Debt collection

Debt collection or demanding payment is an appropriate action for creditor in order to protect their rights. However, there are now laws specifically regulating debt collection, such as the “Debt Collection Act B.E. 2558,” to ensure that debt collection is conducted properly and does not violate the debtor right. In the present, Thai society has entered the digital age, where people can make a legal transaction without being present, which make it easier to loan money whether by Line, Facebook or any other social media. According to the Electronic Transaction Act B.E. 2544, it stipulated that loan of a money through Line or Facebook is considered written evidence which agreeable to section 653 of the Civil and Commercial Code. Therefore, what every creditor should be consider is What types of debt collection are prohibited by law to prevent creditors from being at a disadvantage for not complying with the law themselves?

According to the “Debt Collection Act, B.E. 2558,” the law stipulates criteria for what is considered unlawful debt collection under sections 11 and 12. These can be divided into two main groups as follows:

Debt collection practices that involve insulting, shaming, threatening, using violence, causing physical harm, or damaging the debtor’s property are prohibited. Additionally, disclosing the debtor’s debt to unrelated third parties or sending open documents through the mail that clearly indicate debt collection are considered illegal. These actions are offenses under section 11 and are subject to legal penalties under section 39 and 41 of the “Debt Collection Act, B.E. 2558” which include imprisonment for up to 1 year or a fine up to 100,000 Baht, or both. In the cases where harm is caused to the debtor’s body, reputation, or property, the penalties can be imprisonment for up to 5 years, a fine of up to 500,000 baht, or both.

Debt collection by presenting or using messages that imply actions of a lawyer or a law firm is punishable under Section 40 with imprisonment for up to 3 years, a fine of up to 300,000 baht, or both. However, in severe cases where the creditor presents or uses messages that imply actions of the court, government officials, or state agencies, the maximum penalty is imprisonment for up to 5 years, a fine of up to 500,000 baht, or both, according to Section 41 of the said Act.

As you can see that there are now laws regulating debt collection that has criminal penalties. If a creditor wishes to pursue debt collection but is concerned that their actions may violate the Debt Collection Act B.E. 2558, which could result in criminal penalties, it is recommended that they consult with a lawyer. This will allow for a review of the evidence related to the debt and help in planning an appropriate course of action. Consulting with a lawyer ensures that the creditor can collect the debt and exercise their rights lawfully.