NO&T Asia Legal Review
Introduction
At the end of January 2019, the Bank of Thailand issued specific controls which regulate the business of providing car title loan1, commonly known as “car4cash” in Thailand. Although the car title loan business has been one of Thailand’s largest consumer lending industries, it was previously among the least regulated. However, government authorities have since shown their willingness and interest to regulate this industry with the passage of the new regulations. The new regulations depart from the traditional pledge system which was not an effective business model for borrowers. The new regulations also provide clarity on the rights and duties of both business operators and borrowers, but it remains to be seen how the new regulation will truly improve the market conduct in practice.
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