BoT to oversee loans for auto hire-purchase, leasing

The Bank of Thailand may take over the regulation of fees and interest rates for auto hire-purchase and leasing loans, replacing the Office of the Consumer Protection Board (OCPB) under a new law.

- SOMRUEDI BANCHONGDUANG

Following an amended royal decree that authorises the central bank to oversee the auto lending sector, the regulator will coordinate with the OCPB on the regulation of fees and interest rates in this segment, said Pirajit Padmasuta, senior director of financial consumer protection and financial service provider supervision at the Bank of Thailand.

The amended royal decree, published in the Royal Gazette on June 5, stipulates hire-purchase and leasing businesses for cars and motorcycles fall under the central bank's supervision beginning Dec 2, 2025.

The OCPB typically revises the fees and interest rates for auto loans every three years, with the next review scheduled for the end of this year.

The effective annual interest rates under OCPB oversight are 10% for new car loans, 15% for used car loans and 23% for motorcycle loans.