Eleven individuals involved in exorbitant interest rates on loans were arrested in Dien Chau.

Under the direct guidance of the Provincial Police Director and the Head of the Provincial Police Investigation Agency, the Dien Chau District Police (Nghe An province) have successfully cracked a case, arresting 11 individuals in 11 separate incidents for criminal offenses."Usurious lending in civil transactions""; numerous related items were seized.

Police officers from Dien Chau district inspect evidence seized in a special case. Photo: Hong Ngoc

Previously, through intelligence gathering, the unit determined that from mid-2021 to the present, the complex situation of the Covid-19 pandemic in Nghe An province in general, and Dien Chau district in particular, has significantly affected the lives and production and business activities of many people. Taking advantage of people's financial needs, these individuals have been lending money at exorbitant interest rates, many times higher than the legal limit, to gain illicit profits. Some people have fallen into dire straits and are unable to repay their debts. When it's time to pay interest or principal but they don't have the money, the perpetrators go to their homes or call to threaten them, disrupting local security and order.

In response to the aforementioned situation, the Dien Chau District Police established a special task force, concentrating their efforts and implementing a comprehensive set of operational measures, gathering relevant documents and evidence to combat and arrest those involved in "loan sharking" activities.

During the investigation, the task force encountered many difficulties because loan sharks often operate under the guise of financial support companies or pawnshops, offering loans with very quick procedures and interest rates calculated separately, not recorded in loan contracts.

Furthermore, some people have limited awareness and are intimidated by loan sharks, so they do not report the crimes. In addition, the penalties for usurious lending are too lenient and not deterrent enough, so perpetrators take advantage of the situation to commit these crimes.

However, with a resolute spirit in combating crime, after a period of investigation and determining that the time was ripe, from April 21, 2022 to May 9, 2022, the Dien Chau District Police successfully cracked the case, arresting 11 individuals in 11 separate cases for the crime of "usurious lending in civil transactions"; seizing 12 mobile phones and numerous documents and contracts related to the lending activities of the suspects.

Eleven suspects at the Criminal Investigation Department of Dien Chau District Police. Photo: Hong Ngoc

During the investigation, authorities determined that from mid-2021 until the time of their arrest, the 11 suspects had lent money to many people totaling approximately 30 billion VND, with interest rates ranging from 3,000 VND to 5,000 VND per 1,000,000 VND per day (equivalent to 108% to 180% per year); earning illicit profits of over 8 billion VND.

Currently, the Dien Chau District Police are continuing to expand the investigation into this case.