First debt collection law now announced in Royal Gazette



BANGKOK: -- Thailand's first debt-collection law has now been published in the Royal Gazette and will take effect within 180 days after its publication on March 6.

Highlight of the law is that violation of the law is subject to either a 3-5 years imprisonment, and a 300,000-500,000 baht fine, or both.

The main reasons for the promulgation of the law are based on the abundant evidence of the use of abusive, deceptive, and unfair collection practises by many debt collectors that are inappropriate, infringing on human rights and serious physical threats to debtors.

The law defines debt collector as creditor who lends money to debtor while debtor is defined as an individual and debt guarantor.

The law prohibits collector from using abusive, libellous words or from threatening to disclose name of debtor publicly via postcards, and open messages to collect debts.

It also prohibits creditor to collect debts through deceptive method such as claiming to be order of court, state officials or lawyers, or threatening to impound debtor’s assets or salaries.

It also prohibits imposing unfair fees or expenses over official limit, or convincing debtor to pay cheque in spite that debtor is in no position to pay off debts.

Source: http://englishnews.thaipbs.or.th/first-debt-collection-law-now-announced-in-royal-gazette


-- Thai PBS 2015-03-09

Good......better late than never.

But why 180 days to take effect?

It should be immediate, people are suffering from those loan sharks.

I know,'needs must when the devil drives', but many people take out these loans for less than essential reasons.

So borrower to be is protected now ok i wanna borrow 5 kk and pay back out of my estate when i die, well ok maybe i not have enough so please accept 100 baht as full payment tyvm.

i agree brit ,a girl in our village,just up the road from us took out a loan to by a smart phone,she knew the interest rate,and disappeared when she could not pay it,eventually i think her relatives had to pay it off,and lo and behold she was back.

But why 180 days to take effect?

It should be immediate, people are suffering from those loan sharks.

Yes it should, but the wheels of the legislature grind slowly...

This is obviously not just about loan "skarks"

Good......better late than never.

But why 180 days to take effect?

It should be immediate, people are suffering from those loan sharks.

Why? They signed the IOU under gun point?

Well now, life will be more difficult for those who need credit. Collateral will increase and loan terms will be more aggressive and in favor of the money lender. Otherwise, the borrower could try their luck with a bank which almost certainly will not approve the loan application. So this does not really help the borrower and the lender can always change their practice.

The law prohibits collector from using abusive, libellous words or from threatening to disclose name of debtor publicly via postcards

via postcards? really??

"I'm at Hua Hin Beach and wish you were here! BTW, I loaned some money to Somchai."

Edited March 9, 201511 yr by klauskunkel

The law defines debt collector as creditor who lends money to debtor while debtor is defined as an individual and debt guarantor.

I see the loophole in the law already.

Most debt collectors are not the original creditor. If they did not lend the money to the debtor, then under this law, they are not a debt collector and not obliged to follow this law.

Good......better late than never.

But why 180 days to take effect?

It should be immediate, people are suffering from those loan sharks.

Congrats Costas! That's the first time I agree with one of your posts. Especially because I know Greeks are experts when it comes to deal with depths.

The law defines debt collector as creditor who lends money to debtor while debtor is defined as an individual and debt guarantor.

I see the loophole in the law already.

Most debt collectors are not the original creditor. If they did not lend the money to the debtor, then under this law, they are not a debt collector and not obliged to follow this law.

I noticed that same flaw/problem with the definition language used in the ThaiPBS OP report.

The only question is, did ThaiPBS accurately and completely reflect the actual definition language used in the Royal Gazzette. Or, like so many English language Thai news reports posted here, the translations are flawed at best.

Many, many foreigners came here to make new roots and hide from debt collectors of their own country. Does this mean many now have got

to move about in the country to keep one step ahead of them?

My dictionary has the first meaning of "debt" as a "debt of gratitude" Well of course thank you BKKbank very much. The banks will go bust. Except, of course, those with "connections" Maybe Wonga and other Pay Day Loan Sharks should be eyeing up LOS?

Well now, life will be more difficult for those who need credit. Collateral will increase and loan terms will be more aggressive and in favor of the money lender. Otherwise, the borrower could try their luck with a bank which almost certainly will not approve the loan application. So this does not really help the borrower and the lender can always change their practice.

There is always begging.

Many, many foreigners came here to make new roots and hide from debt collectors of their own country. Does this mean many now have got

to move about in the country to keep one step ahead of them?

How do you know? Did they? Not that many Greeks in Thailand!

I like this one from STA International:

Collecting overdue accounts is our lifeblood.!!!!

Most peoples debts are unsecured loans dished out by irresponsible lenders.

i dont see anything about the 20% intrest PER MONTH

Slowly --very slowly, They are trying to change some of the more objectionable things that have been classed as acceptable in Thailand for years,

they going to make lots of mistakes on the way, get ridiculed (especially by TV contributors that don't even live in Thailand) be to slow for some, not thorougher enough for some, not tough enough for others, but try to remember that nothing from any government (red or yellow) was being done about theses things, hotels on peoples beaches, mansions being built on the peoples national parks --& now the money extortioners lenders...etc before.

Good......better late than never.

But why 180 days to take effect?

It should be immediate, people are suffering from those loan sharks.

Yes, 180 days seems a long time but maybe there is legal reasons why.

But I see the next 180 days being even harder on the victims as the loan sharks rack up the pressure.

Another good step from a government that is no friend of criminals and thugs.

Edited March 9, 201511 yr by Basil B

Good......better late than never.

But why 180 days to take effect?

It should be immediate, people are suffering from those loan sharks.

Article actually says "within 180"

could be tomorrow or next week or next month ...

Good......better late than never.

But why 180 days to take effect?

It should be immediate, people are suffering from those loan sharks.

Congrats Costas! That's the first time I agree with one of your posts. Especially because I know Greeks are experts when it comes to deal with depths.

That is Greekness!!

Many, many foreigners came here to make new roots and hide from debt collectors of their own country. Does this mean many now have got

to move about in the country to keep one step ahead of them?

How do you know? Did they? Not that many Greeks in Thailand!

I like this one from STA International:

Collecting overdue accounts is our lifeblood.!!!!

Most peoples debts are unsecured loans dished out by irresponsible lenders.

On the one hand, some here complain of banks not likely to approve loans. On the other, complaints are made against irresponsible lenders dishing out unsecured loans.

So which is which?

Edited March 9, 201511 yr by trogers

Well done! Hopefully it will be a law that is not just for show, but used to protect ordinary Thais against the ruthless criminals in the illegal money lending industry.

Good......better late than never.

But why 180 days to take effect?

It should be immediate, people are suffering from those loan sharks.

Yes, Good. I will leave it at that without the qualifiers and questions that I have no control over.

i dont see anything about the 20% intrest PER MONTH

As i understood it, and i am sure i will be corrected if wrong, that is already illegal and maximum interest rates are already stipulated. The problem here is not the laws themselves but the complete disregard and enforcement of them.

Dunno about the ILLEGAL ones, but some of the LEGAL ones such as AEON and First Choice already charge 28% APR interest on their cardholders' debts.

If that's what they're charging legally, I don't want to know what the ILLEGAL ones are charging.

Edited March 10, 201511 yr by TallGuyJohninBKK

Dunno about the ILLEGAL ones, but some of the LEGAL ones such as AEON and First Choice already charge 28% APR interest on their cardholders' debts.

If that's what they're charging legally, I don't want to know what the ILLEGAL ones are charging.

I suspect the legal limit is 18% per annum. The balance is termed admin charges?

The law defines debt collector as creditor who lends money to debtor while debtor is defined as an individual and debt guarantor.

I see the loophole in the law already.

Most debt collectors are not the original creditor. If they did not lend the money to the debtor, then under this law, they are not a debt collector and not obliged to follow this law.

I noticed that same flaw/problem with the definition language used in the ThaiPBS OP report.

The only question is, did ThaiPBS accurately and completely reflect the actual definition language used in the Royal Gazzette. Or, like so many English language Thai news reports posted here, the translations are flawed at best.

Actually, the debt collector (assume a third party who has bought the debt from a bank and not a loan shark) will have the rights and benefits over the debtor as if they had been the originator. Hence this law will impact them massively. The subsequent impact is that all banks will be raising their interest rates soon sine the price of debt sale to these third party collectors is going to fall.

This law will have no impact to loan sharks anyways because they're already an underground business