Thai FM Korn Faces David vs Goliath Battle Over Banks' Fees

[mccw]

How many overseas hollidays do you think the average Thai goes in their life, let alone a couple weeks every year, your air fair alone represents many months wages; you still rich rich rich man wake up.

I don't agree with the transfer fees though because it adversly affects the poor who have to transfer money back to another province to support their families. Also exsesive fees also stifle businesss. However a fee based income is imporant protection against over dips I the economy; so a happy middle way would be ideal.

Good on Korn for taking this on. I note this is another great idea to help the poor and stimulate the ecomony coming out of this government; where as reds have no ideas to speak of; only a load of nonsense spouted in order to seize power. I pray this gov continues for atleast another 2 terms until the opposition grows up and emerges with a real platform of policy to develop the country rather the laughfable if not so tragic excuse for polliticians they currently field

Farang can afford the 150 baht transaction fee. However it is almost 1 day work for Thai people.

Why do you think that way? This is another example of the misconception Thais have that all farang are stinking rich. Some are it's true, but the vast majority are quite the opposite and have to work hard all year round for the chance to take a couple of weeks off in your charming country. You reward them by ripping them off for all they're worth.

You and most other Thais fail to take into account the cost of living in Western countries. In Thailand, you can go to a local restaurant and practically gorge yourself to death for a couple of hundred Baht. The same meal in a Europe will set you back at least 40 Euros which is about 1,600 Baht. It's the same with the cost of housing, energy and water bills, local council taxes, clothing etc., etc.

I note with regard to the foreign withdrawal fees now that the banks have also reduced the amount you can withdraw each time. Bangkok bank used to allow you to withdraw 25,000 Baht in one go, but that's now been cutback to 20,000 B. Other banks won't let you withdraw more than 15,000 Baht, and there's one ATM outside Phuket airport that only allows you to withdraw a maximum 5,000 Baht. Charging 150 B to withdraw that miniscule amount is abhorrent to say the least.

[tomyummer]

Farang can afford the 150 baht transaction fee. However it is almost 1 day work for Thai people.

Maybe, but don't forget, farangs get charged more overall thereby equaling out with Thais. You get 'taxed' by traffic cops, pay more while on a work permit or residency status, hospital fees (private hospitals), tour sites, crooked taxis, tuk tuks, etc....you get the point.

Although I love this proposal to stop extra charges, people must understand that these archaic banks need to still pay for the stupid bank books (never had one since I was a kid over 30 years ago!) and paper trails. Everything still works manually here. Not as much automation as it should be.

[bangon04]

They are an oligopoly and need to be regulated. Pure and simple.

The inter-provincial charges are indeed ridiculous.

Yes the provincial charges are insane but sadly the majority of the punters in this blog would not understand the word 'oligopoly'. Very appropriate and well defined.

For those who have no dictionary:

Oligopoly - a state of limited competition between a small number of producers or sellers (Concise Oxford dictionary, 8th edition)

Just let HSBC and a few others in to set up in Thailand without the petty Thai protectionist laws, and within a year there shouldn't be any more of the "family-owned" Thai banks......

[jackr]

Farang can afford the 150 baht transaction fee. However it is almost 1 day work for Thai people.

Yep, life sucks, eh. That meagre amount actually means nothing to me but the principal stinks. Perhaps when you grow up and stop the ripping and focus on the self, you too can earn a proper wage. In the meantime, I hope banks in my country initiate disproportionate rates for Thai people.

I applaud Mr Korn.

Thai banks:

Cons

Rip-off foreign atm transaction

Rip-off inter-provincial atm rates

Rip-off mortgage rates

Negligible interest rates for foreigners

Prima donna bank clerks jealous of high balance

Pro

Nice totty.

[Milo]

They are an oligopoly and need to be regulated. Pure and simple.

The inter-provincial charges are indeed ridiculous.

Yes the provincial charges are insane but sadly the majority of the punters in this blog would not understand the word 'oligopoly'. Very appropriate and well defined.

For those who have no dictionary:

Oligopoly - a state of limited competition between a small number of producers or sellers (Concise Oxford dictionary, 8th edition)

Just let HSBC and a few others in to set up in Thailand without the petty Thai protectionist laws, and within a year there shouldn't be any more of the "family-owned" Thai banks......

HSBC are as bad as the rest, I asked them about opening a corporate a/c to unify our Thai & UK a/c's, the answer was yes, but if we didn't keep an average 5,000,000b monthly balance in the a/c we'd be penalised 1,200b! Not a huge penalty sum I know, but there's certainly a great many things I could be doing with 5mil other than keeping it in their a/c for them!!

[Milo]

Found their reply, just for the record;

Dear Mr Nadin

Thank you for your interest in opening a corporate account with HSBC in Thailand.

Please provide your company information by complete ALL fields on the below HSBC Corporate Customer Introduction form.

(See attached file: HSBC Corporate Customer Introduction Form 5JAN09.ppt)

Please complete ALL fields and return this HSBC Corporate Customer Introduction Form to this email address for our consideration.

Remark:

The initial deposit requirement is THB50,000 and monthly minimum average balance requirement is THB5 million. A monthly service fee THB1,200 will be levied when the account's monthly minimum average balance falls below THB5 million.

Regarding your questions, For HSBC Thailand please find below brief information. But for HSBC England, please refer direct to HSBC England which your nearest branch or visit website www.hsbc.co.uk

According to the Bank of Thailand's regulations, the restricted for resident Thai baht account please find the detail as follow:

For incoming fund from abroad

1) If the fund remit in THB currency, the purpose of payment is required. If the purpose is for investment, purchase stock or related securities or amount

over than THB5M. the document support is required.

2) If the fund remit in foreign currency, the foreign exchange transaction form is required if the amount is at and above USD20,000.- or equivalent.

For outgoing fund to oversea

1) If the fund remit in THB currency, the supporting documents for overseas obligations ie invoice, debit advice, related etc. are required

2) If the fund remit in foreign currency, the supporting documents for overseas obligations ie invoice, debit advice, related etc. and the foreign exchange transaction form are required for any amount.

Should you have any further query please do not hesitate to contact us at:

- [email protected]; or

- Corporate Customer Centre +66 (0) 2673-7733, from Monday to Friday, 8:30am to 6:00pm

Yours sincerely

Corporate Customer Centre

HSBC Thailand

[JetsetBkk]

<snip>

Good on Korn for taking this on. I note this is another great idea to help the poor and stimulate the ecomony coming out of this government; where as reds have no ideas... <snip>

Oh my giddy aunt! How the heck did you manage to get govt. vs. reds into this?

You need to take a break, stop reading the papers and calm down a bit.

[wintermute]

I just got whacked 400 Baht just to be able to use my account for another year!

They pay f-all interest.

They even charge just to issue a &lt;deleted&gt; ATM card!

Don't even get me started on the 150 Baht foreign card thievery!

AND when I was the victim of card skimming a few years ago, they wouldn't cover the loss (don't tell me they aren't insured). Yes, I switched banks after that, but feel no more secure.

All of this while using depositors money to make themselves huge profits! (loans, investments, etc.).

I refused to take an ATM card (Kasikorn charges 100 THB p.a.)and explained that to the employee: "By not using the card I help saving jobs at Thai banks."

We should all insists on not using local ATM cards, and rather walk into the bank, draw the "lucky number" and enjoy service performed by human beings.

So while you were giving this soapbox monologue about the consumer economics of owning an ATM card did the employee listen with rapt attention or usher you from the counter like I imagine that they would if someone jabbered about nonsense in their face?