Thailand - Debt Collection Act Standardises Mechanisms For Debt Collection.
Legal News & Analysis - Asia Pacific - Thailand - Insolvency & Restructuring - Regulatory & Compliance
4 December, 2019
Prior to 2015, there were various problems with the practice of debt collection in Thailand. There were instances of collectors using physical violence, abusive language and public shaming against the debtors to push for repayment of debt. In an effort to curtail these practices, the Debt Collection Act (“the Act”) was passed in 2015 to provide for a fair and standardised collection mechanism.
The intention of the Act is to regulate the way creditors collect debts and applies to all debt collectors, from individual creditors, business operators and financial institutions. Debt collectors are defined as a creditor who makes a loan to a debtor, while debtor refers to a natural person and a natural person surety. The definition of debt collectors is also extended to a lawyer authorised by a creditor, debt collector and debt collection business and a debt collection business. Lawyers who collect debts on behalf of their clients are not considered as debt collectors.
For more information, please contact:
Threenuch Bunruangthaworn, Partner, ZICO Law (Thailand) Limited (a member of ZICO Law)