How is the crime of usury in civil transactions punished?
(Baonghean.vn) - Ms. Nguyen Hong Ha, residing in Vinh city, asked: What is usury? How is the crime of usury in civil transactions handled?
Reply
- Article 468 of the 2015 Civil Code stipulates the loan interest rate agreed upon by the parties:
“1. In case the parties have an agreement on interest rate, the agreed interest rate shall not exceed 20%/year of the loan amount, unless otherwise provided by other relevant laws. Based on the actual situation and upon the proposal of the Government, the Standing Committee of the National Assembly shall decide to adjust the above interest rate and report to the National Assembly at the nearest session.
In case the agreed interest rate exceeds the maximum interest rate prescribed in this clause, the excess interest rate shall be invalid.
2. In case the parties have an agreement on interest payment, but do not clearly specify the interest rate and there is a dispute about the interest rate, the interest rate shall be determined at 50% of the maximum interest rate prescribed in Clause 1 of this Article at the time of debt repayment".
- According to Point d, Clause 3, Article 11, Decree No. 167/2013/ND-CP of the Government regulating administrative sanctions for violations in the fields of security, order, and social safety; prevention and control of social evils; fire prevention and fighting; prevention and control of domestic violence, the act of "lending money with collateral, but the lending interest rate exceeds 150% of the basic interest rate announced by the State Bank of Vietnam at the time of lending" is subject to a fine of VND 5,000,000 to VND 15,000,000.
- Article 201 of the 2015 Penal Code stipulates the crime of usury in civil transactions as follows:
“1. Any person who, in a civil transaction, lends money at an interest rate five times higher than the highest interest rate prescribed in the Civil Code, illegally profits from VND 30,000,000 to less than VND 100,000,000, or has been administratively sanctioned for this act or has been convicted of this crime, but has not had his/her criminal record expunged, but still commits the violation, shall be subject to a fine of VND 50,000,000 to VND 200,000,000 or to non-custodial reform for up to 03 years.
2. Those who commit the crime of illegal profit from 100,000,000 VND or more shall be subject to a fine from 200,000,000 VND to 1,000,000,000 VND or imprisonment from 06 months to 03 years.
3. The offender may also be fined from VND 30,000,000 to VND 100,000,000, banned from holding positions, practicing a profession or doing certain jobs from 01 to 05 years".
Thus, when the interest rate is 5 times or more higher than the highest interest rate prescribed by law, it constitutes the crime of usury under criminal law.
Depending on each specific case, the act of lending at high interest rates will be subject to administrative sanctions according to Point d, Clause 3, Article 11, Decree 167/2013/ND-CP or criminal prosecution according to Article 201, Penal Code 2015.
