Deep in credit-card debt and suffering from cruel repayment terms? You are not alone.
Kai (not his real name), a 32-year-old business owner, found he was in trouble when his bank deducted Bt20,000 (S$844) from his account.
"It meant I didn't have the money to buy a computer server one of my customers needed," he said.
Kai hadn't repaid his debt for a few months.
"When I called to ask why I hadn't been contacted before they deducted the money, an official said the bank was just following regulations. But it didn't seem fair to me."
Kai stopped using his credit card right after he repaid his debt.
'Silent' deductions
Many others have faced similar "silent" deductions, a source said, adding that some accounts had been emptied to pay credit-card debts.
During the first quarter credit-card debts unpaid for more than three months totalled Bt5.55 billion - a rise of Bt368 million, or 7 per cent, compared with the previous quarter, says the Bank of Thailand.
A 29-year-old company employee named Aof (not her real name) said that she used her new card to pay a Bt720.50 shopping bill in March but missed the repayment deadline of April. A month later, she faced a penalty collection charge of Bt267.50. "Ten days later, I called the credit-card company to query the expense. I was shocked when the official told me to pay another Bt267.50 for missing the deadline for a second month," Aof said.
"That meant Bt535 in collection charges on a debt of only Bt720.50. I thought I was being taken advantage of." She negotiated and reached an agreement to pay a total of Bt988.
Meeting to find solution
Niroth Charoenprakob, secretary-general of the Office of the Consumer Protection Board (OCPB), said 95 complaints regarding credit-card debt had been lodged since October. The complaints included unfair deductions from holders' bank accounts, impolite debt collectors and high interest rates.
"The OCPB will hold a meeting chaired by Prime Minister's Office Minister Satit Wongnongtaey next Monday to decide on fair deductions and penalties for late credit-card repayments," Niroth said.
