NCPO endorses fairer debt collection law

[webfact]

Military junta endorses fairer debt collection law



BANGKOK: -- Local citizens who have incurred debts can now rejoice as the National Council for Peace and Order (NCPO) has given approval to a debt collection legislation which will give more protection for debtors against unpleasant or sometimes inhumane debt chasing.

Disathat Hotrakit, the deputy secretary-general of the Council of State, revealed Tuesday that most credit card companies or finance companies and non bank financial institutions have set up debt collection companies.

But he said there is no legislation that provides protection for debtors from the debt collection companies in the country.

But the new legislation approved by the NCPO aims to address the problem.

Under the draft legislation, a committee will be set up to oversee policies regarding debt collection.

Debt collection agencies are forbidden to violate the rights of the individual and also, any efforts to slander the debtor will be strictly forbidden.

In a parallel development, the NCPO will also be reviewing laws in relation to guarantors and mortgages.

This is because historically, loans that have been forfeited by debtors will then be passed on in its entirety to guarantors or mortgaged assets seized which is unfair.

The new act will divide the responsibility for the loans more fairly and equally between debtors and guarantors, he said.

Source: http://englishnews.thaipbs.or.th/military-junta-endorses-fairer-debt-collection-law/


-- Thai PBS 2014-07-16

[terryp]

This is because historically, loans that have been forfeited by debtors will then be passed on in its entirety to guarantors or mortgaged assets seized which is unfair

I thought that was the only point of the guarantor of the loan?

[carstenp]

With the raising of bad loans some banks and credit card company, it will be difficult to get the money back.

[jaltsc]

"But he said there is no legislation that provides protection for debtors from the debt collection companies in the country."

And still there will be no protection against the informal "debt collection companies" that charge exorbitant rates and break limbs in order to collect.

[Pib]

But he said there is no legislation that provides protection for debtors from the debt collection companies in the country.

Also known as the guys who comes to visit you and your family frequently...and they aren't nice.

[belg]

i start to think that some of these people are in the debt collection business and tell yourself : now they can go get the full amount at once + the punters will be able to get a fresh new loan from the shark to buy more useless crap they don't need and cannot repay

long live to create more debt

a loan in thailand is seen as gift

a loan from a shark = extortion

[monkeycountry]

Guarantors are allowed so people who cannot get a loan on their own, can still get a loan. If you remove the responsibility of the guarantor, either in full or in part, then the banks will naturally no longer provide loans to people who cannot get a loan on their own, as they risk losing half or all of the money.

In other words, whatever the new rules are, the banks will simply adjust so the full loan amount is still guaranteed one way or another, or simply not lend money to people who are not credit worthy on their own.

[noitom]

They're slapping together some legislation. Who will be accountable for this legislation in a year in Thailand?

[rickirs]

Yet in the same breathe the Junta wants to make it easier for consumers to take on more debt and borrow funds from the treasury to assist consumers to pay off debt with loan sharks. This is like setting a Alcohlics Anonymous meeting with free beer.

[lostsoul49]

This is because historically, loans that have been forfeited by debtors will then be passed on in its entirety to guarantors or mortgaged assets seized which is unfair

This is great news for my FIL he has been guarantor for many loans from family members and almost every one have defaulted costing him a small fortune. I have seen him reduced to tears and has had to put his house in my wife's name to keep it from being taken by the bank.

He is a real soft touch and can't say no to anyone and one by one his relatives have screwed him over.

Such a bad thing to happen to such a nice guy. I am amazed these people can look him in the face after what they have done to him.