Reform of credit card laws in Thailand
By Jon Fernquest
A
draft
version
of new credit card
laws for
Thailand will be available soon.Today's article provides the details. It begins after the vocabulary.
Also read a previous article about the proposed new laws (Read article).
reform - change to
improve
credit - money that you owe someone (a bill that grows until you pay it off at the end of the month, for example, or many years from now)
credit card - "a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. The issuer of the card grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user." (See Wikipedia)
draft - not in a final form and likely to be changed ร่าง
version - one form of something from a series of different forms (example: the latest version of Microsoft Word is 5.1.1)
credit - money that you owe someone (a bill that grows until you pay it off at the end of the month, for example, or many years from now)
credit card - "a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. The issuer of the card grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user." (See Wikipedia)
draft - not in a final form and likely to be changed ร่าง
version - one form of something from a series of different forms (example: the latest version of Microsoft Word is 5.1.1)
Economics
New credit card, debt laws to better protect consumers
Justice Ministry urges mediation5/07/2010
Parista Yuthamanop
The Finance Ministry expects enactment of a new credit card law to help reduce bankruptcies and improve consumer protection.
Kritsda Udyanin, an adviser to the ministry's Fiscal Policy Office, said the draft credit card bill would prohibit retailers from setting minimum usage amounts or imposing extra charges for using a credit card.
Currently, many outlets refuse to accept cards for purchases below a certain amount, say 500 baht. Some places will impose additional surcharges. The draft law aims at preventing this," he said.
debt
- an amount of money that you owe หนี้
consumer - someone who buys and uses goods and services ผู้บริโภค
urges - asking strongly that something happens
mediation - helping two groups end a dispute and reach an agreement (a compromise) การเจรจาไกล่เกลี่ย
enactment of law - creation of a law
bankruptcy - the end of a company's life, the legal process in which a company is dissolved or reorganised so it can continue business (See Wikipedia)
improve - to make better ทำให้ดีขึ้น
consumer protection - laws that protect consumers from unfair business practices and fraud, also ensuring that truthful information is provided about products to ensure public health and safety (See Wikipedia)
draft - not in a final form and likely to be changed ร่าง
bill - a written document containing a proposal for a new law ญัตติ
prohibit - to not allow; to ban ห้าม
charges - a payment that has to be made for something เงินที่เรียกเก็บ
outlets - stores selling a product, retail outlets ร้านค้า
refuse - say they will not do it
impose - to force someone to accept something กำหนด,บังคับ
surcharges - an additional amount of money that must be paid beyond the normal amount
consumer - someone who buys and uses goods and services ผู้บริโภค
urges - asking strongly that something happens
mediation - helping two groups end a dispute and reach an agreement (a compromise) การเจรจาไกล่เกลี่ย
enactment of law - creation of a law
bankruptcy - the end of a company's life, the legal process in which a company is dissolved or reorganised so it can continue business (See Wikipedia)
improve - to make better ทำให้ดีขึ้น
consumer protection - laws that protect consumers from unfair business practices and fraud, also ensuring that truthful information is provided about products to ensure public health and safety (See Wikipedia)
draft - not in a final form and likely to be changed ร่าง
bill - a written document containing a proposal for a new law ญัตติ
prohibit - to not allow; to ban ห้าม
charges - a payment that has to be made for something เงินที่เรียกเก็บ
outlets - stores selling a product, retail outlets ร้านค้า
refuse - say they will not do it
impose - to force someone to accept something กำหนด,บังคับ
surcharges - an additional amount of money that must be paid beyond the normal amount
Mr Kritsda said the bill also called for retailers to verify the signatures of card users, a practice that is not obligatory under existing regulations.
The statute of limitations for pressing court cases in cases of credit card debt would also be reduced to two years from 10 years. This would actually benefit borrowers by limiting the potential for debt to build up.
verify
- to prove that something is true, or to make certain that something is
correct พิสูจน์ว่าเป็นความจริง
practice - a way of doing something การปฏิบัติ
obligatory - you must do it
regulations - official rules that control the way that things are done ระเบียบปฏิบัติ
statute - a law which has been formally approved and written down รัฐบัญญัติ, พระราชบัญญัติ, ฎหมาย
statute of limitations - the period of time that a criminal case must be brought against someone for breaking the law (after this time no court case is possible)
pressing court cases - making a legal case against someone in a court of law
benefit - to help someone มีประโยชน์ต่อ
potential - possible, what is possible, what could possibly happen ความเป็นไปได้
build up - get bigger and bigger as more and more is added, accumulate
practice - a way of doing something การปฏิบัติ
obligatory - you must do it
regulations - official rules that control the way that things are done ระเบียบปฏิบัติ
statute - a law which has been formally approved and written down รัฐบัญญัติ, พระราชบัญญัติ, ฎหมาย
statute of limitations - the period of time that a criminal case must be brought against someone for breaking the law (after this time no court case is possible)
pressing court cases - making a legal case against someone in a court of law
benefit - to help someone มีประโยชน์ต่อ
potential - possible, what is possible, what could possibly happen ความเป็นไปได้
build up - get bigger and bigger as more and more is added, accumulate
Debtors should understand that a longer period [between default and a court case] could result in their principal and interest continuing to build, them puttingat more risk of bankruptcy," he said.
The bill, approved by the cabinet last month, is now under review by the Council of State.
The law would also give the Bank of Thailand authority to regulate both bank and non-bank card issuers under a single standard.
default
- failure to repay a debt การผิดสัญญา
principal - the amount of a loan, the amount borrowed that must be paid back
interest - payments made for the use of another's money for a period of time
risk - the possibility that something dangerous or unpleasant might happen ความเสี่ยง
putting at risk - putting in a dangerous situation (with possible harm, damage or loss)
bankruptcy - when a business fails and stops operation, when a company does not have enough money to pay their debts and continue in business (See Wikipedia)
authority - power, the power to make decisions, give orders and control events อำนาจ
regulate - to control an activity officially by using rules ควบคุม
card issuers - companies that provide people with credit cards and a credit line as part of their business
credit line - the amount of money that you can borrow from a bank or from your credit card
principal - the amount of a loan, the amount borrowed that must be paid back
interest - payments made for the use of another's money for a period of time
risk - the possibility that something dangerous or unpleasant might happen ความเสี่ยง
putting at risk - putting in a dangerous situation (with possible harm, damage or loss)
bankruptcy - when a business fails and stops operation, when a company does not have enough money to pay their debts and continue in business (See Wikipedia)
authority - power, the power to make decisions, give orders and control events อำนาจ
regulate - to control an activity officially by using rules ควบคุม
card issuers - companies that provide people with credit cards and a credit line as part of their business
credit line - the amount of money that you can borrow from a bank or from your credit card
Mr Kritsda said the ministry was also drafting a debt collection bill to ensure fair treatment for consumers.
The Justice Ministry, meanwhile, plans to promote the mediation process to resolve disputes between lenders and borrowers.
ministry
- a government department dealing with an area of activity กระทรวง
drafting - writing up a document
debt collection - the activity of getting money and assets from borrowers who fail to pay back their money on time, the business is called a "debt collection agency" (See Wikipedia)
ensure - to make certain that something happens or is done ให้การยืนยัน รับรอง
treatment - the way that you deal with someone
fair treatment - dealing with all people the same way (equally) and in a reasonable way
promote - take action to make something exist or some method or approach be used
process - a series of actions that you take in order to achieve a result แนวทางปฏิบัติ, กระบวน, วิธีการ
resolve - to solve a problem, or to find a satisfactory way of dealing with it แก้ไขปัญหา, หาทางแก้ปัญหา
dispute - disagreement and argument about something
drafting - writing up a document
debt collection - the activity of getting money and assets from borrowers who fail to pay back their money on time, the business is called a "debt collection agency" (See Wikipedia)
ensure - to make certain that something happens or is done ให้การยืนยัน รับรอง
treatment - the way that you deal with someone
fair treatment - dealing with all people the same way (equally) and in a reasonable way
promote - take action to make something exist or some method or approach be used
process - a series of actions that you take in order to achieve a result แนวทางปฏิบัติ, กระบวน, วิธีการ
resolve - to solve a problem, or to find a satisfactory way of dealing with it แก้ไขปัญหา, หาทางแก้ปัญหา
dispute - disagreement and argument about something
Complaints have grown from debtors who thought borrowing contracts and appraisals of collateral were unfair.
An agency called the "National Debtor Center of Thailand" has received myriad complaints about unfair interest rate calculations, unfair appraisals, high interest rate spreads and harsh debt collection measures.
debtors
- people or companies that owe others money
contracts - formal agreement, usually written
appraisals - determining how much a piece of real estate (home, building, land) is worth
collateral - things of value that can be taken by the lender if the borrower fails to repay the loan ทรัพย์สินผูกพันตนเพื่อเอาไว้หักชำระหนี้หากไม่ชำระหนี้นั้น (See glossary)
National Debtor Center of Thailand - an organization with the goal of protecting the rights of people who have borrowed money (debtors) (See website)
complaints - when people say there is something wrong and they want it changed
interest rate - the percentage of the amount loaned that must be paid to the lendor as the fee for borrowing the money
harsh - strict, very strong, unkind อย่างรุนแรง
measures - actions taken to deal with a problem มาตราการ
contracts - formal agreement, usually written
appraisals - determining how much a piece of real estate (home, building, land) is worth
collateral - things of value that can be taken by the lender if the borrower fails to repay the loan ทรัพย์สินผูกพันตนเพื่อเอาไว้หักชำระหนี้หากไม่ชำระหนี้นั้น (See glossary)
National Debtor Center of Thailand - an organization with the goal of protecting the rights of people who have borrowed money (debtors) (See website)
complaints - when people say there is something wrong and they want it changed
interest rate - the percentage of the amount loaned that must be paid to the lendor as the fee for borrowing the money
harsh - strict, very strong, unkind อย่างรุนแรง
measures - actions taken to deal with a problem มาตราการ
Kalyani Rutthakarn, the director of the centre, said land appraisals for foreclosures were based on a low range announced by the Finance Ministry's Dhanarak Asset Development Department, which are used for tax collection.
Debtors have also complained about the interest rates banks charge and the way they go about collecting assets in case of default on consumer loans. The approach is too severe, considering the interest rate spread banks enjoyed, she said.
land appraisal - an
estimate of the value of a piece of land
range - a number of different things that are of the same general type ขอบข่าย, ประเภท
tax collection - the activity of collecting taxes from businesses and households performed by the government
charge - when a business asks for a certain amount of money for some service
assets - things owned, especially property and money, for example: stocks, bonds, real estate, loans to others, or money สินทรัพย์, ทรัพย์สิน
approach - a particular way of doing something or thinking about something วิธีการทำให้ถึงจุดหมาย, การจัดการกับปัญหา
severe - very serious and unpleasant รุนแรง, ที่น่าเป็นห่วง
spread - the difference between two rates of return or rates charged
interest rate spread - the difference between two interest rates (here: the difference between interest rate charged borrowers (income) and the interest rate given to depositors (source of money lent)
range - a number of different things that are of the same general type ขอบข่าย, ประเภท
tax collection - the activity of collecting taxes from businesses and households performed by the government
charge - when a business asks for a certain amount of money for some service
assets - things owned, especially property and money, for example: stocks, bonds, real estate, loans to others, or money สินทรัพย์, ทรัพย์สิน
approach - a particular way of doing something or thinking about something วิธีการทำให้ถึงจุดหมาย, การจัดการกับปัญหา
severe - very serious and unpleasant รุนแรง, ที่น่าเป็นห่วง
spread - the difference between two rates of return or rates charged
interest rate spread - the difference between two interest rates (here: the difference between interest rate charged borrowers (income) and the interest rate given to depositors (source of money lent)
The group's members met recently with the ministry about their concerns.
Tawatchai Yongkittikul, secretary-general of the Thai Bankers' Association, denied unfair lending contracts and conditions were the origin of the problem.
He said local banks could not charge an inflated interest rate because it is against the law. He added it was normal practice that lenders seek recourse from borrowers if the collateral does not offset the loan.
concerns
- worries ความกังวล
denied - said it was not true
lending - giving money to someone who agrees to pay it back in the future การให้ยืม
conditions - the details in the loan agreement that say what you must do and have to get the loan
origin - source, where something comes from
local - in the area or country that you live in ท้องถิ่น
inflated - (of a price) higher than it should be ซึ่งเฟ้อ
inflated interest rate - interest rate higher than it should be
seek recourse from borrowers - try to get additional money and assets from the borrower who did not pay back loan
offset - reduce by moving in the opposite direction, counter-balance, compensate in the opposite direction ("x offsets y" means "x reduces the effect of y"), make up for (profits from the manufacturing business offset losses from the retail business) (See glossary)
loan - an amount of money that a person, business or country borrows เงินกู้
denied - said it was not true
lending - giving money to someone who agrees to pay it back in the future การให้ยืม
conditions - the details in the loan agreement that say what you must do and have to get the loan
origin - source, where something comes from
local - in the area or country that you live in ท้องถิ่น
inflated - (of a price) higher than it should be ซึ่งเฟ้อ
inflated interest rate - interest rate higher than it should be
seek recourse from borrowers - try to get additional money and assets from the borrower who did not pay back loan
offset - reduce by moving in the opposite direction, counter-balance, compensate in the opposite direction ("x offsets y" means "x reduces the effect of y"), make up for (profits from the manufacturing business offset losses from the retail business) (See glossary)
loan - an amount of money that a person, business or country borrows เงินกู้
I encourage debtors who believe lenders violated the law to sue in the court," he said.
A typical conflict between debtors and lenders happens when the former ask for any money left over above the amount owed from the sale of collateral in case of foreclosure. Likewise, both parties often argue about the settlement of outstanding debt, said Dr Tawatchai.
encourage
- to make someone more likely to do something, or to make something
more likely to happen ปลุกใจ
sue - start a legal case against someone who has harmed to get money from them ฟ้องร้อง
conflict - an angry disagreement between people or groups ความขัดแย้ง, ความไม่ลงรอยกัน
foreclosure - the legal process of a lender taking away a borrower's property (that the borrower borrowed money from the lender to buy but failed to pay back)
parties - people or companies entering into a business arrangement or deal
settlement - an agreement that ends (settles) a legal dispute or argument
outstanding - currently exists, not finished yet
settlement of outstanding debt - a legal agreement to pay back what is owed to a lender (maybe less than full amount owed if borrower has problems paying back)
sue - start a legal case against someone who has harmed to get money from them ฟ้องร้อง
conflict - an angry disagreement between people or groups ความขัดแย้ง, ความไม่ลงรอยกัน
foreclosure - the legal process of a lender taking away a borrower's property (that the borrower borrowed money from the lender to buy but failed to pay back)
parties - people or companies entering into a business arrangement or deal
settlement - an agreement that ends (settles) a legal dispute or argument
outstanding - currently exists, not finished yet
settlement of outstanding debt - a legal agreement to pay back what is owed to a lender (maybe less than full amount owed if borrower has problems paying back)
He was adamant that most arguments resulted from reckless spending and eroding financial management, both of which have been increasing since the 1997 economic crisis.
Thais need to stop overspending. With consumer loans, we have found they are spending it on unnecessary items," he said.
Banks normally offer restructuring for debtors unable to service obligations, with debt reduction or rescheduling two available measures.
Local banks have clear guidelines for debt repayment. Most of the problems result from debtors' evasion of servicing debt, after which they ask for debt reduction. It was depositors' money that banks used to lend," he said.
An official from the Legal Execution Department said the ministry wanted to promote mediation before foreclosure to avoid problems from low appraisals of collateral, which could leave debtors indebted even after bankruptcy
adamant
- determined not to change your belief or decision about something
ยืนกราน
reckless - while acting, not thinking about the possible bad effects of your actions on other people สะเพร่า
crisis - an urgent, difficult or dangerous situation วิกฤต
restructuring - changing the loan contract to make it easier to pay back
service - when a borrower pays money back money they owe on a loan
obligations - things you must do; duties ข้อบังคับ, หน้าที่ที่พึงกระทำ (here: debt, liabilities, money that must be paid in the future to another person)
clear - easy to understand
guidelines - rules to help guide action แนวทาง นโยบาย
evasion - avoiding (doing something you must do) การหลีกเลี่ยง
official - approved by the government or some authority ที่เป็นทางการ
indebted - owe people money, borrowed money that hasn't been paid back
reckless - while acting, not thinking about the possible bad effects of your actions on other people สะเพร่า
crisis - an urgent, difficult or dangerous situation วิกฤต
restructuring - changing the loan contract to make it easier to pay back
service - when a borrower pays money back money they owe on a loan
obligations - things you must do; duties ข้อบังคับ, หน้าที่ที่พึงกระทำ (here: debt, liabilities, money that must be paid in the future to another person)
clear - easy to understand
guidelines - rules to help guide action แนวทาง นโยบาย
evasion - avoiding (doing something you must do) การหลีกเลี่ยง
official - approved by the government or some authority ที่เป็นทางการ
indebted - owe people money, borrowed money that hasn't been paid back
(Source: New credit card, debt laws to better protect consumers, Justice Ministry urges mediation, 5/07/2010, Parista Yuthamanop, link)
