05 Judgment applying precedence 08/2016/AL on determining and adjusting interest rates in credit contracts in Vietnam

The following is a summary of 05 judgments with the application of presedence 08/2016/AL of the Judicial Council of the Supreme People's Court that the LawNet has updated to the latest, please read for reference.

1. Judgment 06/2021/DS-ST dated 13/01/2021 on credit contract dispute

- Level of trial: First instance

- Judicial body: People's Court of Long Ho district, Vinh Long province

- Summary of the case: On December 14, 2018, the Commercial Joint Stock Bank of Vietnam signed a credit card contract with Ms. Do Thi P. Credit card usage term until December 2021 Interest rate: adjusted according to each period. In the process of using a credit card from the date of card activation until now, Ms. P has made 13 payments to the Bank. After that, Ms. P does not make any other payments to the Bank including card issuance fees, excess fees, and other late fees. Although the Bank has worked and reminded many times, Ms. P still does not pay. Due to Ms. P's breach of debt repayment obligation, on April 22, 2020, the Bank temporarily blocked the right to use the card and transferred all outstanding loans to overdue debts. The amount Ms. P still owes to the Bank as of January 13, 2021, is: 33,007,403 VND

- Court's decision: Accepting plaintiff's petition. Forcing Ms. Do Thi P to be obliged to pay to the Commercial Joint Stock Bank for the first instance up to the date of the first-instance trial a total of VND 33,007,403 of principal and interest

2. Judgment 07/2021/DS-ST dated February 8, 2021 on the dispute over the property loan contract

- Level of trial: First instance

- Judicial body: People's Court of Dam Doi district, Ca Mau province

- Summary of the case: Ms. Tran Huynh G signed a contract with Company J to buy a motorbike, the loan term is 24 months, with the interest rate: 4.1772%/month, agreed to pay the monthly installment amount capital, profit is 3,198,869 VND. Since July 22, 2020, Ms. G has not continued to pay the Company. Company J has contacted many times to ask for payment, but Ms. G deliberately evaded and failed to do so.

- Court's decision: Accepting the Company's lawsuit request. Forcing Ms. Tran Huynh G to pay Company J an amount of VND 61,671,868

3. Judgment 27/2021/DS-ST dated July 1, 2021 on credit contract disputes

- Level of trial: First instance

- Judicial body: People's Court of Tan An city, Long An province

- Summary of the case: In 2019, Ms. Phuong Thi Thanh T signed a contract with T Commercial Joint Stock Bank to use a credit card, the usage limit is: VND 30,000,000, Card interest rate: 2.6%/ month. After being granted a credit card, Ms. Phuong Thi Thanh T made transactions with a total amount of VND 55,550,000. After many times of working and reminding, Ms. Phuong Thi Thanh T still did not have goodwill to repay the debt. Because Ms. Phuong Thi Thanh T breached her payment obligation, the bank converted all outstanding balance to overdue debt, the total debt of both principal and interest was 49,331,868 dong.

- Court's decision: Accepting the lawsuit request, forcing Ms. Phuong Thi Thanh T to pay Saigon Thuong Tin Commercial Joint Stock Bank an amount of VND 49,331,868

4. Judgment 04/2020/DS-ST dated 24/08/2020 on the credit contract dispute

- Level of trial: First instance

- Judicial body: People's Court of Dak Glong district, Dak Nong province

- Summary of the case: Mr. Huynh Ngoc Ph borrowed money from Bank N, the principal amount is 250,000,000 VND, the interest rate at the time of signing the contract is 11%/year, and the interest rate on an overdue debt is 150% interest. term rate (16.5%). At the appointment, Mr. Ph only paid the Bank the interest of 13,636,986 VND, and the principal amount of 50,000,000 VND was not paid. After the Bank sued in Court, Mr. Ph had paid VND 50,000,000 of the principal, but by the time Mr. Ph had paid the debt, he had breached the commitment period for the first installment.

- Court's decision: Accepting the entire petition of Bank N. Forcing Mr. Huynh Ngoc Ph to pay Bank N, Dak Nong province the total amount of 239.967,931 VND.

5. Judgment 02/2021/KDTM-ST dated September 21, 2021 on the credit contract dispute

- Level of trial: First instance

- Judicial body: People's Court of District N, Kon Tum province

- Summary of the case: In May 2018, Joint Stock Commercial Bank signed a credit contract with Mr. Nguyen Thanh H, loan disbursement amount: 700,000,000 VND, interest rate from the date of loan to the end of July 31. 2018 is 8.5%/year. The interest rate is then adjusted periodically. Collateral: Land plot No. 51. After that, Mr. H left the locality and has not paid any principal and interest.

- Court's decision: Accepting the entire petition of the plaintiff. Forcing Mr. Nguyen Thanh H to pay the Joint Stock Commercial Bank a total of VND 1,025,766,576, both principal and interest.

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