return icon Vietnamnet.vn

Five people arrested in HCM City loan shark apps bust worth $4.2 million

HCM City Police have broken up a payday loan ring headed by Chinese nationals, with some 60,000 debtors suffering cutthroat interest rates of 1,095 per cent per year.

Five suspects arrested in the high-tech loan shark ring. — Photo courtesy of HCM City Police

The police on Monday said they had arrested five suspects, including Chinese nationals Tu Long, 28, and Yuan Deng Hui, 27, as well as Chề Ngọc Trinh, 25, from Đồng Nai Province, Lâm Cảm Quyền, 31, from HCM City’s District 5 and Lài Thế Hùng, 26, from HCM City’s Bình Tân District, to investigate the crime of "usury in civil transactions".

Earlier, the police detected that three companies named Vinfin, Beta and Đại Phát were owned by two Chinese people – 39-year-old Jiang Miao and Niu Li Li (unknown identity) – yet were registered to other people residing in HCM City.

These companies, headquartered in Bình Tân District, offer cash advances via smartphone apps called Vaytocdo, Moreloan and VD online, at absurdly high rates.

In late 2019, the police started inspecting the companies’ offices, working with 40 people, mostly Vietnamese, and found that these companies were divided into different units of management, interpretation, dossier reviewing and debt collection with various tactics to lend money at exorbitant rates. 

Any first-time customer can take a loan of up to VNĐ1.7 million (US$72) via app “Vaytocdo” however, they actually receive only VNĐ1.4 million ($59), the rest is service fees. Within eight days, the customer will have to pay both principal and interest of more than VNĐ2 million ($85). In case of late payment, he will be fined VNĐ100,000 ($4.25) per day.

For two other apps – Moreloan and VD online – a first-time borrower can “theoretically” borrow VNĐ1.5 million ($64) yet receive only VNĐ900,000 ($38). Within a week, the debtor has to pay the principal of VNĐ1.5 million. Each day of late payment will be charged interest rates of 2 to 5 per cent. It means that debtors are forced to pay the interest rate of up to 3 per cent per day, equivalent to 21 per cent per week, 90 per cent per month and 1,095 per cent per year – five times higher than the regulated loan rate. Any borrower able to pay off by due dates is allowed to take bigger loans of up to VNĐ2.8 million ($119).

For those who are unable to clear their debts, their friends and relatives will be threatened by debt collectors using contacts hacked when they register for loans.

Many debtors could not bear the pressure and had to borrow further money to cover the debts.

According to the police, there are 60,000 people in all 63 localities caught in these traps with the total loan amount of VNĐ100 billion ($4.2 million).

The case is under further investigation. — VNS

Deputy PM orders investigation into suspected loan shark in Thai Binh

Deputy PM orders investigation into suspected loan shark in Thai Binh

Deputy Prime Minister Truong Hoa Binh has asked agencies of Thai Binh Province to look into allegations that Nguyen Xuan Duong, 49, also called Duong 'Nhuệ' and his accomplices injured a man.

MORE NEWS

Hue Festival 2022 opens with glamor show

The week-long Hue Festival 2022 was kicked off on June 25 evening by a unique art programme and Ao Dai (Vietnamese traditional gown) show.

Bach Long Glass Bridge - A news tourist attraction in Moc Chau

A glass-bottomed bridge named Bach Long (White Dragon) was recently inaugurated in Moc Chau and it has immediately become a new tourist attraction.

Vietnam among few countries totally re-open int’l tourism market

Vietnam is the only only Southeast Asian country that has reopened international tourism without any COVID-19 restrictions, the World Tourism Organization (UNWTO) said.

Foreign Ministry spokeswoman’s story of being a writer

Assistant to Minister of Foreign Affairs, Spokesperson of the Ministry of Foreign Affairs Le Thi Thu Hang says journalism not only means reporting information, but it also has the function of leading public opinion.

Another S.Korean airline resumes direct service to Khanh Hoa

An Air Seoul flight carrying 187 passengers from the Incheon international airport arrived at the Cam Ranh International Airport in Khanh Hoa Province on June 24.

Interest subsidy vs monetary loosening

Some recent reports have indicated that the monetary policy of the State Bank of Vietnam (SBV) is not in sync with the global trend.

Developers expect smoother LNG policy planning

In Vietnam, about 20 LNG-fired power projects are in the pipeline. Some of these programmes, however, have yet to identify a fuel source.

National Assembly Chairman arrives in Budapest for Hungary visit

A high-ranking delegation of the National Assembly (NA) of Vietnam led by NA Chairman Vuong Dinh Hue arrived in Budapest on June 25 afternoon (local time), beginning an official visit to Hungary.

Next Top model crowned Miss Universe Vietnam 2022

Ngoc Chau, the winner of Vietnam’s Next Top Model 2016, was crowned Miss Universe Vietnam 2022 at a grand finale held in Ho Chi Minh City on June 25 evening.

WB, FTSE Russell pledge regular coordination in upgrading Vietnam's stock market

Representatives of the World Bank (WB) and FTSE Russell have committed to further supporting Vietnam to build a sustainable stock market, particularly via regularly exchange and coordination in the market upgrading matter.

Regions, sub-regions must be linked for development

In 2004, the Politburo released Resolution No 39-NQ/TW on socio-economic development and assurance of national defense and security in the northern part and southern coastal area of the central region by 2010.

Ensuring information security for digital platforms the top priority

Deputy Minister of Information and Communications Nguyen Huy Dung stressed that ensuring information security for digital platforms must be considered the key task, inseparable from the digital transformation process.

Aircraft fuel price reaches 8-year high

The continued air petrol price increase has caused headaches to air carriers. Airfares change from day to day.

VIETNAM NEWS HEADLINES JUNE 25

Exhibition spotlights Hue’s enameled bronze art

VIETNAM BUSINESS NEWS JUNE 25

Government seeks to resolve businesses’ capital shortage
back_to_top