Authorities busted a loan sharking ring that used "terrorist" tactics for debt collection.
In cases of late payments, these individuals make threatening phone calls, post photos on social media, or may throw paint or other dirty substances at the house to intimidate and pressure the person into paying.
On June 17th, the Criminal Police Department (Da Nang City Police) announced that they had dismantled and arrested individuals involved in a usurious lending ring.
According to the police, this group was led by Vu Duc Chung (39 years old, residing in Nam Dinh City, Nam Dinh Province), with two accomplices: Ngo Quang Au (24 years old, residing in Krong Pa District, Gia Lai Province) and Nguyen Dac Cuong (24 years old, residing in Tam Ky, Quang Nam Province).
All three rented apartments in Son Tra and Ngu Hanh Son districts to use as a front for their usurious lending operations.
Although Chung was the ringleader, he was rarely present in Da Nang, instead often hiring Au, Cuong, and several other individuals to carry out the usurious lending activities.
The modus operandi of this group is to post loan requests on social media groups or to贴 loan advertisements in public areas with large crowds.
When someone asks to borrow money, the group proceeds with verifying their address, requiring the borrower to take photos and provide some personal documents such as their Citizen ID card, household registration book, driver's license, marriage certificate, etc., which the perpetrators keep.
Regarding interest payments, borrowers pay daily, and the lenders limit cash payments, primarily transferring funds via bank accounts. Notably, to legitimize and conceal their usurious lending practices, these groups require borrowers to sign promissory notes or purchase assets such as motorcycles and mobile phones on installment plans.
In cases of late payments, these individuals make threatening phone calls, post photos on social media, or may throw paint or other dirty substances at the victim's house to intimidate and pressure them into paying. Their interest rates are 30% for 25 days and over 400% per year.
Using this scheme, from the beginning of 2024 until now, the group has lent money to 300 people in Da Nang with a total amount of approximately 4 billion VND, earning illegal profits of over 1.2 billion VND.
During an emergency search of the suspects' temporary residences in Da Nang, police seized 230 loan application files, along with other related evidence used in their lending activities.
