owing 25K to T.O.T.Hes back in Germany and wont pay the Bill run up by the Family.Perhaps you can help her.