State officials, including members of the armed forces, are to be banned from getting involved in the controversial and often violent debt collection business.
The National Legislative Assembly on Friday passed a draft law setting out the ban to protect people from being targeted by rogue debt collectors.
State officials will not be allowed to run debt collection agencies or get involved in debt collection activities, unless they are the lenders.
Wannachai Boonbamrung, a member of an NLA committee vetting the draft bill, said the ban was mainly aimed at military and police officers.
He said it was inappropriate for members of the forces to be involved, even if their debt collection activities are otherwise legal.
Mr Wannachai said men in uniform are often accused in complaints about harsh debt collection practices.
“The ban is to end this problem. State officials will not be allowed to get involved in it,” he said.
Violation of the ban will draw a five-year prison term or a maximum fine of 500,000 baht. State officials who are authorised to collect debts, such as cooperatives officials, are exempt.
The bill also creates procedural guidelines. For example, debt collectors are barred from discussing debts with third parties or contacting anyone other than the debtor to demand payments.
It also allows for a national-level committee to be set up to oversee debt collection.
The committee will be chaired by the interior minister and include permanent secretaries from various government departments and representatives from the police, the Council of State, the Consumer Protection Board, the Fiscal Policy Office, the National Human Rights Commission, the Bank of Thailand and the Lawyers Council of Thailand.
Provincial-level committees will also be set up, chaired by provincial governors, and will include the provincial chief prosecutor and police chief, alongside consumer protection groups.
Some NLA members objected to details in the draft legislation.
Worapol Sokhatiyanurak said he disagreed with a clause that requires the Fiscal Policy Office to be responsible for the administrative work of a sub-committee to oversee the debt collection practices of juristic entities.
Mr Worapol said this responsibility should got to agencies under the Finance Ministry, because the FPO’s work is academic and policy-related.