Educational Information Only
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Hire-Purchase Section CPB-4-5 — Controlled-contract notification item 4(5) - repossession, auction notice, surplus and shortfall
Hire-Purchase (Civil and Commercial Code and Consumer Protection controlled-contract notifications) (เช่าซื้อ ตามประมวลกฎหมายแพ่งและพาณิชย์ และประกาศคณะกรรมการว่าด้วยสัญญา (ธุรกิจที่ควบคุมสัญญา) ตามพระราชบัญญัติคุ้มครองผู้บริโภค) — Section CPB-4-5.
Plain-English Summary
After termination and repossession, before selling the vehicle by auction or other suitable public sale the owner must (a) give the hirer at least seven days' written notice of a right of first purchase for the outstanding debt (with the item 4(10) discount) and, if unused, give the guarantor at least fifteen days' notice to exercise it; (b) give the hirer and guarantor at least seven days' written notice before the sale stating the seller, date and place. If the price exceeds the outstanding debt the owner must return the surplus to the hirer; if it is less the hirer is liable for the shortfall. (c) Within fifteen days of the sale the owner must notify the hirer of the sale details, expenses (only as actually, economically and reasonably spent) and the surplus or shortfall. The outstanding debt here means the overdue and not-yet-due instalments plus penalty and collection fees actually, economically and reasonably incurred. Item 4(6): the owner may not bid, directly or indirectly.
Official Text
Official Thai text at the Royal Gazette / Office of the Council of State. Translation summary only.
Consult official sourceParent Statute
Hire-Purchase (Civil and Commercial Code and Consumer Protection controlled-contract notifications)
เช่าซื้อ ตามประมวลกฎหมายแพ่งและพาณิชย์ และประกาศคณะกรรมการว่าด้วยสัญญา (ธุรกิจที่ควบคุมสัญญา) ตามพระราชบัญญัติคุ้มครองผู้บริโภค · B.E. 2522 (1979)
Thailand has no single 'Hire-Purchase Act'; an older version of this page that described a 'Hire-Purchase Business Act' was wrong. Hire-purchase (เช่าซื้อ) is governed by (a) sections 572-574 of the Civil and Commercial Code, which define the contract, require it to be in writing, and set the hirer's and owner's termination rights, and (b) notifications of the Contract Committee (คณะกรรมการว่าด้วยสัญญา) issued under section 35 bis of the Consumer Protection Act B.E. 2522 (1979), which designate certain hire-purchase businesses as 'controlled-contract' businesses and prescribe mandatory contract terms. The notification on hire-purchase of cars and motorcycles (B.E. 2561, in force from 1 July 2018) covers contracts with individuals for personal use; a separate controlled-contract notification covers hire-purchase of electrical appliances.
The summary above is a plain-English educational paraphrase of Section CPB-4-5 of the Hire-Purchase (Civil and Commercial Code and Consumer Protection controlled-contract notifications). It is not an authoritative translation. For the binding Thai text, consult the Royal Gazette or the Office of the Council of State. Educational use only — not a substitute for advice from a Thai-qualified lawyer.
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