BoT chides fee violators after guidelines flouted
The Bank of Thailand has warned banks and non-bank financial institutions under its supervision to comply with its ceiling interest rate, fees and penalty rates for personal loans and credit cards.
The central bank's move came after it found rates and fees charged by some operators do not follow its guidelines, Ronadol Numnonda, assistant governor overseeing the supervision group, wrote in a circulated letter.
"The Bank of Thailand's rules setting interest rates, fees and penalty rates for banks and finance companies are transparent, encouraging fair rates based on real costs, and allowing users to compare service conditions. We found some operators do not charge fees in compliance with the regulation," he said without revealing names.
"The central bank reiterates service providers must strictly abide by the rules."
The ceiling interest and penalty rates for credit cards are 18% and personal loans 28%.
Pittaya Vorapanyasakul, executive vice-president of Krungthai Card Plc (KTC), said the company's interest rates and fees for personal loans and credit cards comply with the maximum rates set by the central bank. KTC is a subsidiary of Krungthai Bank, of which lion's share is held by the Finance Ministry.