NLA passes new loan bill that makes overcharging interest rate an offence

0
953

The National Legislative Assembly on Thursday unanimously approved in principle a bill banning creditors from overcharging interest rate on their debtors beyond the limits permissible by law.

A total of 169 votes were cast in support of the bill and the NLA appointed an 18-member panel to scrutinize the bill within 60 days after which it will be tabled back to the NLA for the second and final readings.

t2916-Loan

The essence of the bill is that charging an interest rate on loans beyond the legally permissible limits is an offence liable to two years imprisonment and/or a maximum fine of 200,000 baht. If the offence is committed by more than two people and it is deemed a threat to public peace, the alleged offenders are liable to four years’ imprisonment and/or a maximum fine of 400,000.

Also, creditors who intentionally specify false amount of loans in loan contracts will face two-year imprisonment and/or a fine amounting to 200,000 baht.

Overcharging interest rates, according to the bill, will be regarded as an offence in accordance with the anti-money laundering law.