Bankers launch registration for credit card relief

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The Thai Bankers Association Credit Card Club has opened registrations for cardholders affected by the coronavirus who wish to restructure their debt to ease their financial burden from today until the end of June.

Credit card holders who wish to join the assistance program can apply through a variety of channels provided by participating card issuers, including mobile apps, websites or call centers, said club president Thakorn. Piyapan.

All cardholders are subject to a minimum amount owed on cards that is 5% lower from April 1, 2020 to end of 2021 (instead of 10%), rising to 8% in 2022 and then 10% in 2023 as required the law. Bank of Thailand guidelines for minimal assistance. But those who subscribe to aid are able to restructure their debt into term loans with rates below the central bank’s 18% cap.

The term of the term loan and the interest rate vary with each credit card issuer.

In addition to credit cards, the Bank of Thailand’s minimum assistance guidelines cover personal and car title loans; auto and motorcycle loans; rental of machines; mortgages; and loans to SMEs, nanofinance and microfinance.

To qualify for debt restructuring, cardholders must provide personal information and present documents such as a pay slip or termination letter, Thakorn said.

While registration runs through June 30, cardholders who want to participate in the debt restructuring program do not need to rush to apply on day one and potentially overwhelm the system, a- he declared.

In Thailand, there are approximately 22 million credit cards and 18-19 million personal loan accounts.

“We cannot predict the overall capacity of the industry to serve the debt restructuring program because we do not know the number of people affected by the spread of the virus or the future situation,” Thakorn said. “However, we need to help customers and ease their burden.”

Mr Thakorn, who is also the head of Krungsri Consumer, the unsecured lending arm of the Bank of Ayudhya, said the company is ready to cooperate with regulators offering financial assistance to clients in accordance with the minimum guidelines of the Bank of Ayudhya. central bank.

Krungsri Consumer will turn unsecured loans into term loans with a maximum payment period for credit cards of 48 months and lower interest rates.

At the same time, the company is preparing internal operations and infrastructure systems for the debt restructuring program, Thakorn said.

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