Call to review 2002 credit law

News > Local News

Published: 19 Jan 2013 at 09.10
Online news: Local News

A rights and liberties protection group on Friday petitioned the Office of the Ombudsman to consider if the 2002 Credit Information Business Act violates the constitution.

Weerasak Uppatham, the group leader, said about 20 million people have been blacklisted by the National Credit Bureau established under the law, making it difficult forthem to obtain loans.

The National Credit Bureau is seen as the main obstacle for all non-performing loan (NPL) borrowers who are blacklisted and cannot start a new life as the Bank of Thailand does not allow commercial banks to extend loans to NPL borrowers.

This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.

Forum

Your comments

faranginkorat
Post : 229
Send message

Discussion 6 : 20 Jan 2013 at 07.166
Post this to my Facebook
We call them "Credit Bureaus".

Borrowing money and not paying it back is the same as stealing, and should be a crime.

When it becomes a constitutional right, nobody will loan any money at all.

Then you will see a dramatically more significant reduction in "domestic circulation of money".

Furthermore, taking money from those who have saved and letting the irresponsible spend it and not pay it back is not good for the economy in the long term. Yes, money needs to circulate, but savings should be invested, not dissipated.
Like dislike 0 people liked / 0 people disliked this comment
bkkfarang1
Post : 326
Send message

Discussion 5 : 19 Jan 2013 at 15.055
Post this to my Facebook
20 million debtors in a country of 80 million, 40% of which are probably children, so getting on for half the working population are debtors. Unbelievable, yes, to give them a second chance is it a good idea, probably not. I had a staff member who borrowed and was allowed to borrow more than monthly salary in total, of course it did not get to one month before she defaulted!
Like dislike 10 people liked / 2 people disliked this comment
robins
Post : 691
Send message

Discussion 4 : 19 Jan 2013 at 12.304
Post this to my Facebook
Wonder if this story is remotely connected to the First Time Car Buyers Program. It's reasonable to expect many of those will be repossessed if they have not been already and the people who bought them blacklisted. Either way, banks must be free to chose who they will lend to and who they won't.
Like dislike 9 people liked / 4 people disliked this comment
chybyk
Post : 116
Send message

Discussion 3 : 19 Jan 2013 at 11.213
Post this to my Facebook
Some of these so-called rights activists sometimes make frivolous and unreasonable statements in the name of human rights just to appear in the news or make themselves relevant. Non performing loans or rather bad loans is the number one reason why an economy is ruined. Some people go to take loans without even thinking of how to repay it. Some people take loans for luxury such as expensive cars, travel,expensive houses etc thus living above their means yet someone is advocating that more loans should be given to such people to be squandered unproductively. When those loans become unpayable, the government will be pressured to offset them.
Like dislike 10 people liked / 3 people disliked this comment
bkk-farang
Post : 2,304
Send message

Discussion 2 : 19 Jan 2013 at 10.372
Post this to my Facebook
I don’t see it in this article but maybe some readers know: Is there a procedure to be removed from the blacklist or maybe set on a gray list for people who used to be blacklisted but now paid their debts?
I think it is good to give people a second chance if they were at some stage in their life unable to pay their loan(s). But this should have limits.
It seems like some people borrow money without thinking because if they would think then they would know they can never repay that money. I don’t see why these people should get another loan to do the same again.
And for emergency cases like hospital bills there should be other solutions
Like dislike 13 people liked / 2 people disliked this comment
bangmodken
Post : 1,305
Send message

Discussion 1 : 19 Jan 2013 at 10.231
Post this to my Facebook
"Domestic money circulation in the economy was partly paralysed because of the bureau’s blacklist of 20 million debtors,Mr Weerasak said".

You haven't paid your previous loans and now you want to borrow more?

"He said the law could violate Sections 43 and 84 of the charter which guarantee people’s rights to make a living and do business in a free and fair manner".

So despite not honouring your commitment to pay off your previous loans,you should be entitled to more?
Like dislike 15 people liked / 3 people disliked this comment

Call to review 2002 credit law | Bangkok Post: news