Bangkok: Car and motorcycle leasing and hire purchase are set to come under the supervision of the Bank of Thailand. A new royal decree will bring these businesses under the Financial Institutions Business Act, effective December 2. The Bank of Thailand is preparing to supervise these sectors to protect consumers and set uniform standard fees and interest rates.

According to Thai News Agency, Ms. Peerachit Patmasut, Senior Director of the Financial Services Protection and Inspection Department at the Bank of Thailand (BOT), revealed that the Royal Decree stipulates that the hire-purchase and leasing of automobiles and motorcycles businesses are subject to the Financial Institution Business Act B.E. 2551. This new law, announced in the Royal Gazette on June 5, 2025, will come into effect on December 2, 2025.

The law aims to protect consumers by ensuring transparent and fair services, including appropriate interest rates and fees, as well as clear information disclosure. Additionally, it seeks to restructure debt in a standardized manner and maintain the stability of the financial and economic system, particularly in managing household debt to prevent it from expanding uncontrollably.

The hire-purchase and leasing businesses currently have a total outstanding loan value of 1.6 trillion baht as of the end of 2024, with approximately one-third operated by entities not yet subject to any supervision. This law assigns the BOT to officially supervise legal entities engaged in these businesses, aiming to standardize service levels throughout the system.

Before the law takes effect, the BOT is urging business operators to prepare to register with the regulatory system. The official reporting period will be announced in advance. Interested parties can find more information on the BOT website or by calling their hotline.