UTN pushes credit bill to help ease debt

The United Thai Nation (UTN) Party has proposed a bill to reform the credit bureau law to create opportunities for people to access credit and reduce the likelihood of them becoming indebted to loansharks.
The party’s deputy leader and list MP Anucha Burapachaisri; Atavit Suwanpakdee, the initiator of the reform bill; and other key party members recently released a statement on amending the Credit Information Business Act BE 2545 (2002).
Mr Anucha stressed the importance of reforming the credit bureau system, saying at least five million people have been negatively impacted by the current credit data collection practices, half of which arose from financial struggles during the Covid-19 pandemic.
Under the existing system, individuals with poor credit histories face significant barriers to accessing legitimate loans, often forcing them to seek high-interest, unregulated loans, commonly known as off-system loans. These predatory practices expose borrowers to exorbitant interest rates and harsh debt-collection methods.
The party then proposed the reform, aiming to offer a lifeline to those affected by poor credit histories, helping individuals and small businesses regain access to the formal lending system.
Mr Anucha stressed that while legal reforms are essential, other measures should also be implemented, including revising the country’s loan approval policies to enhance access, particularly for small borrowers; adopting international standards to ensure fair and appropriate lending practices; and educating borrowers on the importance of financial discipline to prevent over-borrowing and moral hazards.
Mr Atavit added that the reform measure aims to overhaul the credit evaluation process. Key provisions include the instant removal of negative credit records after six months of consecutive repayments or upon full debt settlement. In addition, the system would shift towards credit scoring rather than storing complete credit histories, with credit scores to be checked free of charge, he said.
Mr Atavit noted that reform, backed by consumer organisations and over 6,000 citizens, has gained momentum thanks to support from the UTN Party, speeding up the legislative process.
He expressed confidence the change would lead to more accurate credit assessments and increased competition among banks regarding interest rates.
The public can participate in pushing for the reform on the parliament’s website or at www.changeblacklist.org.