My wife wants a loan to set up a small business and has a new car (fully insured) that she is will to put up as security.

She called Kasikorn Bank this morning to enquire after I advised her not to fall for the old "You MUST buy insurance from us". The girl on the phone specifically instructed her that as long as the car is fully insured fully comprehensively, she woiuld not need loan insurance.

This makes sense, but when she was sat in the bank, the girl in front of her insisted she needs loan insurance or can not have the loan, despite there is a fully insured car to the value 10 X the loan amount as security.

I told the wife to walk out and try a different bank, but got the same. My brother in law actually worked in Kasikorn in BKK for 2 years and left purely because he was constantly put under extreme pressure to sell insurance on ALL the products and that staff were always being disciplined for failing to sell a policy. They were train to decieve the public.

My question.... Is there a consumer advice association in Thailand? Somewhere my wife can call to get iconfirmed that she is deliberately being mis-sold unnessecary insurance???

I wouldn't mind but the insurace is like 15% of the loan amount and they adsd it to the loan so you are also charged interest on that too.

These banks are crooks.

Thanks in advance.

What was your first clue?

they had this in oz some time ago it was a scam you are not covered the bank is,the insurance pays out the bank but you still owe the money which the insurance company would then recover from you.

Bank loan insurance has nothing to do with the car insurance. It's basically to cover payments if the loaner is ill or unable to work! At least mine was.

Another example I'm aware of, Thai friend went to same bank to open another savings account and bank lady stated up front that's it's now compulsory to have an ATM card. The friend is an astute businessman who is nobody's fool.

Manager walked past and said 'everything OK', friend said no and explained he did not believe it was true that ATM card now compulsory. Manager now embarrassed said 'oh, she's just trying to help you'.

Then it was agreed no ATM card.

Bank lady then gave the customer a blank savings application form and said 'sign here'. Customer said 'I don't sign blank forms for anything and at the same time noticed that the YES box for an ATM card had been ticked.

He walked out and went to another bank.