Global Report: Collections Draft Law Passed in Thailand

In Thailand, the National Legislative Assembly on Friday passed a draft law outlining a ban to protect people from being targeted by rogue debt collectors.

State officials will not be allowed to run collection agencies or get involved in debt collection activities, unless they are the lenders. Members of the armed forces are to be banned from taking part in the business, which in Thailand has often been riddled with controversy and violence.

Wannachai Boonbamrung, a member of the National Legislative Assembly, told the Bangkok Post that the ban is mainly aimed at military and police officers. He said it is inappropriate for members of the armed forces to be involved in collection, even if their collection activities are considered legal.

Violation of the ban will draw a prison term or a fine.

The bill creates guidelines such as prohibiting collectors from discussing debts with third parties or contacting people other than the debtor to seek payments. The bill also allows for the creation of a national-level committee to oversee collections.