Thailand Elite Card Closes Down To The Tunes Of 2.5 Billion Baht

[sholaisen]

It's not that easy, fortunately... There is an other clause in the contract which you have left out regarding refund in case of cancellation... I will not post the entire contract here as I do not want to "get in trouble" with TPC...

I think that we will see the few people who purchased it at 1,000,000 baht back in 2003/2004 (40B/$) getting most of that back, say 900,000 baht after legal fees (29.8/$) for a tidy profit of about $5,000 US or close to 25% on their original investment over 7 years. Better than a T bill or savings account! During that time, they got some great free services, a few rounds of golf, ride from the airport, and all sorts of goodies. Wish my solid safe AAA+ T Bill from a country with unsustainable debt offered those services.

i really don't see this happening. They always had a disclaimer stating that the program can be canceled at any time. Why would they grant a refund in this case?

I would think any decent government lawyer might easily end up with him saying, "Sorry, no refund"

The Member agrees that the Company may from time to time amend or supplement the Individual Membership Agreement.

Termination due to government policies

In case there is any order, rule, regulation or law announced by any related government authority which has an impact on the business operation of the Company to the effect that the Company is unable to continue its business or perform its operations as usual, the Company shall be entitled to terminate the Membership by giving an advance written notice to the Member.

Rights and duties after termination

The Company reserves the rights to modify, cancel and/or prescribe further limitation on any of the Privileges without prior notice.

Edited April 27, 2011 by sholaisen

[Buchholz]

It's not that easy, fortunately... There is an other clause in the contract which you have left out regarding refund in case of cancellation... I will not post the entire contract here as I do not want to "get in trouble" with TPC...

If you say so, but still, I wouldn't think lawyers would have much trouble making the terms described above to work in their favor of minimizing or even eliminating refunds.

It's written like many Terms and Conditions. It favors the writer of it tremendously.

Throw in on top of that the Thai bureaucracy and its infamous pace of proceedings and I would think it almost not near the effort of going after it.

.

Edited April 27, 2011 by Buchholz

[Abrak]

Oh stop crying over it. If the scheme comes to an end, they will either decide we are so important that we should receive compensation or that it doesnt matter and we wont. It is only Bt2.5bn in the first place so it is not a big deal.

[Crushdepth]

Giving residency and landownership rights for 1 million baht would be the same as inviting every criminal to come live in Thailand. I understand why so many honest people would have liked these benefits. Unfortunately this is a bit naiv...

They could do standard visa-type checks to see if you are a criminal first. Anyway its not going to happen anytime in the forseeable future. Foreigners...urgh...

[euroflash]

Now would be the right time for Thaksin to offer all 2,500 members visa and other privileges in whatever country he is staying in at the moment

[JimSiam]

Seems they spent a lot of the money everywhere.

http://www.boatshed.com/cooksonfarr_43-boat-67630.html

[p_brownstone]

Do we really have to go through this nonsense again?

I am a long term critic of the whole rationale behind this "Elite Card" nonsense - to me, a very clear Ponzi Scam from day one - and those who initiated and continued to promote it ........... but surely – enough is enough.

Who in this life has not made a dumb Investment decision now and again?

So some people with money to spare decided that the Elite Card program offered them potentially significant benefits and so invested what was – relative to their financial situation – trivial Funds.

However like many Investment vehicles the reality turned out to be somewhat different to expectations.

So they move on.

To my mind there is far too much a sense of gloating - and jealously - in many Posts on this subject.

Patrick

[bhakta]

I have a few friends who are members and they will not be happy to lose their golf privileges!

[Tokay]

Another enormous FAIL in Thailand? Never saw that coming.

Curious as to how much the current card holders will actually be "compensated" for.

Edited April 27, 2011 by Tokay

[Tokay]

Giving residency and landownership rights for 1 million baht would be the same as inviting every criminal to come live in Thailand. I understand why so many honest people would have liked these benefits. Unfortunately this is a bit naiv...

In my case, coming and going quite frequently was the incentive. Which includes the visa privileges...

Did they also get land ownership?

What is to happen with the chanot now?

[Crushdepth]

To my mind there is far too much a sense of gloating - and jealously - in many Posts on this subject.

It's more a bit of black humour, a case of 'we told you so' and a reminder that foreigners can never, ever, trust a Thai government. I think Suthep summarised the prevailing attitude when he said "I don't respect farangs".

[Arkady]

The whole thing was sleazy and typical of Thaksin. Get a bright idea in the shower and announce it the next day without doing any research to see if it is viable. If it doesn't work out, leave the taxpayer and the suckers who bought into it to pick up the bill. There is arguably a need for a real scheme to attract well healed foreigners but key benefits, like land ownership and long term visas, have to be properly legislated, not just band aids that fall off.

Whatever you think about the Malaysia My Second Home scheme, it provides genuine benefits with the force of law behind them, including land ownership, renewable 10 year visas, the right to import of a tax free car. There are financial hurdles but they are in the form of money you have to bring into the country, not a US$30k fee. Thailand could do well to look seriously at something like this without, of course, using it as a excuse to exclude less well healed foreigners. Unfortunately , politicians would never agree to amending the Land Code and the probably the same applies to the visas. Thais have told me with a straight face that it is quite reasonable for the Interior Ministry to stop issuing permanent residence to qualified applicants because there are worried that foreigners will take up too much space and consume too much of Thailand's scarce resources. Yeah right - about 300 well educated, well off foreigners who are already long term residents present a huge threat. Meanwhile, because of lack of any economic planning they have to allow 2 million Burmese to roam the country as illegal labourers in inefficient agreculture and sweatshop industries that should have been phased out 20 years ago.

[drdoom6996]

It will be interesting to see how much compensation members get, and how much arm-twisting they have to do to get it. Not so "elite" now !!

Sounds like they got what they are going to get. And we know who the one most elite member is/was.

[drdoom6996]

To my mind there is far too much a sense of gloating - and jealously - in many Posts on this subject.

It's more a bit of black humour, a case of 'we told you so' and a reminder that foreigners can never, ever, trust a Thai government. I think Suthep summarised the prevailing attitude when he said "I don't respect farangs".

Very well said

[Crushdepth]

I'm optimistic there will be a reasonable degree of compensation - obviously not 100%, otherwise they run the risk of alienating the 'high value' people they were - allegedly - trying to encourage.

Then again, dam_n those foreign bastards.

[swillowbee]

... several friends, and seasoned travellers to Thailand, bought-in knowing it was a risk ... Suvarnabhumi Airport, Airport Link, Hopewell Project, BTS, Thai Film Festival, for God's sake the Asia Currency Crisis! ... all fine examples of incompetence and interminable corruption ... what more does one need to see?

... so, it's demise can really surprise no one.

... what I will find interesting is how the THB 2.5 billion approved by the government to wind-down the company is dispensed ... now that could be a mad rush by the Thai management for a last taste of the graft ... any bets on what is left for compensating foreigners after the company wind-down?

Edited April 27, 2011 by swillowbee

[rubl]

Do we really have to go through this nonsense again?

... middle part removed ...

To my mind there is far too much a sense of gloating - and jealously - in many Posts on this subject.

Patrick

Correct observation. Mind you I would have loved to be able to afford the loss of THB 1M

[Pib]

I want say unbelievable the govt is not offering some compensation/money back upfront like a prorated deal (but I have to remember TIT). That is, you bought the card X years ago, a person's average life expectancy is X years, so here is the prorated refund. But no, when it comes to getting money back from a Thai company and apparently the Thai govt, you have to fight for it. TIT.

[exbelg]

extreme overpriced 1 million baht membership drove not enough members, so thai logic = increase even more the price ... lol

what about all those VIP members that got a free membership, will they be able to claim their 1.000.000 baht ?

[Solditallandmovedhere]

Do we really have to go through this nonsense again?

I am a long term critic of the whole rationale behind this "Elite Card" nonsense - to me, a very clear Ponzi Scam from day one - and those who initiated and continued to promote it ........... but surely – enough is enough.

Who in this life has not made a dumb Investment decision now and again?

So some people with money to spare decided that the Elite Card program offered them potentially significant benefits and so invested what was – relative to their financial situation – trivial Funds.

However like many Investment vehicles the reality turned out to be somewhat different to expectations.

So they move on.

To my mind there is far too much a sense of gloating - and jealously - in many Posts on this subject.

Patrick

I have to tell you, this isreally funny stuff! A bunch of rich bloated self-righteous egotists having apissing contest to prove that despite the fact that their “I am more importantthan you” membership has been revoked, they will be fine and, at the end of theday, they are still better than you regardless. Sad really! Really sad! Serves all you card holders right. We are in Thailand;don’t you know that is called Karma?

[soulinchiangmai]

I seem to recall that elite card members could own up to 1 rai of land in their own name - if so - what will become of the land ownership rights ??

Can anyone clarify that a) up to 1 rai was obtainable & what will happen to these parcels of land now the elite card scheme will be closing ??

[rubl]

I seem to recall that elite card members could own up to 1 rai of land in their own name - if so - what will become of the land ownership rights ??

Can anyone clarify that a) up to 1 rai was obtainable & what will happen to these parcels of land now the elite card scheme will be closing ??

The one rai was one of the incentives to buy the elite card. Unfortunately it never materialized because it was ruled as being against the law. Consequently no problem now

[soulinchiangmai]

Thanks for the clarification mate.

I was just imagining that if someone had bought 1 rai in a very high priced per sq wah location - and it ended up being lost/confiscated - OUCH !!

Anyway - lets see what hairbrained scheme is next up for us lovely expats to cogitate over :-)

[Crushdepth]

Apparently the Elite Card Mk II gives men over 50 the privilege to marry young Thai women. If you don't have one, you're screwed (or not).

[jfchandler]

I don't understand one detail of the original news report...

Why does the govt. need 2 billion baht to "pay up" registered capital in the company that's essentially going out of business?

Since the company is being shut down, what's the purpose of paying up capital?

Or, is that just a clever way of saying, we've still got some Thai VIPs who haven't finished poking their hands into the Elite Card cookie jar???

[Pib]

Although not mentioned in the news report rumor has it with the Elite Card being canceled that all expats living Thailand will now be able to easily get a Thai bank credit card.

Note: but the card fine print will say it's a secured card, credit limited to 10,000 baht, 20% interest, must be paid in full monthly, and charges using the DCC method. Also, a GPS tracking chip will be placed in your neck in case you try to skip the country without paying any outstanding balance.

[kutjebu]

Forget that.Not when you've money.

Dear Elites

Welcome back to the immigration queue!

[moto77]

The whole thing was sleazy and typical of Thaksin. Get a bright idea in the shower and announce it the next day without doing any research to see if it is viable. If it doesn't work out, leave the taxpayer and the suckers who bought into it to pick up the bill. There is arguably a need for a real scheme to attract well healed foreigners but key benefits, like land ownership and long term visas, have to be properly legislated, not just band aids that fall off.

Whatever you think about the Malaysia My Second Home scheme, it provides genuine benefits with the force of law behind them, including land ownership, renewable 10 year visas, the right to import of a tax free car. There are financial hurdles but they are in the form of money you have to bring into the country, not a US$30k fee. Thailand could do well to look seriously at something like this without, of course, using it as a excuse to exclude less well healed foreigners. Unfortunately , politicians would never agree to amending the Land Code and the probably the same applies to the visas. Thais have told me with a straight face that it is quite reasonable for the Interior Ministry to stop issuing permanent residence to qualified applicants because there are worried that foreigners will take up too much space and consume too much of Thailand's scarce resources. Yeah right - about 300 well educated, well off foreigners who are already long term residents present a huge threat. Meanwhile, because of lack of any economic planning they have to allow 2 million Burmese to roam the country as illegal labourers in inefficient agreculture and sweatshop industries that should have been phased out 20 years ago.

Totally agree with you. This is exactly what Thailand should do instead of allowing so many visa loopholes. Thai officials are not happy with (as many here have already pointed out so don't flame me) the foreigners living in Thailand. BUT the visa loophole situation (no land ownership, no long term visas, etc.) THEY have set up attracts (obviously) only people willing to live a life of rental rooms and bi-monthly visa runs from Pattaya. I am NOT saying that there is anything wrong with such people, but if the Thai government is not happy with what they have, then their visa situation makes no sense at all.

is your average comfortably retired executive going to be interested in this? Nope. But instead of setting up a reasonable retirement scheme, they just "tweak" the old one to limit visa runs, yet still allow for loopholes like Hull. Most things reap what they've sown, and that is true of Thailand's visa programme.

Edited April 27, 2011 by moto77

[gregb]

I want say unbelievable the govt is not offering some compensation/money back upfront like a prorated deal (but I have to remember TIT). That is, you bought the card X years ago, a person's average life expectancy is X years, so here is the prorated refund. But no, when it comes to getting money back from a Thai company and apparently the Thai govt, you have to fight for it. TIT.

I'm guessing also that since there are no class action lawsuits in Thailand that each person who wants their money back will have to sue individually. The court will then have to check to see how many perks were used by that particular individual, and whether or not they received their money's worth. I guess there is some value to that. It means the farangs who bought the card strictly for the visa will probably see a big chunk of their money returned. Meanwhile, those who abused the golf privileges will probably get nothing.

[jfchandler]

I can envision the Thailand Elite refund calculation process... given the way things works around these parts...

OK Mr. Farang.... Let's calculate your refund... You've had the Elite Card for five years, and got one expedited visa... two Thai massages, five airport taxi rides and three rounds of golf... That adds up to... waiting for the calculator to work.... 1.5 million baht...

You owe us 500,000 baht... How would you like to pay?