Fierce fight against 'black credit' in Nghe An

Solved many major cases

Recently, the authorities have continuously dismantled many large-scale "black credit" lines. Typically, in the early morning of December 15, 2021, Nghe An Police dismantled an inter-provincial loan sharking line, initially arresting 52 subjects and determining the amount of money transacted through this line to be more than 1,000 billion VND with about more than 10,000 victims. The highest interest rate is 5,000 VND/million/day, equivalent to nearly 200%/year.

Nghe An Provincial Police simultaneously arrested and searched 51 Tan Tin Dat agents in 28 provinces and cities across the country. Photo: Binh Minh

To break up this ring, Nghe An police mobilized nearly 500 officers and soldiers to arrest and search 51 locations, which are representative offices of Tan Tin Dat Finance Company in 28 provinces and cities across the country. Tan Tin Dat Finance Company, directed by Nguyen Sy Dung (born in 1982), residing in Ha Huy Tap Ward (Vinh City), is a financial company under the guise of a loan shark with dozens of offices in about 30 provinces and cities across the country.

Arresting subjects at Tan Tin Dat's dealership in Nghe An province. Photo courtesy of Xuan Bac

Previously, in July 2021, Nghe An police also dismantled a loan sharking ring disguised as a business, with a loan amount of more than 500 billion VND. According to the investigation of the authorities, this ring was divided into many groups led by many subjects.

These groups have dozens of establishments and branches in many places in Nghe An and other provinces. In Nghe An alone, the establishments of the above groups are present in 11 districts, cities and towns. In Ha Tinh province, there are 8 establishments, in addition, there are other establishments in Kon Tum, Quang Binh and Nha Trang provinces...

These establishments operate in the form of lending to individuals and businesses at an interest rate of 3,000 - 8,000 VND/1 million/1 day and require borrowers to write a paper to sell collateral, or mortgage assets (motorbikes, cars, land titles, etc.) at an interest rate of 2,000 - 4,000 VND/1 million/1 day. Tens of thousands of people across the country have borrowed money from these establishments, the estimated amount is up to more than 500 billion VND.

Police conduct a search at a financial services company. Photo courtesy of Xuan Bac

In case the borrower does not pay interest as required or does not pay on time, this group of subjects will continuously use threats and intimidation. After consolidating the documents, on July 11, 2021, Vinh City Police coordinated with Ha Tinh Provincial Police, professional departments and police of districts and towns: Dien Chau, Yen Thanh, Cua Lo Town, Quynh Luu, Hoang Mai Town, Quy Hop, Nam Dan, Tan Ky, Do Luong... to simultaneously search 35 establishments which are financial companies and pawn services of the above groups, arresting 44 subjects.

Implementing Directive No. 12 dated April 25, 2019 of the Prime Minister on strengthening the prevention and fight against crimes and law violations related to "black credit", Nghe An Police have simultaneously launched a campaign to sweep, conduct general inspections, and rectify law enforcement of pawnshops and financial service businesses in the entire province. After more than 2 years of implementation, the entire province has successfully broken 96 special cases and cases; arrested 163 subjects for the act of "Lending at high interest rates in civil transactions", clarified the loan amount of more than 600 billion VND, illegally profited hundreds of billions of VND.

However, according to the authorities, the situation of crimes and law violations related to black credit is still potentially complicated. In particular, due to the impact of the Covid-19 epidemic, people facing economic difficulties, having the need to live, restore production and business but not meeting the bank's loan requirements, tend to seek informal sources of loans, including "black credit" to borrow money.

Focus on low-income groups, heavily affected by the epidemic such as workers, seasonal workers, small businesses, unemployed people, teenagers... Many people have money while business investment is difficult, so they use it forloan shark.

Subject Bach Thi Sen residing in Con Cuong district was prosecuted for loan sharking. Photo: Khanh Van

It is worth noting that currently, not only in the city and central areas, "black credit" has also appeared in mountainous areas. Typically, in January 2021, the authorities initiated a case and prosecuted Bach Thi Sen (born in 1969), residing in Bong Khe commune (Con Cuong) for the act of "Lending high interest rates in civil transactions". Grasping the needs of local people, Sen organized loans for many people of nearly 1 billion VND with high interest rates of 3,000 - 5,000 VND/1 million/1 day, illegally profiting nearly 200 million VND.

Or on August 28, 2021, Ky Son District Police presided over and coordinated with Muong Ai Border Guard Station to arrest a subject, Deputy Head of Muong Tip Commune Health Station, for the act of usury in civil transactions, clarifying the amount of usury loans of more than 700 million VND, illegal profits of 500 million VND.

Some subjects also lend money to students at an interest rate of 240%/year (equivalent to 7,000 VND/1 million/day), 12 times higher than the permitted rate, such as Nguyen Van Doan (born in 1997), residing in Tan Thanh commune (Yen Thanh). During the period from May to July 2021, Doan carried out loan sharking with about 50 local people, mainly students, with a total amount of about 2 billion VND, illegally profiting about 150 million VND.

Subject Nguyen Van Doan and evidence. Photo courtesy of An Phu

The debt collection methods of criminals related to "black credit" activities are also extremely aggressive and reckless with many forms such as threats, mental intimidation, property extortion, posting photos of debtors on Zalo, Facebook... affecting social order and safety.

Strictly handle

It is forecasted that in the coming time, "black credit" operators, in addition to using traditional methods, will increase the use of the internet and management software to carry out and conceal their crimes; use high technology and social networks to solicit and entice people to borrow money with sophisticated and cunning tricks such as hiding under the guise of businesses, lending online, borrowing through applications or creating accounts, associations and groups on social networks (Zalo, Facebook) to solicit people in need of borrowing money.

In addition, these subjects also take advantage of the greed of people with idle money and the need to invest in business to call for capital mobilization, multi-level marketing, virtual currency on cyberspace, promising to pay unusually high interest rates; or taking advantage of social security programs, financial support programs for people, these subjects can collude with relevant officials to defraud and appropriate assets in the form of borrowing money...

Police forces seized many pieces of evidence and materials related to the 1,000 billion VND illegal credit line. Photo: Binh Minh

To improve the effectiveness of crime prevention and combat and law violations related to "black credit" and ensure security and order in the area, on December 13, 2021, the People's Committee of Nghe An province issued Document No. 9721/UBND-NC directing sectors and localities to strengthen the fight against this type of crime. In particular, it requires enhancing the responsibility of leaders in leadership, direction, and proactively implementing solutions to prevent and combat crimes and law violations related to black credit in accordance with new methods and tricks of criminals and developments of the Covid-19 pandemic.

People's Committees at all levels, political and social organizations coordinate with banks and relevant departments and branches to promptly resolve social security issues during and after the Covid-19 pandemic. At the same time, promote the introduction of official lending channels; promote the development of savings, credit, and microfinance systems; support access to capital sources to find solutions, contributing to limiting people with legitimate borrowing needs, restoring production and business from having to resort to "black credit".

Nghe An Provincial Police simultaneously arrested and searched 51 Tan Tin Dat agents in 28 provinces and cities across the country. Photo courtesy of Trong Dai

The Provincial People's Committee also requested the authorities to tighten the management of security and order related to "black credit" activities; thoroughly revoke or propose to revoke the operating licenses of debt collection service businesses; have strict handling measures for pawnshops; lending service businesses; financial businesses operating without a license or disguised to operate "black credit".

Research, deploy, and propose measures for State management, prevention, and combating “black credit” activities on cyberspace and issues arising in relation to the management of capital contribution and investment in lending activities by foreigners in the area. Closely manage and monitor the number of subjects with conditions, capabilities, and manifestations of criminal activities related to “black credit” for prevention.

Speed ​​up the investigation and strictly handle cases related to this activity. In addition, propaganda work must be one step ahead, associated with specific cases and incidents that are easily accessible to the people, warning early about new methods and tricks of "black credit" activities that may occur in the area.

On February 15, 2021, the People's Committee of Nghe An province continued to issue Official Dispatch No. 44/CD-UBND on strengthening security and order before, during and after the Lunar New Year 2022. In particular, it requires functional agencies to focus on directing the fight against and suppressing all types of crimes, especially dangerous criminal crimes, organized activities, "black credit", protection, debt collection, debt collection for hire... contributing to maintaining security, order and social safety.