Vietnam: Finance companies carrying out consumer lending activities shall be allowed to open consumer credit counseling points

According to Circular No. 43/2016/TT-NHNN of the State Bank of Vietnam, consumer credit counseling points are specified as follows:

- Finance companies carrying out consumer lending activities shall be allowed to open consumer credit counseling points at the place where consumer goods and services are supplied to advise and promote consumer credit lines, collect and receive information and demands for loans from customers in order to facilitate consumer lending operations. Finance companies shall not be allowed to perform operations other than those stipulated in the previous paragraph at any consumer credit counseling point.

- Finance companies shall be required to enter into a contract to open their consumer credit counseling points with consumer commodity or service suppliers having their business facilities.

-  Finance companies shall assume responsibility for operating these consumer credit counseling points and ensuring information about consumer credit lines extended to customers at such points

- Within a period of 5 (five) first days of the beginning of each quarter, finance companies must prepare a quarterly written report on the list of consumer credit counseling points which have already been established or closed within the territory of a province or city for submission to the Banking Inspection and Supervision Departments or the State Bank branches of cities or provinces where these finance companies open or end operations of their consumer credit counseling points.

View internal rules at Circular No. 43/2016/TT-NHNN of the State Bank of Vietnam, effective from March 15, 2017.

- Thanh Lam -

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE