Prime Minister directs to push back black credit and loan sharking

The Prime Minister has just issued Directive 12 on strengthening the prevention and fight against illegal credit. According to the Government's assessment, illegal credit in many localities has affected security and order with very sophisticated and complicated tricks.

These subjects take advantage of telecommunications networks, the Internet, and disguise themselves as businesses with financial lending functions, debt collection services, and pawnbroking, creating a cover to deal with authorities to lend money without collateral. They conduct financial business, contribute capital, and contribute business assets with very high interest rates, 100-300%, even up to 700% per year, to make illegal profits.

To combat this situation, the Prime Minister requested the Ministry of Public Security to direct the police of provinces and cities to inspect pawnshops, debt collection services and other businesses that show signs of usury and debt collection. At the same time, tighten the issuance of certificates and strengthen management and inspection of pawnshops and debt collection shops; revoke certificates of security and order eligibility for establishments that violate the regulations.

The Ministry of Public Security is required to launch peak attacks and suppress crimes nationwide and in cyberspace related to illegal credit activities, in conjunction with the fight against and eradication of gambling rings and fraud to appropriate assets through forms of capital mobilization, participation in savings and credit associations, etc.

Regarding the State Bank, the Prime Minister directed to strengthen propaganda, promote maximum mobilization of idle capital among the people; promote online lending and payment services and simplify lending procedures so that all people can easily access legal loans.

The State Bank issues or advises the Government and the Prime Minister on policies to diversify loan types and banking products and services; develop financial companies, microfinance institutions... to meet people's borrowing needs.

At the same time, this agency needs to promote the maximum mobilization of idle capital among the people, promote the potential and internal strength of the economy; promote the application of science and technology, and develop online lending and payment services.

Tightly control pawnshop and debt collection businesses

The Prime Minister also assigned the Ministry of Planning and Investment to strictly control business registration, pawnshop and debt collection service business households, and coordinate with the police force in granting certificates of eligibility for security and order.

The Prime Minister requested the People's Committees of provinces and cities to direct and promulgate social security policies, create jobs for workers, prevent black credit and illegal acts, social evils and crimes.

Local leaders and agencies and units mobilize people to proactively detect and prevent subjects from distributing, posting leaflets, and painting advertisements related to high-interest loans; debt collectors with acts of dumping dirt and waste, causing insecurity and disorder. Remove and erase leaflets, billboards posted or hung on walls, electric poles, trees, etc. about financial loans and pawning, affecting urban aesthetics, traffic safety and society.

People's Committees of centrally-run provinces and cities direct business registration agencies to issue business and household business registration certificates in accordance with regulations; and revoke business licenses of black credit lending establishments.

Prohibit civil servants from contributing capital, mobilizing capital, brokering, covering up, and assisting in illegal lending, lending at high interest rates, establishing businesses, financial households, pawnshops, debt collection... that violate the law. If discovered, violators will be severely punished.