CC unpaid can you leave the country?

[fletchsmile]

On 2/26/2017 at 11:50 PM, JHolmesJr said:

Credit card companies are not doing anyone a favour by issuing them with a credit card. They earn a lot of money from this. As such, they make provisions in their balance sheets for bad debts, that are rather endemic in this trade.

...

Yes they make specific provisions after defaults as well as general provisions based on a % of the portfolios before default. Of course these costs are effectively passed onto consumers one way or another. 

 

Also don't forget that they have score cards which affect whether they will issue a CC in the first place. These look at many factors/ variables. Month on Books (MOB) is a key one. And of course there's good reason why they differentiate foreigners as a variable.

 

The results of foreigners simply absconding therefore just pass on more costs to other bank users one way or another, and make it more difficult for foreigners to get CC one way or another.

 

BTW Passing on the costs may be direct to the product or indirect to other products or customer segments outside CC. One way or another someone pays for it.

 

Also intangible ways and will shape people's attitudes to foreigners in general. Imagine also being a senior bank employee with a large level of foreigner defaults. Someone raises the idea of charging a fee on foreign cards in ATMs....

[fletchsmile]

On 2/27/2017 at 10:56 AM, robblok said:

IMHO they factor the risks in per group, and your right its not that if you skip on a debt my rating will go down. But as a group we will be scaled in with a higher risk factor. I have seen in my country for instance certain postal area's don't get credit from sellers because the risk of non payment is higher because as a group they pay worse. Its only logical that banks also factor this in when giving out loans. Both things are factored in.. individual factors and group factors. 

 

Guess we got a difference of opinion here

Yes. They segment their customers in looking at the risk and making decisions particularly on the retail side, eg UHNW, HNW, premier, mass retail etc. 

 

They also have data analytics teams which look at historic default rates to find correlations between variables/ default factors. So they then look at things like income, Thai national/not, whether you own a car, home, employed, self-employed, years of being a customer etc to see if there are correlations to predict future defaults. Some may get thrown out, but they will be analysed. They may shape policies even if they don't make it to final scorecards.

 

All these things help arrive at credit scores.  These factors/ variables are regularly reviewed and affect risk adjusted pricing, whether loans are extended or not. That's just the technical/ analytics side as well. Of course human experience/ judgment also get taken into account in different ways. eg ask a Thai in a senior bank role in credit cards why its difficult to get credit cards for some foreigners and there are definite perceptions without evening needing data / analytics. 

 

It's no coincidence either that the minimum for a foreigner to get a credit card is often 75k a month income compared to 15k minimum for a Thai :)

Edited February 28, 2017 by fletchsmile

[mrfaroukh]

You have one single post in Thai Visa and that you ask us to let you know if you can leave the country without paying your credit card bill. Amazing people here.

[mrfaroukh]

On 2/27/2017 at 5:30 PM, redwinecheese said:

It is called advanced not prepaid because you have deposit money in advance to use it 

If they have work permit and are employed somewhere then probably they don't deposit money to be able to get the credit card.