Leasing firms wary of tighter oversight

Leasing firms have expressed concerns over the Bank of Thailand's move to bring auto leasing and hire-purchase businesses under its supervision, saying tighter rules could push vulnerable borrowers towards informal lending.

- NUNTAWUN POLKUAMDEE

The central bank moved to tighten oversight of the non-bank sector by bringing auto leasing and hire-purchase businesses under the Financial Institution Business Act, with an amendment published in the Royal Gazette on June 5. The new law comes into effect on Dec 2 this year.

The landmark move, commonly referred to as the Leasing Royal Decree, aims to ensure fairer practices and stronger consumer protection across the sector. The central bank is set to issue detailed business guidelines covering fee structures, responsible lending, marketing practices, customer service standards, data privacy and complaint handling.