Educational Information Only
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Hire-Purchase Section CPB-5 — Controlled-contract notification item 5 - prohibited terms (including default-penalty cap)
Hire-Purchase (Civil and Commercial Code and Consumer Protection controlled-contract notifications) (เช่าซื้อ ตามประมวลกฎหมายแพ่งและพาณิชย์ และประกาศคณะกรรมการว่าด้วยสัญญา (ธุรกิจที่ควบคุมสัญญา) ตามพระราชบัญญัติคุ้มครองผู้บริโภค) — Section CPB-5.
Plain-English Summary
Item 5 bars terms that: shift pre-contract vehicle charges to the hirer; set a late-payment penalty above the effective interest rate plus 3 per cent a year (ร้อยละสามต่อปี), and in any case above 15 per cent a year (ร้อยละสิบห้าต่อปี); make the hirer pay the full hire-purchase price if the vehicle is lost, destroyed, seized or forfeited without the hirer's fault; make the hirer pay anything on termination and repossession other than penalty, collection fees and remaining VAT limited to costs actually, economically and reasonably incurred; make the hirer accept an assignment of rights or extra burdens without written consent; or let the owner charge amounts beyond those the notification allows.
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-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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