VN’s biggest ever illegal 'black credit' discovered

VietNamNet Bridge – More than 200 people across Vietnam have been trapped by a loan shark based in HCM City with total loans worth more than VND510 billion (US$22 million). 

Thanh Hoa, illegal 'black credit', discovered, Vietnam economy, Vietnamnet bridge, English news about Vietnam, Vietnam news, news about Vietnam, English news, Vietnamnet news, latest news on Vietnam, Vietnam

Suspects, former employees of the illegal loan shark company Nam Long, were detained. — VNA/VNS Photo


Police in the central province of Thanh Hoa and Ministry of Public Security on Thursday announced results of the initial investigation into the illegal lending, saying it was the “biggest case of its kind discovered in the country."

The illegal activities of the company came to the police’s attention about four months ago when a young man working as a debt collector for the company’s branch in the northern province of Bac Kan died at Thanh Hoa General Hospital for severe injuries inflicted by his colleagues.

It was found that a loan shark - Nam Long Finance Company - has 26 branches nationwide and was offering loans with yearly interest rates of more than 100 per cent, with some at 1,000 per cent. When borrowers are late in paying the interest, they will be threatened, harassed, assaulted and have their properties stolen by the company’s employees.

Once working for the company, employees had to commit to paying compensation of VND50-100 million (US$2,150-4,290) if they broke contracts and they were even told they would have their fingers cut off if they violated company rules.

Barbaric torture

In early July, the 19-year-old man - Nguyen Van Minh - collected debts from clients of Nam Long Company but did not transfer money to the company branch in the northern province of Bac Kan. He also stole a motorbike from the branch and then fled.

On July 9, the man was caught by other Nam Long Company employees in Soc Son District, Hanoi.

It was reported that he was taken to the company branch in Hanoi for punishment. The company employees reportedly put a bowl of rice and a bowl of excrement in front of Minh and whenever he chose the rice, he would be beaten.

On July 10, he was taken to the company branch in Thanh Hoa Province.

Minh continued being beaten black and blue until he became unconscious and then he was taken to Thanh Hoa General Hospital. His colleagues left him at the hospital after seeing him die there.

According to Thanh Hoa Police, the illegal lending group is led by Nguyen Duc Thanh, 30, residing in Cau Kho Ward, HCM City’s District 1 and Nguyen Cao Thang, 34, of Ward 15, HCM City’s District 10.

Thang is responsible for mobilising capital while Thanh is the company director running the “company business”, according to police.

Police started criminal investigations against nine suspects accused of “intentionally causing injury, kidnapping and illegal lending of loans with high-interest rates.”

Police arrested seven of the nine suspects, including Thanh, while issuing wanted notices for two suspects at large.

Source: VNS

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