The Bank of Thailand draws 19 Non Banks Join “Debt Recovery Clinic”, Targeting Hundreds Thousands Case Solved.
7-5-2019–Mr. Wiratai Santiprapop, Governor of the Bank of Thailand (BOT), revealed that the Debt Recovery Clinic project is an important central infrastructure of the country aimed at helping people with credit card debt or unsecured personal loans to creditors.
Many which normally the debt restructuring is difficult since each creditor has different criteria and the debtor must negotiate with each creditor by himself, Sukhumvit Asset .
Sukhumvit Asset Management (SAM) will be the central agency that negotiates with the debtor instead of the creditor. Which will help the minority to have a chance to solve the problem completely and be able to break out of the debt cycle.
The pilot project, in the first phase implemented past two years covers only the debt of commercial banks in the second phase, therefore expanding the scope to include credit card debt and personal loans of non-bank operators.
Since the debtors of Non-bank accounts for more than 80% of the total 19 non banks creditors which are willing to join the project in addition to the 16 banks which has been implementing the debt solving in the past two years of the phase one project.
When combined non banks with 16 participating banks, the debt-free clinic project covers almost all credit cards and personal loans. There are about 80% of credit card debt and personal loans were under the contracts made with non-banks. The debtors of non-bank can apply from 15 May 2019 onwards.
“At present, the debtors in the system that owe the bank and Nontbank account for 490,000 people, with a debt of approximately 49,000 million baht. The expansion of the debt relief clinic project will cover almost 99%. Good for the economy and help solve this household problem “
Miss Yanee Phueakkham, President of the Personal Loan Club (an executive of KrungsriFirst Choice Credit Card operated) added that Personal Loan Club was very pleased to join and be ready to support the debt relief clinic project to continue the spirit of helping people with bad debts by expanding the scope of cooperation in the second phase from the original covering only the debtors of commercial banks.
To cover debtors of 19 non-bank operators, which will help increase the opportunity to enter the project and help to solve the overall problem more efficiently.
The debtors participating in the Debt Recovery Clinic project will have less monthly installments with interest rates that are lenient and constant throughout the period of the project which is able to pay for installments for up to 10 years.
The project provides opportunities for people who experience debt problems to have the opportunity to pass the financial crisis without having to rely on non-formal debt, which will result in more severe problems.
In addition, the Personal Loan Club is ready to cooperate in lending with responsibility, including to disseminate and promote financial knowledge to the public continuously through the channels of all 28 club members, hoping that this cooperation will help reduce household debt problems effectively in the long run.
“For the groups with outstanding debt paying the minimum payment, although not yet qualified, but can be modified later as well, for them to pay as low as possible, which may be greater than the minimum 5 – 10% threshold, so that early debt decreases faster, this bot able to consult with only a financial institution “
Mrs. Phongphen Ruangvirayuth, Chairman of the Board of Directors Sukhumvit Asset Management Co., Ltd. (SAM)revealed that since the debt relief clinic project, Sukhumvit Asset Management Company Limited, or SAM, has acted as a central agency to link small debtors with many bank creditors to be able to find a solution to common debt problems. In 2019, there were 44,600 people interested in applying to the project. There were bout 1,500 debtors has proceeded in debt restructuring counseling .
In addition, financial literacy is provided to the debtor including company employees , government officers and more than 2,200 private individuals.
Phase2 debt relief clinic covering 19 non-bank entrepreneurs will help the project can be a mechanism to solve household debt problems which is a more comprehensive structure of the country.
SAM has prepared for full service including preparing staff for counselors to resolve debt problems, work system development, including adding new communication channels such as “Line official account – debt clinic by SAM” which will make contacting and applying to join the project with SAM more convenient and faster.
In addition, SAM also organized a holiday meet with the Debt Relief Clinic project, open on Saturday 11, 18 and 25 May 2019, from 09.00 hrs. to 16.00 hrs. to facilitate contact and apply to join the project.
In this regard, one of the things that SAM places importance on and continues to do is to promote knowledge and create good financial discipline.
This year will focus on student groups and working age groups, by organizing activities to increase money management skills which are important, including life skills and will help promote the correct values in reduce extravagance and create good financial health for the new generation which will help reduce household debt problems which is the aim that all parties adhere to together.
