Family Dynamics: Foolishly Guaranteeing A Car Loan :---(

[Kf6vci]

My friend is in a terrible situation and needs advice. She's Thai, 27 and has a good accounting job. Last Autumn, her older stepsister (who has a good job and her husband is some higher ranking officer in the Thai Army) talked her into guranteeing a car loan for THB 200k.

The sister failed to make any monthly THB 5k payments. Instead, she has been pressurizing my frind. ** I told her to get the car returned, but it appears that the sister's husband used it as collateral in some gambling den (whatever - they refuse to return the car).

Getting my friend to inform the rest of the family about all this was tough; she cried a lot and her evil sister is playing the family card ruthlessly. But time is running out and to me it looks like 1.) my friend will have to bear the cost and ultimately repay all debt. Her salary is THB 16,000 net. 2.) Worse, she will get blacklisted and be unable to get a mortgage etc. and she will lose her AMEX and credit cards. 3.) Maybe she might also lose her job as she is dealing with $ millions, doing the accounting for a multinational corporation. // Where can this girl turn to for help and advice?

My idea is to threaten the sister with the Police. Getting the car returned would wipe out ~ 1/3 of the debt. ** Does anyone know how such cases are handled by the courts?

[GuestHouse]

She should make an appointment to go in and talk face to face with the Loan Company.

At that meeting she should explain the situation and affirm her commitment to meet the debt she has signed for. She should ask for a rescheduling of the payments and for all the documents to be sent to her address so she can commence payment.

If she, or her family has collatoral that should be taken along just incase the loan company ask for security.

I'd advise you to stay clear of this, certainly do not attend the meeting with her as the loan company may put more pressure on her to pay up in the expectation that you are going to help out.

If she's unable to do the above, the inevitable consequence will be that the loan company will foreclose the loan and come looking for your friend, her money and any property she owns.

[GuestHouse]

I’d add, she’s not alone in this mess, I have known several Thais and one expat who have gotten into this problem by underwriting someone else’s loans.

It is a particular problem where family members see one person in their family has gained financial credibility with banks/loan companies and then use ‘this family pressure’ which the OP mentions to get their loans underwritten.

The most financially risky thing anyone can do is to underwrite someone else’s debts – You can loose everything on the back of them not paying.

Also be aware that having a Farang Husband is seen as having wealth and that almost certainly comes with approaches for underwriting loans.

Not underwriting loans and the reasons for not underwriting loans is a conversation that I’d advise anyone who marries a Thai to have with their spouse – This family pressure is enormous and we all need to be aware that it is used in exactly the way the OP mentions.

[~G~]

Have the mother borrow the car, "just for a day" (nobody says no to the mother) and... return it to the loan company

Edited June 22, 2006 by ~G~

[taxin]

My friend is in a terrible situation and needs advice. She's Thai, 27 and has a good accounting job. Last Autumn, her older stepsister (who has a good job and her husband is some higher ranking officer in the Thai Army) talked her into guranteeing a car loan for THB 200k.

The sister failed to make any monthly THB 5k payments. Instead, she has been pressurizing my frind. ** I told her to get the car returned, but it appears that the sister's husband used it as collateral in some gambling den (whatever - they refuse to return the car).

Getting my friend to inform the rest of the family about all this was tough; she cried a lot and her evil sister is playing the family card ruthlessly. But time is running out and to me it looks like 1.) my friend will have to bear the cost and ultimately repay all debt. Her salary is THB 16,000 net. 2.) Worse, she will get blacklisted and be unable to get a mortgage etc. and she will lose her AMEX and credit cards. 3.) Maybe she might also lose her job as she is dealing with $ millions, doing the accounting for a multinational corporation. // Where can this girl turn to for help and advice?

My idea is to threaten the sister with the Police. Getting the car returned would wipe out ~ 1/3 of the debt. ** Does anyone know how such cases are handled by the courts?

I suggest 1 of only 2 things ....

a) Tell her no problem and give he 200K to pay it off.

or...

Tell her you dont have 200K to help her out.

Sounds to me this may well be where it is leading. Otherwise, why would she turn to a farang for help, knowing he has zero knowledge of the Thai law ?

Wouldnt be the 1st story of its kind.

[Heng]

Sounds to me this may well be where it is leading. Otherwise, why would she turn to a farang for help, knowing he has zero knowledge of the Thai law ?

Classic and perfect logic.

[Thaipwriter]

The sister failed to make any monthly THB 5k payments. Instead, she has been pressurizing my frind.

I dont understand this bit, what do you mean?

elaborate please

[thohts]

It may be more wise to do nothing than to do something.

Not only is it not your drama, you most likely don't know the entirety of the situation.

However, knowing the entirety of nothing is easy.

[bino]

Something about the girl's story seems weird to me......

If the car is financed, I imagine that the finance company is holding the "Tabien Lort" - owner registration book, which seems to be standard practice in Thailand.

Would anyone (gambling den, money lender) really take the car as collateral without it??

[Dragonman]

It all sounds like a load of BS to me. Let them take the wicked step sister to Court. Since the husband has a high ranking job in the Army an attachment order should be the first thing any Judge will issue. This is why any Government employee can get a 98% mortgage! 5,000 baht a month is chicken feed. Your friend's defence should be that the husband is in a far better position to pay. Under Thai law he is responsible before any guarantor.

[Kf6vci]

It looks like 9 replies were deleted . This morning, I wanted to copy and paste them... Does anyone know why this happened? Has the Thought Police struck? *** Thanks to all who replied - this is a terrible loss and an insult to those who replied. (This kind of issue might apply to many other Thai families).

[Kf6vci]

The sister failed to make any monthly THB 5k payments. Instead, she has been pressurizing my frind.

I dont understand this bit, what do you mean?

elaborate please

Since last Autumn, the sister has not made any monthly THB 5,000 payments. So the bank has a bad debt with over 180 days of no servicing. Sorry about putting it badly and thank you for asking!

[Chang_paarp]

Double entered Topic?

no conspiracy.

[Axel]

Find the rest here:

http://www.thaivisa.com/forum/index.php?showtopic=73617&hl=

[GuestHouse]

Since last Autumn, the sister has not made any monthly THB 5,000 payments. So the bank has a bad debt with over 180 days of no servicing

So the Bank is owed Bht30K in payments (Less than two months of your friend's salary).

Tell her to go and EXPLAIN THE SITUATION TO THE BANK and ASK THE BANK TO ALLOW HER TO MAKE PAYMENTS HERSELF.

[samran]

It looks like 9 replies were deleted . This morning, I wanted to copy and paste them... Does anyone know why this happened? Has the Thought Police struck? *** Thanks to all who replied - this is a terrible loss and an insult to those who replied. (This kind of issue might apply to many other Thai families).

Double post...topics have been merged....

[bkkharry]

Could be an expensive lesson in life for her, now she should know to never lend money to friends or family.

[GuestHouse]

Could be an expensive lesson in life for her, now she should know to never lend money to friends or family

She hasn't lent money; she's stood as Guarantor something infinitely more risky than lending money.

Lend money and the most you can loose is the money

Stand as a Guarantor and you might wind up loosing every single penny you have, your home and the shirt off your back.

Lend money if you feel like you should.

But

NEVER EVER NOT IN A MILLION BILLION YEARS EVER NEVER CONSIDER SIGNING AS GUARANTOR.

Edited June 23, 2006 by GuestHouse

[Kf6vci]

Here one can see power politics at work: instead of forcing the culprit (evil sister) to contribute to the solution, now the family wants my friend to pay the largest share with the mother etc. coming to the aid of the party. Putting it crudely, the threat was uttered "pay up or you are no longer family". ** I forwarded your posts (some replies vanished temporarily, then re-appeared) and want to say thank you very much!