Answer VTC News, a lawyer said that this incident can be said to be shocking because it is quite rare and the amount to be paid compared to the initial amount to be used is too large.
” This makes many people think that it is impossible to have such an interest rate because the law does not allow the “mother’s father” interest like that. There may be confusion, errors or misunderstandings in this transaction. “, the lawyer said.
However, this lawyer admits that now banks all have interest rate calculation software and publicly disclose interest rates according to the regulations of the State Bank according to each stage, so mistakes are rare.
Surely the customers will ask the bank to explain how the interest is calculated over the years. And to conclude on the legal basis of the 8.8 billion VND figure, it is necessary to clarify all the terms in the contract to see what interest rate the two parties agreed on.
From a legal point of view, the lawyer analyzed: ” The interest rates of credit institutions may be higher than the interest rate limit in the Civil Code but must still be within the limits according to the law on credit institutions and determined by the State Bank.
In case credit institutions apply interest rates that exceed the limit or violate the lending operation, depending on the nature and severity of the violation, depending on the consequences, the violator may be subject to administrative penalties or prosecuted for criminal liability. Conversely, if the violation belongs to the customer, the customer also has to bear the penalty. “.
The case of using a credit card of 8.5 million VND and having to pay over 8.8 billion VND after 11 years is causing a stir in public opinion. (Illustrative image)
Meanwhile, according to financial expert – economist Nguyen Tri Hieu, to know which side is right, which side is wrong, and whether the debt of a few million VND turns into over 8.8 billion VND after 11 years is accurate or not, it is necessary to check information from files, contracts between the two parties.
“For a long time, the customer does not pay the debt, but the bank can present such a large debt as it is now may be due to the bank’s calculation method, including compound interest, penalty interest. The penalty interest is usually very high, up to 150%, causing the customer’s initial debt to be very high. Now it cannot be affirmed that the figure of 8.8 billion VND is unreasonable, to conclude accurately, it is necessary to wait for the opening files, contract between the customer and Eximbank Quang Ninh branch” , said Assoc. Prof. Dr. Nguyen Tri Hieu.
Mr. Phan Hoang Quan, an expert in personal financial planning at FIDT Joint Stock Company, analyzed that interest rates in each period, late payment fees in each period, and other fees are different in each period and also different for each type of card, each bank.
In principle, the bank will calculate the interest rate by closing the credit balance once a month at the time of the statement. If the customer is late in payment compared to the statement date, the bank will calculate the interest rate based on the total debt spent on the card.
After the statement date (next month’s cycle), the debt balance is still accumulated, including principal, overdue interest, interest on unpaid money, late payment fees.
When granting credit cards to customers, banks also clearly stipulate the interest rates and associated fees. In which, the overdue debt will be calculated at 150% compared to the normal debt.
For example, normal debt, unpaid debt at VND 100 million, an interest rate of about 5% is VND 5 million. The remaining VND 95 million the bank accepts continued lending with interest rates from 20-45% per year depending on each bank.
However, if the customer is overdue, the interest rate will increase to 150%.
Therefore, the figure of 8.8 billion VND can be formed due to the interest rate calculation according to the monthly cycle, the revolving cycle, and the cumulative sum. In addition, the interest rate of credit cards is inherently high compared to other loans (unsecured loans), accompanied by overdue interest rates at 150%, along with other fees such as annual fees including late payment fees, SMS Banking fees, etc.
Regarding the case of the customer H.A. in Quang Ninh, earlier, Eximbank affirmed that the method of calculating interest, fees is entirely in accordance with the agreement between Eximbank and the customer according to the card opening file on March 15, 2013, with the customer’s full signature (stipulating fees, interest clearly regulated in the Issuance Fee Schedule, the card usage has been publicly posted on Eximbank’s website).
