Is the information about bad debt of borrower removed after resolving all bad debts in Vietnam?

Is the information about bad debt of borrower removed after resolving all bad debts in Vietnam? 

Pursuant to Clause 1 Article 11 of the Circular 03/2013/TT-NHNN stipulating removal of the information about bad debt of borrower:

Limitation of credit information use

1. Negative information of borrower is only used in order to make credit information product within 05 years, since such negative information ended, unless otherwise prescribed by law.

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Pursuant to Clause 1 Article 13 of the Circular 15/2023/TT-NHNN stipulating removal of the information about bad debt of borrower from 01/01/2025:

Credit information provision restrictions

1. Negative information on borrowers shall only be provided for up to 5 years from the ending date of such information, excluding other cases where the provision of such information is requested by state management authorities as prescribed by laws.

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As regulated above, bad debt information may not be immediately removed after resolving all bad debts. Instead, within a maximum period of 5 years from the date of resolving the bad debts, the customer's bad debt information will have to be removed, except in other cases as specified by regulations.

Is the information about bad debt of borrower removed after resolving all bad debts in Vietnam? - image from internet

What are rights and obligations of borrowers regarding credit information from 01/01/2025 in Vietnam?

Pursuant to Article 18 of the Circular 15/2023/TT-NHNN stipulating rights and obligations of borrowers regarding credit information from 01/01/2025 in Vietnam:

Rights and obligations of borrowers

1. Utilize their credit information prescribed in Points a, c, d, dd, e, and h Clause 1 Article 9 and Clause 4 Article 12 of this Circular once per year free of charge.

2. Use credit information products concerning themselves according to the guidelines of CIC.

3. Adequately and promptly pay fees for utilization and use of credit information services according to the regulations of CIC.

4. Carry out other rights and obligations according to the regulations of CIC and relevant laws.

As regulated above, from 01/01/2025, borrowers have following rights and obligations regarding credit information:

- Utilize their credit information prescribed in Points a, c, d, dd, e, and h Clause 1 Article 9 and Clause 4 Article 12 of this Circular once per year free of charge.

+ Information on the identification of borrowers;

+ Information on loans and other credit extension operations;

+ Information on credit cards;

+ Information on purchase and authorized purchase of corporate bonds;

+ Information on measures to guarantee credit extension;

+ Information on the off-balance sheet;

+ Borrowers may be provided with their credit information according to the guidelines of CIC.

- Use credit information products concerning themselves according to the guidelines of CIC.

- Adequately and promptly pay fees for utilization and use of credit information services according to the regulations of CIC.

- Carry out other rights and obligations according to the regulations of CIC and relevant laws.

What are rights and obligations of credit institutions in Vietnam?

Pursuant to Article 16 of the Circular 15/2023/TT-NHNN stipulating rights and obligations of credit institutions in Vietnam:

Rights and obligations of credit institutions

1. Establish information infrastructures meeting the requirements for the establishment of data and control of data provided for CIC; issue internal regulations and manage the system of credit information categories in their whole system.

2. Adequately and promptly pay fees for utilization and use of credit information services according to contracts concluded with CIC.

3. Send officials and employees to participate in courses of professional training in credit information organized or jointly organized by CIC.

4. Carry out other rights and obligations according to agreements with CIC and relevant laws.

As regulated above, credit institutions in Vietnam have following rights and obligations:

- Establish information infrastructures meeting the requirements for the establishment of data and control of data provided for CIC;

- Issue internal regulations and manage the system of credit information categories in their whole system.

- Adequately and promptly pay fees for utilization and use of credit information services according to contracts concluded with CIC.

- Send officials and employees to participate in courses of professional training in credit information organized or jointly organized by CIC.

- Carry out other rights and obligations according to agreements with CIC and relevant laws.

Note: Circular 03/2013/TT-NHNN expired and ceased to be effective from January 1, 2025. Circular 15/2023/TT-NHNN will be effective from January 1, 2025.

Best regards!