D-Day 2 Dec 2025! BOT Tightens Control Over Auto Hire-Purchase and Leasing Businesses: Are the 10 New Rights Truly Lowering Interest Rates?

Today (2 Dec 2025) marks a significant "D-Day" for the auto hire-purchase and motorcycle leasing industry, representing the start of the biggest transformation in several years, as announced.The Royal Gazette published Bank of Thailand (BOT) Announcement No. 54/2568.Signed by “Vithi Ratanakorn,” Governor of the Bank of Thailand.

This mandates that hire-purchase and leasing businesses for cars and motorcycles be fully recognized as financial businesses, effective immediately. This means all hire-purchase firms are officially elevated to "financial business" status and will be regulated under the Financial Institution Business Act of 2008 by the BOT.

This regulatory shift is more than a mere change of agency; it signals a major restructuring of interest rates and the establishment of important service standards.

However, a key question remains: How will current and prospective car hire-purchase customers benefit from stronger protections under this new announcement? Thairath Money summarizes as follows.

10 new benefits and consumer protections for car hire-purchase customers under BOT supervision.

• Change of regulator: Hire-purchase businesses are now directly overseen by the BOT, replacing the previous general consumer protection laws, resulting in stricter and more standardized financial supervision.
• Higher legal standards: Being subject to the Financial Institution Business Act of 2008 means leasing companies must comply with financial stability standards akin to other financial institutions, reducing risks that could affect customers.
• Expect fair interest rates: The BOT has full authority to review and set appropriate interest rate ceilings for hire-purchase loans based on market conditions, likely leading to fairer rates for consumers.
• Transparent and fair contracts: Hire-purchase agreements must be clear and comply with the BOT’s financial fairness standards, minimizing ambiguous clauses or terms that exploit consumers.
• Efficient complaint mechanisms: Consumers can file complaints regarding hire-purchase issues directly with the BOT’s Financial Consumer Protection Center (FCP), a specialized channel experienced in handling financial disputes.
• Clear rights to account closure: Provisions for early redemption or account closure are standardized, and customers will receive transparent discounts on unpaid interest according to BOT guidelines.
• Supervised debt collection: The BOT will regulate and enforce strict, fair debt collection practices to prevent misconduct by companies.
• Full disclosure of all costs: Leasing companies are required to fully and clearly disclose all fees and costs related to hire-purchase transactions, in line with financial business oversight standards.
• Promoting debt restructuring: Leasing firms will be encouraged or mandated to provide flexible debt restructuring options for financially troubled customers, following financial institution guidelines.
• Enhanced credibility and stability: Classifying leasing as a "financial business" will increase credibility for operators and contribute positively to the long-term stability of the automotive credit system.

Previously disclosed by the BOT, there are currently about 3,000 legal entities engaged in hire-purchase and leasing businesses in Thailand, with 60 companies holding portfolios exceeding 1 billion baht.

The latest Royal Gazette also states the BOT will permit hire-purchase and leasing businesses to use financial business-related names under Section 12 of the Financial Institution Business Act of 2008, except for terms like "bank," "finance," "credit foncier company," or similar, effective from 2 December 2025.

Source: Bank of Thailand, Royal Gazette.

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