Prime Minister to request strengthening actions against "usury" activities in Vietnam

Prime Minister to request strengthening actions against "usury" activities in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

On August 24, 2023, the Prime Minister issued Official Telegram 766/CD-TTg on strengthening solutions to prevent, stop, and handle usury activities.

Prime Minister to request strengthening actions against "usury" activities in Vietnam

Previously, the Prime Minister had issued many documents directing ministries, branches, and localities to strengthen prevention and fight against crimes and violations of the law related to "usury" activities.

However, recently, a number of new methods and tricks have appeared, disguised, taking advantage of high technology, and hiding in the shadows of businesses to carry out illegal lending and debt collection activities.
causing public anger and affecting security and order.

Therefore, to continue to improve the effectiveness of prevention, containment, and handling of "usury" activities, the Prime Minister has requested the implementation of the following solutions:

(1) Ministers of ministries, Heads of ministerial-level agencies, Government agencies, Chairmen of People's Committees of provinces and centrally run cities, and relevant agencies continue to drastically and effectively implement the Prime Minister's direction in Directive 12/CT-TTg in 2019; Directive 16/CT-TTg of 2023, and Official Dispatch 1201/VPCP-NC of 2023.

(2) State Bank of Vietnam

- Focus on research and urgently improve bank credit mechanisms and policies, develop the credit system, diversify loan types, and provide banking products and services with quick and convenient procedures to meet legitimate and legal loan needs to serve people's lives and consumption.

Strengthen inspection, examination, supervision, and management of the activities of credit institutions, payment intermediaries, and e-wallets so that those involved in "usury" activities will promptly handle violations according to regulations; Closely coordinate with the Ministry of Public Security to apply population data, promote the review and authentication of bank accounts, and thoroughly handle the use of "virtual" accounts for "usury" activities.

- Proactively coordinate closely with the Ministry of Planning and Investment, the Ministry of Justice, the Ministry of Public Security, and the Ministry of Information and Communications according to functions and tasks to strengthen inspection and examination of the activities of credit institutions, financial companies, businesses, and law firms; promptly detect and strictly handle violations; promote solutions to protect personal data;

Urgently research, amend, and complete relevant legal documents to improve the effectiveness of prevention and strict handling of "usury" activities.

(3) The Ministry of Public Security directs police units and localities to apply effective preventive measures, promptly detect, and strictly handle, in accordance with the law, acts related to "usury". for deterrence and general preventive education; Open peak attacks to suppress crimes and violations of law related to "usury", promptly report to the Prime Minister on implementation results and arising problems.

(5) Chairman of the People's Committees of provinces and centrally run cities

- Focus on directing, promulgating, and promptly implementing effectively mechanisms and policies on social security, building new rural areas, hunger eradication, and poverty reduction, creating jobs, and creating livelihoods for workers; Direct relevant agencies, organizations, and grassroots authorities to strengthen propaganda, dissemination, and education on the laws, methods, tricks, and consequences of "usury"; Improve the efficiency of state management at the grassroots level.

- Regularly grasp the situation, strengthen inspection and examination of the activities of financial companies, enterprises, law firms, and conditional business establishments, promptly detect "usury" activities, and strictly handle violations according to the law;

Focus on leading and directing crime prevention and control, building a movement of all people to protect national security, and building communes, wards, and towns without "usury" activities.

......

More details can be found in OOfficial Telegram 766/CD-TTg dated August 24, 2023.

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