Some Credit-Card debts never die if customers aren't careful | Bangkok Post: business

BY INVITATION

The statute of limitations for credit-card debt _ a time limit within which the bank must sue the debtor _ is two years from the date following the debtor's default on payment. Failure by the bank to sue past the expiration date will end its right to enforce the debt and free the debtor from the debt burden. A number of debtors, however, continue to pay bills after debts expire, unknowingly bringing their accounts back to life and exposing themselves to the risk of lawsuits once again.

Debt-collection practices in the banking industry will ensure that, expired or not, the debt will be pursued and the debtor will receive persistent phone calls, demand letters and other pressure until full settlement is made. Succumbing to the pressure, some debtors agree to pay small amounts just for the calls to go away, not realising the dire legal consequences of doing so.

In Thailand, there is no law requiring the bank to tell the borrower that he is not legally obliged to pay the credit-card debt after the two-year limitation period expires. The Bank of Thailand's guidelines on debt collection practices, currently in force, are silent on this rule, and the banks as well as debt-collection companies have a free hand in withholding this vital information when demanding debt payments from consumers.