Micro Finance Debt Collecting

These are the rules for the Micro Finance debt collecting. Likewise read further to understand debt collection in Thailand. Announcement of the Debt Collection Supervision Committee regarding the determination of fees or any expenses in debt collection, dated 9 August 2021. Likewise the announcement of the Fiscal Policy Office on the determination of criteria, methods, and conditions in Provincial-level microfinance business operations under supervision (No. 3) dated 9 September 2021.

The Debt Collection Supervision Committee (The Committee). They issued an announcement regarding the determination of fees or any expenses in debt collection, dated 9 August 2021. This announcement was published in the Royal Gazette on 13 August 2021. Likewise this will come into effect 30 days from the date of publication. That is from 12 September 2021 onwards (Attachment 1). This affects debt collection in Thailand on microloans.

The Committee’s announcement enforces general regulations regarding the collection of fees or expenses for debt collection. Likewise, including those related to provincial-level microfinance business operations under supervision (Pico Finance Loans).

The Fiscal Policy Office (FPO), as assigned by the Ministry of Finance to supervise the Pico Finance business, informs you of the following:

Methods and Conditions

FPO has revised the form attached to the FPO announcement regarding the determination of criteria, methods, and conditions. This for operating a provincial-level microfinance business under supervision, dated 27 March 2019.

– The revised details include interest rates, profit rates from lending, fines, service fees, and any other expenses and costs as actually paid and reasonably related to the Pico Finance loan.

– Likewise according to Section 16 of the Ministry of Finance’s announcement. The expenses for debt collection are determined as follows:

• 1. The maximum debt collection expense for Pico Finance business operations is reduced from “not more than 80 baht/person/month” to “not more than 50 baht/person/month.”
• 2. Likewise Pico Finance business operators can collect debt collection expenses as specified above if the debtor has overdue debt or accumulated payments exceeding 1,000 baht.
• 3. These provisions are effective from 12 September 2021 onwards.

FPO requests business operators to submit announcements. This detailing interest rates, profit rates from lending, fines, service fees. Likewise any other fees or expenses actually paid and reasonably related to Pico Finance loans.

• This should be done using the attached form specified in the FPO announcement. This on the determination of criteria, methods, and conditions for conducting provincial-level microfinance businesses under supervision (No. 3) dated 9 September 2021.
• The submission should be made to the FPO by 12 September 2021.

Lastly please ensure that all necessary documents are sent to the FPO within the specified period.