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Published on September 24, 2007

The three main guidelines cover contacting debtors, hiring debt-collecting companies and setting up procedures about customers' complaints.

They aim to allow debt-collectors to do their duty in proper ways as many debtors have been threatened harshly, especially by outsource companies, to pay their debts.

However, the BOT emphasised that the new practices did not encourage debtors to avoid creditors or drop their payments.

Any debtors called for debt-payment after 8pm on weekdays and 6pm on weekends can claim invasion of privacy. They can request their privacy rights too if they receive phone calls too frequently.

According to the first guideline, debt-collectors are asked to contact debtors between 8am and 8pm on weekdays and 8am and 6pm on weekends or holidays.

The debt-collectors must identify themselves by properly informing debtors of their names and the objectives of the contact. In face-to-face contact, they must show evidence guaranteeing their authorisation by creditors.

Debt-collectors are also required to ask debtors for payment directly. They cannot contact the debtors' relatives and colleagues, except if they obtain permission or legal rights.

The second guideline requires commercial banks or non-bank companies to take responsibility for their debt-collectors. They should take into account the debt-collectors' backgrounds, financial status and personnel management before signing contracts for hire.

The final guideline requires creditors to set up proper procedures to receive customers' complaints. Their executives are also expected to acknowledge the problems of customers.

Most financial institutions confirm that they deal with customers about

debt-collection by polite methods and appropriate practices.

Kasikornbank normally uses its own staff for debt-collection. Under the bank's guidelines, employees must be polite when dealing with borrowers, particularly premier customers.

The staff address customers politely, remind them of the due date, ask them when it would be convenient to make payment and inform them about payment channels.

The bank also has a delivery service for debt payment.

Borrowers who are premier customers receive privileged service.

Beside the gentle loan-collection methods, they are asked how long payment will be delayed. General customers are told to make immediate payment on the due date.

Debt-collectors of Citi Bank are forbidden manners that are unsuitable in Thai culture, for example telling a teacher to tell his student whose parents are debtors to repay the loan. Debt-collectors are also not allowed to disclose to others personal financial information about the bank's customers.

Dirty tactics such as calling debtors' family members or work colleagues to demand repayment so as to embarrass the debtor are not allowed at the bank.

GE Money Thailand does not allow its debt-collectors to call customers more than five times a day.

KrungThai Card (KTC) also pays attention to the issue in order to maintain its image. It discharges its outsource debt-collection firms immediately after receiving customer complaints about inappropriate action.

Anoma Srisukkasem,

Somruedi     Banchongduang

 The Nation