Buriram woman faces home seizure after co-signing a car loan

A woman in Buriram has pleaded for help after receiving a home seizure court order due to unpaid car loan instalments by a close friend she’d been a guarantor for.

A general labourer, 32 year old Pacharinporn co-signed for her friend Pu (a pseudonym) to buy a new pickup truck in 2019. Pu’s now-deceased ex-husband was the primary guarantor, with Pacharinporn as the secondary guarantor. Trusting her friend, she did not follow up on whether the loan instalments were being paid.

In January this year, Pacharinporn was shocked to receive a court notice at her home regarding the unpaid car loan. She immediately sought out her friend for an explanation. Pu assured her that she would take responsibility and asked Pacharinporn to sign a power of attorney, promising to handle the court matter herself.

Trusting her friend once again, Pacharinporn did not pursue the issue further, only to later find out that Pu never went to court.

On January 18, Pacharinporn received a foreclosure notice, requiring a home and land seizure currently valued at 370,000 baht. However, the amount owed, including principal and interest, is approximately 600,000 baht. Even after the seizure, she would still owe nearly 300,000 baht.

With her meagre income from general labour and the responsibility of caring for her grandmother and bedridden grandfather, she has no means to pay off the debt.

Unfulfilled promises

The looming threat of losing her home in July has left Pacharinporn deeply worried about the fate of her family, which includes her grandmother, bedridden grandfather, an aunt, and an eight year old niece. Despite numerous attempts to contact Pu, who repeatedly promised to repay the debt, no payments have been made.

Pu claimed that the pickup truck was taken by her father, who pawned it in Bangkok for 150,000 baht years ago and since lost track of the vehicle’s whereabouts. She insists she has no intention of defaulting but currently lacks the funds to pay.

Pacharinporn shared her experience as a cautionary tale, urging others not to blindly trust anyone when it comes to financial guarantees, as it can lead to severe consequences. She has appealed to prominent lawyer Patarapong Suphakorn, also known as Lawyer Aun, for assistance.

Pu confirmed to reporters that she had indeed asked Pacharinporn to co-sign for the truck loan. She initially managed to pay the monthly instalments of 8,000 baht until she encountered financial difficulties, leading to missed payments and the eventual court order for vehicle seizure and additional payments.

She stressed that she did not intend to shirk her responsibilities and would repay the debt if she could, reported KhaoSod.