130 people fell into the black credit trap of a group of young people
Huy's group lends at an interest rate of 5,000 VND for one million in one day, equivalent to more than 180% per year.
Ha Tinh Police (Ha Tinh) said they have just arrested Phung Quang Huy (25 years old), Hoang Huy Hoang (22 years old) and Tran Dai Hai (27 years old, all residing in Hai Phong) to investigate the act of loan sharking in civil transactions, according to Article 201 of the 2015 Penal Code.
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Three suspects at the investigation agency. Photo:CA |
According to investigation documents, Huy, Hoang and Hai are big shots in Hai Phong, and have been doing illegal credit business in Ha Tinh city since June.
This group distributed advertising leaflets in many districts, instructing anyone who needs to borrow money to just call or come directly to contact with an interest rate of 5,000 VND for 1,000,000 VND per day (equivalent to 182.5% per year). The repayment period for both interest and principal for a loan package is 40-50 days.
Authorities allege that 130 people in Ha Tinh have borrowed money and paid high interest to Huy’s group. Those who fail to pay on time will have their lives threatened.
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Weapons seized at the black credit shop owned by Huy. Photo:CA |
Searching Huy's premises, police seized nearly 200 loan documents, three-section batons, pepper spray, knives and swords of all kinds...
Ha Tinh currently has more than 300 establishments registered to operate pawn services and display illegal financial (credit) loan signs. These establishments often operate loan sharking and debt collection activities.
