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Published on August 28, 2007

The move is due mainly to recent protests about methods used by debt-collection firms dealing with debtors who have fallen behind in their payments.

Credit Card Club chairman Shoke na Ranong said the current hot issue of loan collection would be discussed at today's meeting.

On Sunday, more than 30 debtors lodged complaints against their creditors with police for what they called abusive repayment follow-ups. All had incurred credit-card and personal-loan debts.

Shoke said credit-card providers collected loans themselves and outsourced the job to debt-collection companies. The problem had occurred with the outsource firms, even though credit-card companies had given them guidelines.

"At the meeting, we'll share information about the outsource companies. The firms that give inappropriate service will possibly have their contracts cancelled, because financial institutions must maintain their reputations," Shoke said.

For example, inappropriate actions include using impolite language to customers or disclosing personal information to others. However, the Credit Card Club will not issue official regulations on collection practices, which depend on each financial institution's framework.

Krungthai Card (KTC) senior executive vice president Thawatchai Thitisakdiskul said the company employed several outsource firms to collect loans.

Under the contract, the companies must be polite when dealing with customers.

"KTC has no policy of acting impolite with our customers during loan collection, which is the key practice that our outsource firms must follow. The company had asked some firms to discharge their staff who gave customers impolite service after the company received clients' complaints," he said.

The company always monitors the work of outsource firms and assists them with staff training, in order to improve their service. However, when hiring outsource firms, KTC will choose credible companies and consider their track record.

KTC is ready to help customers who face problems repaying debts, making it a win-win solution for both the company and the customers, Thawatchai said.

Citibank vice president Tohphan Tuchinda said the bank used several outsource firms for debt collection. The bank provides clear directions that they must not use impolite manners with customers or disclose personal information about customers to others.

"In particular, they [the outsource firms] are not allowed to use any manners that are unsuitable in terms of Thai culture. For example, telling a teacher to tell his or her student whose parents are debtors to repay the loan," he said.

He said customers should also practise financial discipline. They must repay loans to financial institutions and should not incur debts greater than they can service.

GE Money Thailand senior vice president Paradai Theerathada said his company was currently examining the issue of loan collection. Any staff violating company regulations regarding debt collection will face disciplinary action.

Beginning Saturday, GE Money Thailand will advertise its call-centre number in more channels, allowing customers to express their views.

The Bank of Thailand said that as of June, there were 11.25 million credit-card accounts with total debt of Bt169.02 billion.

Somruedi     Banchongduang

 The Nation