The Credit Card Club has warned that bad credit-card debts are set to rise, because the Bank of Thailand (BOT) will not extend the period during which companies can collect minimum monthly instalments of 5 per cent of a credit-card balance.

The minimum payment was earlier reduced from 10 per cent and is scheduled to return to that level next April.

The club recently urged the central bank to extend the period for the 5-per-cent rate, in order to help cardholders during the current economic slowdown. It expressed concern that its customers might suffer from lower purchasing power and not be able to service debts. However, BOT governor MR Pridiyathorn Devakula recently turned down the request.

Sukdee Chongmankhong, managing director of Krungsriayudhya Card Co Ltd, said on behalf of the Credit Card Club's president that from now on, card issuers were on their own when it came to overseeing customers during the economic slowdown.

He said the club had not received official notice from the central bank indicating the BOT would not allow reductions in minimum monthly instalments.

Beginning next April, all credit-card firms will have to require a minimum monthly instalment of 10 per cent of total balance amount from their cardholders, a move Sukdee said would certainly cause unpaid debts to rise. But he said he could not estimate how much unpaid debts would actually increase.

"Once we receive an official letter from the central bank refusing an extension of the 5-per-cent minimum monthly payment, all credit-card issuers will have to find ways to help their customers, including sending out letters acknowledging the situation and gradually raising the minimum payment.

"To relieve the impact on customers, we may gradually adjust the minimum instalment to 6 per cent or 7 per cent before raising it to the 10 per cent as required by regulations," said Sukdee.

He said 30-40 per cent of Krungsriayudhya Card's customers paid the 5-per-cent monthly minimum.

The company has 700,000 credit-card accounts.

Card issuers Kasikornbank and Aeon Thana Sinsap (Thailand) said they would not be affected by the central bank's decision, because they already required their cardholders to pay at last 10 per cent a month.