Bankers launch registration for credit card relief

The credit card club of the Thai Bankers’ Association has opened registration for coronavirus-hit card holders who want to restructure debt to alleviate their financial burden from today until the end of June.

Credit card holders who want to join the assistance scheme can apply through various channels provided by participating card issuers, including mobile apps, websites or call centres, said club chairman Thakorn Piyapan.

All card holders are subject to a lower minimum amount due on cards of 5% from April 1, 2020 to the end of 2021 (down from 10%), rising to 8% in 2022 and then to 10% in 2023 as required by the Bank of Thailand’s guidelines for minimum assistance. But those who sign up for the aid are able to restructure their debt to term loans with lower rates than the central bank’s 18% cap.

The duration of term loan and the interest rate vary according to each credit card issuer.

Apart from credit cards, the Bank of

Thailand’s minimum assistance guidelines cover personal and car title loans; auto and motorcycle loans; machinery leasing; mortgages; and SME, nanofinance and microfinance loans.

To be entitled to debt restructuring, card holders must provide personal information and present documents such as a salary slip or an employee termination letter, Mr Thakorn said.

As the registration runs through June 30, card holders who want to participate in the debt restructuring scheme need not rush to apply on the first day and potentially overwhelm the system, he said.

In Thailand there are about 22 million credit cards and 18-19 million personal loan accounts.

“We cannot forecast the overall industry’s capability to serve the debt restructuring scheme, because we don’t know the number of those affected by the virus spread or the future situation,” Mr Thakorn said. “However, we need to help customers and ease their burden.”

Mr Thakorn, who is also head of Krungsri Consumer, Bank of Ayudhya’s unsecured loan arm, said the company is ready to provide cooperation with regulators offering financial assistance to customers under the central bank’s minimum guidelines.

Krungsri Consumer will transform unsecured loans to term loans with a maximum instalment period for credit cards of 48 months and lower interest rates.

At the same time, the company is preparing internal operations and infrastructure systems for the debt restructuring scheme, Mr Thakorn said.