If you erase the debt record, we all go back to zero. It’ll create total chaos

-Fight Club

The moment I saw this headline, my mind somehow linked back to a quote from Fight Club. This is definitely one way of boosting credit growth in Thailand, erase all the bad debt records so that financial institutions will no longer red flag clients without bad debts and proceed to lend. Ok……

The committee granted approval to the NCB to report the payment history of debtors with payments overdue by at least 90 days for five years. Such records will be held on the NCB’s database for another three years before being erased. This means debtors’ credit records will be kept for eight years.
Current regulations require the NCB to report the payment records of debtors who default until the overdue debt is paid off.
The move aims to give borrowers more access to financial sources so that they shun loan sharks.

Source: Bangkok Post