A report recently submitted by the HCMC People’s Committee to the Ministry of Finance noted that debts are civil or contractual relationships, so disputes should be resolved through negotiation or legal action, and decisions should be executed by the government. judgment issuing body or bailiffs.

The legalization of debt collection services inadvertently created a loophole for some businesses to come to terms with local criminals and gangs, endangering public order and safety, he said.

Many criminals hide behind the facade of legitimate loan or debt collection services to engage in loan sharking and generate dishonest profits. If debtors do not pay on time, these companies often employ people with criminal records to intimidate, inflict economic loss or defame victims and their families.

The demand for these loan sharks Tracks people who take out quick loans without having any assets to put as collateral, or those who need money for illegal activities such as gambling or drug addiction, the report adds.

Senior Lt. Col. Nguyen Dang Nam, head of the HCMC Criminal Police Department, said the city has 67 debt collection companies.

There are strict regulations on the qualifications and ethical behavior of the personnel of this company, but most of the debt collection companies registered in Vietnam have committed violations since they started operating, showing signs of collusion with gangs or organizing crowds in front of businesses or private homes of debtors. Nam told local media.

“Most of these companies mainly target relatives of debtors. Usually, the debtors themselves would have fled,” he added.

However, some experts fear that the debt collection ban leaves less protection for lenders.

“Debt collection does not need to be prohibited, but a legal framework should be established for lender-borrower relationships. For example, it should specify the protective mechanisms that can be used when the debtor does not meet its obligations. bonds, ”said economist Vu Dinh. Anh told local media.

Other experts have suggested that if the government were to ban debt collection, it should carefully consider the impacts and issue a roadmap for licensed companies to phase out and turn to other companies.

Incomplete statistics from the Ministry of Public Security reveal that more than 7,600 loan-related crimes have been recorded in Vietnam in the past four years, affecting both lenders and borrowers.

They include 56 murders in addition to intentionally inflicting injury, theft, forcible seizure of assets, frauds and scams.

Usurious loan often involves the collection of debts by thugs and thugs. The Criminal Police Department currently oversees 124 gangs with 831 individuals involved in loan sharking crimes.

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