The Thai Hire-Purchase Association (THPA) has asked the Office of the Consumer Protection Board (OCPB) to increase the maximum interest rate for hire-purchase loans as the business is being affected by rising rates.
Auto hire-purchase lenders have been affected by rising interest rates, which have increased financial costs, but the ceiling interest rates for the segment are capped, said THPA president Sarun Thongtammachart.
As a result, profit margins have narrowed, he said.
Used car sellers offer low down payments and long repayment periods, charging interest rates close to or…
