Debt blacklisting 'unconstitutional'
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The People's Rights and Liberty Protection Organisation has lodged a petition with the Ombudsman's Office against National Credit Bureau Co, accusing it of violating the constitutional rights of more than 20 million people placed on the firm's blacklist o
The group, led by Veerasak Uppatham, wants the Ombudsman to rule on whether the 2002 Credit Information Business Act violates the Constitution by authorising the company to place people’s credit ratings on a blacklist, preventing them from obtaining credit and loans from financial institutions.
The law might violate Article 43 of the Constitution, which guarantees freedom of doing business, Veerasak said.
The names of many people who fell into business difficulties after the 1997 financial crisis remain on National Credit Bureau Co’s blacklist.
Many others whose businesses collapsed in the wake of the disastrous flooding in 2011 were put on the blacklist and would not be able to obtain any more credit to continue their business, he said.
A lot of people were put on the blacklist after falling behind on their credit-card payments, Veerasak said, adding that the list also includes more than 10 million farmers who could not repay their debts on time.
The credit-rating company’s actions have forced millions of people to rely on informal financial sources or even illegal loan providers. Therefore, the credit bureau is hurting the economy, he said.
Chalermsak Chantim, secretary of the Ombudsman’s Office, said he would process the appeal for the Ombudsman’s consideration as soon as possible.
