Nghe An: Launching an attack on black credit across the province

On January 5, 2019, Nghe An Police coordinated with relevant departments to conduct a general inspection of pawnshops; licensed or unlicensed financial businesses and individuals currently operating in the area, resolutely and strictly handling all violations related to illegal credit activities.

In Nghe An province, there are currently 113 pawnshops and 102 financial service businesses. Photo: Tam Khoi Cuong

In Nghe An province, there are currently 113 pawnshops and 102 financial service businesses with signs of suspected illegal credit activities, of which in Vinh city there are 60 pawnshops and 71 financial service businesses.

In recent times, pawnshop and black credit lending business activities in Vinh City in particular and Nghe An Province in general have been quite complicated. Emerging is the situation of some establishments hiding under the guise of pawnshop and financial services to organize unsecured lending activities, financial support with quick procedures, high interest rates, dozens of times higher than the level permitted by law.

This leads to debt collection, debt collection for hire, threats of mental terrorism, throwing dirty substances into debtors' houses, beatings, kidnappings, and physical and mental pressure to collect money, causing panic among the people.

Faced with the situation of "black credit" activities affecting local security and order, on January 5, 2018, implementing the direction of the Provincial People's Committee, Nghe An Provincial Police coordinated with the Department of Planning and Investment, the State Bank, and the Provincial Tax Department to establish 2 delegations with 40 interdisciplinary teams to simultaneously conduct surprise inspections and publicly disclose all pawnshop and financial support service businesses in the area.

The delegation focused on establishments with signs of suspected illegal credit activities, signs of violations in business activities, and activities directed and operated by criminals...

The inspection work mainly reviews and checks legal documents on establishment, organization of activities, records and contracts reflecting borrowing or mortgaging activities, loan interest rates, closely grasps the personal identities of facility owners and employees, proceeds to seize and seal documents and objects related to illegal activities, especially illegal credit activities such as books, computers, mobile phones, etc.

A group of pawnbrokers with signs of loan sharking have just been arrested by Vinh City Police. Photo: Tien Hung

With the determination to ensure security and order for people to enjoy a peaceful and happy Tet holiday, Nghe An Police have been synchronously implementing professional measures, strengthening coordination with all levels and sectors to continue to inspect and strictly handle all violations, resolutely not allowing "black credit" to run rampant, affecting security and order, increasing crime...

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