Navigating the Bank of Thailand’s New Regulation for Operators of Vehicle Hire Purchase and Leasing Business

Key takeaway

A. Criteria for business operation

The BOT Notification stipulates criteria of the Hire Purchase and Leasing Business, which serve as minimum standards for operators. An operator may undertake its operation in a way that is more favorable to the customers than the minimum standards.

The criteria are categorized into (i) general criteria and (ii) specific criteria as summarized below.

(i) General criteria

The general criteria includes, among others, collection and disclosure of interest, service fee and fine, calculation of interest rate, preparation of debt schedule. The table below shows details of the general criteria applicable to non-financial institution operators of the Hire Purchase and Leasing Business.

*This criterion will take effect from 1 June 2026.

(ii) Specific criteria

The specific criteria includes, among others, calculation of default interest, order of payment application, internal management for fair service, and outsourcing arrangement. The table below shows details of specific criteria applicable to the non-financial institution operators of the Hire Purchase and Leasing Business.

*This criterion will take effect from 1 June 2026.

B. Duties with relevant authority

In addition to criteria that the operator of the Hire Purchase and Leasing Business must comply with, the BOT Notification stipulates the duties for the non-financial institution operator to conduct certain disclosures, filing, and notification to the BOT, for example:

• Report on identity verification
  Operators of the Hire Purchase and Leasing Business must submit identity verification report to the BOT (i) by 31 March 2026 in the case where the operators commence the Hire Purchase and Leasing Business prior to the effective date of this BOT Notification, or (ii) within 120 days from the date of registration with the Department of Business Development in case of operating the said businesses from effective date of the BOT Notification.
• Report and notification of details on changes
  Where the chief executive officer of the operator is changed, the operator must notify such change to the BOT within 30 business days from the date of change.
• Notification of cessation of the business
  Where an operator that has no account receivables and complaint pending with the BOT wishes to cease the operations of Hire Purchase and Leasing Business, the operator shall notify the BOT at least 30 business days prior to the date of business cessation.
• Disclosure of information on fine settlement or accusation
  Where the operator, its directors or the person having management power over the operator has been subject to fine settlement or accused by the BOT on the ground of violation of the BOT Notification, the operator must disclose information regarding such fine settlement or accusation to customers.

C. Effective date

The BOT Notification has already taken effect from 3 December 2025 onwards. However, certain criteria as remarked above will come into force on 1 June 2026.

Conclusion

In light of the approaching full effect of this BOT Notification in June 2026, operators of the Hire Purchase and Leasing Business, including both current and prospective operators, should pay close attention to and fully understand their compliance obligations thereunder. Operators falling within the scope of these requirements need to implement the necessary internal preparations and coordinate with customers to ensure that their business operations comply with the new regulatory standards governing the Hire Purchase and Leasing Business.