Lending money to a Thai relative, legal advise?

[GarryP]

19 minutes ago, WALOCK2015 said:

Simply DON'T 

They will not pay it back, they believe it's FARLANG duty to give not lend.

Simply say NO. DON'T HAVE. 

Is there any reason for speaking pidgin?

[ben2talk]

How do I cover myself if I lend money to a Thai relative? Actually how do an Expat cover himself when lending money to a Thai person in Thailand?
 
As an example: My GF's Auntie's roof is in disrepair as the rain season just hit. The rice season has only begun so the coffers are a bit dry. So are the rest of the family. Thy need 100K฿ urgently.
 
If I lend her 100K฿, what can I do legally to ensure I will get my money back? I do not want to be disrespectful, but I need to be legally rooted.
 
In my home country if you borrow/lend money you simply draft a detailed contract, get it stamped by the police, put the bank transfer slips with the contract, and it's a legal set of documents.
 
Thanks for reading and replying.
 

I am not sure how you would go about it. I am sure that it is possible, when people buy cars or other large items, then there must be somebody to guarantee the transaction. That person must have collateral so that if your repayment on the matter, you can simply go to court and collect.

Without using a lawyer, I am not sure how you could do it.

[Rancid]

Just had to take a peak at this topic, hope the OP follows the advice...

[theguyfromanotherforum]

I lent Baht 200,000 to a motorcycle taxi driver I have known for a number of years. I drew up a contract with a repayment schedule, which was also witnessed by a third party. I received every Baht back. Not once was he late with payment. In fact, if he knew I was going to be busy on any payment due date, he repaid in advance.  
 
So many posters paint all Thais with the same brush, when in fact there is no difference with other nationalities. There are good and bad people everywhere. You just need to be careful. 

probably a good idea to not lend any money that you cannot afford to give away... whether it be Thai or farang or anyone... 
 
That said, my family, and extended family have a long track record of re-paying loans... 
 
But ,yes, a chanote usually works if you do not trust... but nothing is fool proof in that you cannot get blood from a stone... if they don't have it now, what is the chance they will have it in the future.

That's right, I agree there is no difference, however, in general it's a bad idea to lend money.

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[oldhippy]

Surely the monks sell special amulets for protection against bad debtors?

 

 

[lungbing]

I recently had a bit of a windfall and instead of putting money in my wife's bank account I bought her gold.  If she had cash people would want to "borrow" it.  Now she can honestly say she has very little money.

 

[ericthai]

On 6/15/2017 at 9:51 PM, garbolino said:

NEVER NEVER lend MONEY to a Thai person.....get them to get a bank loan.....farangs CAN NOT get a bank loan in Thailand thais would be able to get one  on proof of income

Not all Thais  are the same.  I've lent money to a Thai friend several times and always got it back.  Also an expat can get a loan.  I got a loan in my name for my car.  All depends where u work how, how much u make etc. 

[1FinickyOne]

10 hours ago, theguyfromanotherforum said:

 

 

 

 

 

That's right, I agree there is no difference, however, in general it's a bad idea to lend money.

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see that... we can be on different planets, but still be on the same page... lending money is rarely a good idea for the lender unless well within a comfort zone of what might be considered a gift... and for most that might not be more than a beer, a coffee or a noodle soup... 

 

friends, Romans, countrymen, .... if it is not annoying enough to lend money, lending an ear to all the continued excuses of why and when you will get re-paid is too much to deal with.. 

[pgrahmm]

1- It sounds like you don't really know these people....

2- Gf? No actual commitment or marriage ties?

3- It's an urgent rush? How did these people exist before you?

 

Based on your 2nd, very telling paragraph I have to believe you are being used & conned.....The aunt needs a roof - inbetween "rice season" pay days.....THEY - as in the entire family are in dire straits - urgent needs.....RUSH RUSH RUSH IT'S AN EMERGENCY.....

THEY - the whole family need immediate help.....

 

Most established families have resources or credit they can turn to....They grow rice - happens every year & farming communities are set to function this way = crop terms....They help each other this way....If this family can't participate there's a valid/solid reason with history to back up the reasons they're excluded....

 

You might have stumbled into a gambling family or a family that's in hock to a bank or loan sharks....Or a bunch of ne'er do wells sincerely needing your money......

 

Your new best friends.....

 

Are you prepared to do this every rice cycle (if they keep you around)? The emergencies will become bigger & more dire - as will the circle of aunts, uncles, students, nieces, and nephews, broken vehicles & equipment repairs/needs.....

 

Remember - you are disposable income to them....They say thank you - she says goodbye....

 

If there's enough cuties in the family they can keep it going forever.....

 

Just how solid is your relationship? Do you know these people - live with or around them for daily contact? Know what's happening in the family? Treated like part of the family - or as a guest?

 

My wife owned her own townhouse, car, & has her own lines of credit.....All earned by 17+ years working as a manager for a huge Japanese auto manufacturing company - she didn't need me....

 

I think, over the years, we received one SOS phone call from her brother while he was building his house - the next day she went to the bank & sent some money off of her credit line.....She never asked for a thing & I'm guessing she got paid back.....

 

Keep your eyes wide open....You're not really a family member - but you are useable....

 

And disposable.....

 

 

 

[surangw]

call it a gift ( an be ready for the    other  distant family members lining up for the same deal)

[MJKT2014]

On 2017-6-12 at 11:39 PM, douglasspade said:

I do not want to be disrespectful

I would be disrespectful. They are being so to you for asking this. Cut your losses and run.

[douglasspade]

Hi gents, As I have resolved my issue and herewith a few replies:

 

On 2017/06/21 at 3:24 PM, theguyfromanotherforum said:

So many posters paint all Thais with the same brush

Guess that is the 'Western' farang's first problem. And in turn for our poor judgement towards others, everyone gets aggravated. It's so unhealthy.

 

On 2017/06/21 at 4:12 AM, ben2talk said:

That person must have collateral so that if your repayment on the matter, you can simply go to court and collect.

I have heard from the collateral land thing, as well as gold and other valuable things. If you do lend money with this collateral in mind in mind, it's best not to lend, as you already know the person will not be able to pay money back.

Lending money is the risk of the lender, and they should be responsible if they have not done their homework if their monies do not not get returned.

 

On 2017/06/21 at 3:20 PM, Rancid said:

Just had to take a peak at this topic, hope the OP follows the advice...

Unfortunately, not all advice on these forums reflects the truth. But we read it, and judge for ourselves.

 

On 2017/06/22 at 6:39 AM, pgrahmm said:

Keep your eyes wide open....You're not really a family member - but you are useable....

Agreed. Expats are walking-talking ATM machines. I am extremely hard ass about giving out my hard earned cash, hence this Post.

 

On 2017/06/22 at 1:57 PM, surangw said:

call it a gift ( an be ready for the    other  distant family members lining up for the same deal)

100% right! In life there are no money gifts, especially among in-law family. And I do not care if it is disrespectful or not, money borrowed should be paid back in one way or the other. Farang's should not played when it comes to money, since the money is yours, you should lay down the law!

 

So the outcome:

I was advised to get a document called 'Suretyship Agreement' from another Thailand Expat website forum. I  have recently made an acquaintance (through that forum) with an expat lady working for an international construction company as their Thailand side lawyer. She went over the simple process with me and confirmed it will hold up in court as it has been done so many times before. My new (farang proposed) Thai lawyer has also agreed to the process and has showed me through a file of similar cases of these agreements both between Thai and non Thai citizens. Some documentation was even translated to French! He will hold a copy of the documentation for the loan period as an 'extra measure' as may both of the original documents are handed to the parties involved. Once 30 days of the money return date has reached without a callback from any of the parties involved, the documents expire from his office. In any case, you can go to any lawyer with the documentation you have in your hands, it will stand in court.

 

The 'Suretyship Agreement' (after translation) can be found in most larger stationary shops and the document is in Thai writing of course. Take your Thai wife along. It's a single page document. Translated it to English by a translator (I used a friend teaching me Thai). a Set of 2 documents in Thai language, and a set of 2 documents in English language. All documents signed by the parties and 2 witnesses (one a Thai and one a Farang , anybody over age, doesn't have to be a farang or Thai though). Copies of all involved ID cards and Visas. The Lawyer took only 5 minutes to look the documents over, (He reads and speaks English fluently) Was happy, 500฿ for his services.

 

Done deal. You can by law lend money to a Thai and according to all the sources I have researched and investigated - get it paid back if the poop hits the fan. In fact this is almost exactly how we do it in my home country. I was so amazed after so many said it could not be done.

 

Talking  nonsense on this forum may earn you reputation points, but it  doesn't earn you no respect!

 

To everybody who has positively contributed to this thread, I thank you for all your help.

[bill59]

Never lend to family. If they really need it I'll just give it to them. But that doesn't happen often.


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