CURBS ON LENDERS TAKING CAR DOCUMENT AS COLLATERAL

 Under the planned regulation, to be implemented in November, these financial institutions must charge a fixed rate on the loan plus fee of no more than 28 per cent per annum. The minimum registered capital of these lenders must be no less than Bt50 million.

 The move came after allegations of misconduct among some of the more than 1,000 financial institutions involved, such as unfair loan contracts, hidden fees, no channel for complaints and high interest rate.

 More than 3 million customers use this lending service nationwide or about Bt200 billion in the outstanding loan, Daranee Saeju, BOT senior director, said.

 The central bank is now conducting a public hearing among consumers and business operators on theloan regulation, she added.