Police in HCM City have cracked down loansharking and targeted 600 lenders.

Adverts for black market loans can be found everywhere

At the press conference on November 1, Senior Lieutenant Colonel Nguyen Quang Thang said that since early 2018, 4,086 criminal offences had been recorded and 3,428 criminals were arrested. Loansharking in the city is a major issue.

Adverts for black market loans can be found everywhere. Loan sharks use motorbike instalment loans as the disguise or keep the borrowers' ID cards and household registration books. When the borrowers fail to repay the loans or interest on time, they are threatened or assaulted.

Thang said they had increased inspections at pawnshops, debt collecting companies and compiled a list of 600 loan sharks as well as collecting evidence to curb the problem. 

HCM City People's Committee also proposed to ban debt collecting companies since there is evidence that some companies are working with criminal gangs. If a proper contract is made, both sides should bring the case to court to settle problems.

If it is too difficult to ban debt collecting companies, the HCM City authorities suggested issuing more regulations to tighten monitoring and limiting their operation. The police should have a list of loan company employees to ensure that the borrowers' relatives will not be bothered.

By the end of 2017, HCM City had 65 registered debt collecting companies valued at VND374bn (USD16m) in chartered capital.

Dtinews