Byline: Parista Yuthamanop
Oct. 2--The new Financial Institutions Act enhances consumer rights protection by stipulating that loan contracts spell out the total obligation to be borne by a guarantor, according to the Bank of Thailand.
In the absence of such a requirement in the law in effect now, it is generally assumed that the guarantor is responsible for all future obligations of the borrower.
Krirk Vanikkul, assistant governor for the central bank's Financial Institutions Policy Group, said the current practice allowed both borrowers and guarantors to be treated unfairly.
He said the bill, which would replace the Commercial Banking Act and the Finance ...