Players in Rotating Savings and Credit Associations Need to Know These Regulations

According to statistics on the electronic publication website of the Supreme People's Court, from February 2017 to January 2019, 1034 judgments regarding ho, hui, bieu, phuong were published, with the amount of broken hui ranging from tens of millions to hundreds of billions of dong. This indicates a very high risk in placing trust to earn quick profits in hui networks. Therefore, Decree 19/2019/ND-CP was introduced as the initial legal framework that regulates the organization of hui groups to protect the rights and interests of participants. Notable contents include:

- Persons aged 15 to under 18 with their own assets can be members of the hui;- The head of the hui must be 18 years or older and not fall under the cases of loss of civil act capacity, limitation in civil act capacity, or having difficulty in cognition and behavior control as prescribed by the Civil Code;- Conditions for joining the hui, withdrawing from the hui, and terminating the hui group;- The agreement on hui must be made in writing and must include all basic contents. The written agreement on hui can be notarized or authenticated if the participants in the hui request it;- Members have the right to request the hui head or the person who records and keeps the hui book to issue a receipt when contributing to the hui, receiving hui, receiving interests, paying interests, or performing other related transactions;- The interest rate must not exceed 20% per year of the total value of the hui shares to be contributed, minus the value of the hui shares already contributed, to prevent it from transforming into usury or black credit.

These are the basic regulations that participants in hui networks need to know to minimize unforeseen risks.

- Quynh Duong -

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