VietNamNet Bridge – On May 9 police in Sa Dec City accosted Nguyen Van Thu at a car wash in Ward 1 and seized notebooks with records of his loans, more than 400 deposit contracts and identity documents and 3,000 flyers and 700 leaflets for loans.

Ho Van Tram of Nuoc Tre Village in Quang Ngai Province’s Tra Tho Commune said he was forced to pay VND300 million after his son had borrowed VND100 million from a loan shark. Photo courtesy of Nguoi Lao Dong (The Labourer) newspaper.

They then raided his house in Tan Quy Dong Ward in Sa Dec City, where they found another 150 contracts, dozens of land use permits and other documents.

The police arrested him on charges of being a loan shark.

Six people linked with Thu were also arrested, and all have admitted to lending money to students and small traders at interest rates of up to 20 per cent a month.

Similarly, in Can Tho City, police discovered a group of people from Ninh Binh and Dak Nong led by Phan Van Thiem involved in an usury ring.

They seized VND52 million in cash along with many documents allegedly indicating usury and weapons possibly used for debt collection from a house in An Thoi Ward, Binh Thuy District.

The police said more than 110 people, mostly poor or small entrepreneurs, had borrowed money from this group.

Though the interest rate would be agreed at 10 per cent a month, borrowers were often forced to pay 20 per cent, failing which they would be threatened, a victim said.

Nguoi Lao Dong (The Labourer) newspaper has reported that usury is a big problem in the Mekong Delta and central provinces.

Quang Ngai in the central region is another province where many locals have fallen prey to loan sharks.                    

Ho Van Tram, 60, of Nuoc Tre Village in Tra Tho Commune said he had received compensation of VND770 million for his land that had been taken over for building the Nuoc Trong Dam last September.

Though he had planned to share a part of the money with his six children, he was unable to do so because he had to pay off the debts run up by one of them.

A group of strangers had arrived at his house to demand VND300 million in payment for VND100 million his son had borrowed four or five months earlier.

“Since they threatened to kill my family and burn my house, I had to pay.”

Ho Van Khanh, 30, a resident of Tra Tho Commune’s Nuoc Biec Village, had also received compensation and was also preyed upon by loan sharks.

He often borrowed from a loan shark, VND5-10 million at a time to buy household necessities.

“I don’t know how many times I had borrowed but they told me to repay more than VND400 million,” he said.

“My parents only gave me VND50 million to pay the debt.”

Ho Tan Vu, chairman of the Tra Tho Commune People’s Committee, said 158 families had been paid compensation for the Nuoc Trong Dam project, and suggested that most of them were saddled with high debts at very high interest rates.

Source: VNS