The Predatory Lending Problem: How Borrowers Fall Prey to Exorbitant Interest Rates

Lâm Đồng: A loan shark scandal involving a borrower being ordered to repay 4 billion VND on a 270 million VND loan

Journalist Quang Sáng from VOV Tây Nguyên reported that today, on July 1st, Mr. Phan Đình Trạc, a member of the Politburo and Chief of the Central Internal Affairs Commission, along with the delegation of National Assembly deputies from Lâm Đồng province, had a meeting with voters in Lát commune, Lạc Dương district.

In addition to answering and receiving feedback from voters on socio-economic issues, Mr. Phan Đình Trạc instructed the relevant authorities in Lâm Đồng to investigate and address the issue of loan sharks, as raised by many voters. One particular case involved a borrower who took out a loan of 270 million VND but was ordered by the court to repay the lender more than 4 billion VND.

According to voters in Lát commune, the issue of loan sharks and usurious lending has been prevalent in the area for a long time, affecting all the villages and resulting in many families losing their land and homes, with far-reaching consequences.

A typical example is the case of Mrs. Kơ Să Ka Thêm from Đạ Nghịt village, Lát commune. Due to an urgent need for money to resolve a family issue, she borrowed 270 million VND from an individual in the area. In reality, she only received 170 million VND, as the lender deducted the interest upfront. Additionally, she was forced to hand over the red book (land use right certificate) of her family’s house and land as collateral.

Mrs. Kơ Să Ka Thêm stated that although she later borrowed from a bank to repay the entire amount to the lender, she was still not debt-free. Subsequently, the People’s Court of Lạc Dương district ordered her to pay an additional 4 billion VND to the lender.

“I borrowed 270 million VND from Mrs. Hồng, but she deducted 91 million VND in interest upfront, so I only received 170 million VND in cash. Then, I borrowed 300 million VND from the bank to repay the entire amount to Mrs. Hồng. I requested her to return my red book, but the People’s Court of Lạc Dương district ruled that I must pay her 4 billion VND. I am very upset and disagree with this decision,” said Mrs. Kơ Să Ka Thêm.

Speaking at the meeting, Mr. Phan Đình Trạc, a member of the Politburo and Chief of the Central Internal Affairs Commission, stated that the voters’ opinions and suggestions were very reasonable. Regarding the issue of loan sharks in the area and the case of Mrs. Kơ Să Ka Thêm in particular, Mr. Phan Đình Trạc requested the relevant authorities in Lâm Đồng to investigate and asked the People’s Court of Lâm Đồng to review the case for any signs of criminal offenses.

“I propose that the court, especially the Party organization, instruct the Party Committee of the People’s Court to review this case for any signs of criminal offenses. With this interest rate, is there a case of loan sharking? The Provincial People’s Court must get involved, review the case file, and take action. If there are any mistakes, they must take responsibility. If there are signs of criminal offenses, the civil judgment should be annulled, and the case should be referred to the prosecuting agency for criminal handling in accordance with the law,” said Mr. Phan Đình Trạc.

In addition to directly addressing the issue of loan sharks that has caused public concern in the area, the delegation of National Assembly deputies from Lâm Đồng also listened to, answered, and received feedback from voters on various issues, including social welfare, land for production, the shortage of teachers and school supplies in remote areas, etc.

After the meeting, the delegation presented 20 gifts to poor households with especially difficult circumstances in Lát commune, Lạc Dương district, Lâm Đồng province.

Market price control following the salary increase from July 1st

According to journalist Hà Khánh from VOV-TP.HCM on July 1st, in Phước Thạnh commune, Gò Dầu district, the delegation of National Assembly deputies from Tây Ninh province, including Mr. Nguyễn Trọng Nghĩa, a member of the Politburo and Head of the Central Propaganda Department, and Ms. Hoàng Thị Thanh Thúy, Deputy Head of the National Assembly delegation of Tây Ninh province, had a meeting with voters after the 7th session of the 15th National Assembly.

Deputy Head of the National Assembly delegation of Tây Ninh province, Ms. Hoàng Thị Thanh Thúy, provided information on the outstanding results of the 7th session of the 15th National Assembly and the responses from central ministries, sectors, and local authorities to the opinions and suggestions of voters from previous contact sessions.

At the conference, voters in Tây Ninh highly appreciated the effectiveness of the National Assembly, especially the questioning and answering sessions during the meetings. They also raised concerns about high-tech fraud, cybersecurity, health insurance, market price control following the salary increase from July 1st, and expressed their delight at the official launch of the force for protecting security and order at the grassroots level.

At the meeting, Mr. Nguyễn Trọng Nghĩa, a member of the Politburo and Head of the Central Propaganda Department, informed the voters about the country’s situation over the past time, highlighting how the nation has overcome significant challenges to achieve positive results. He also emphasized that the recently approved Master Plan for the Southeast Region and the Master Plan for Tây Ninh province for the period of 2021-2030, with a vision towards 2050, have provided a clear direction for the region’s development. This will help Tây Ninh and the Southeast region overcome bottlenecks and enable locally produced goods to quickly access international and regional markets.

Mr. Nguyễn Trọng Nghĩa affirmed that the National Assembly delegation of Tây Ninh province has taken note of all the opinions and suggestions of the voters. The delegation will forward the issues within their competence to the relevant ministries and sectors for consideration and resolution.

Earlier, Mr. Nguyễn Trọng Nghĩa attended the ceremony launching the force for protecting security and order at the grassroots level at the Tây Ninh Province Martyrs’ Memorial. On the same day, he also visited and worked with the officials, public employees, and staff of the Provincial Propaganda Department of Tây Ninh.

Yên Bái voters request the review of Taica Plastic Pellet Factory’s land leveling activities, which have caused difficulties for local transportation

According to journalist Thừa Xuân from VOV-Tây Bắc, Ms. Phạm Thị Thanh Trà, Deputy Head of the Central Organization Commission and Minister of Home Affairs, along with the National Assembly deputies of Yên Bái province, had a meeting with voters in Yên Bình district.

The National Assembly delegation of Yên Bái province informed the voters of Yên Bình district about the results of the 7th session of the 15th National Assembly and the delegation’s activities during the session.

The session passed 11 laws and 21 resolutions, gave initial opinions on 11 other law projects, conducted questioning and answering sessions, considered and decided on personnel issues, socio-economic and state budget matters, and reviewed reports on the synthesis of voters’ recommendations and feedback…

At the meeting, voters in Yên Bình district expressed their joy and excitement about the successes of the session and the activities of the National Assembly delegation of Yên Bái province during the session.

The voters of Yên Bình district also raised many opinions and suggestions for the National Assembly delegation, including: reviewing the FVC factory project on Axis Road 1, which has been surveyed since October 2023 but has not received funding yet; reviewing the land leveling activities of Taica Plastic Pellet Factory, which have caused difficulties for local transportation; taking measures to repair the damaged National Highway 2D to ensure traffic safety; and proposing a special mechanism from the Central Government for tourism investment projects on Thác Bà Lake…

On behalf of the National Assembly delegation of Yên Bái province, Ms. Phạm Thị Thanh Trà acknowledged, received, and clarified additional content related to the voters’ concerns. She also assigned the delegation to synthesize and forward the issues to the National Assembly, the Government, and relevant central ministries and sectors for consideration and resolution according to the law.

On this occasion, the Vietnam National Oil and Gas Group presented a donation of 12 billion VND to support the construction of the TH&THCS No. 2 Cảm Nhân School in Cảm Nhân commune, Yên Bình district, Yên Bái province.

Also today (July 1st), Mr. Đỗ Đức Duy, Secretary of the Provincial Party Committee and Head of the National Assembly delegation of Yên Bái province, along with the delegation, had a meeting with voters in Nghĩa Lộ town.

Sơn La voters hope for early investment in the high-speed road connecting Mộc Châu to Sơn La city

According to journalist Trấn Long from VOV-Tây Bắc, this afternoon, July 1st, Mr. Nguyễn Hữu Đông, Deputy Head of the Central Internal Affairs Commission, along with the National Assembly delegation of Sơn La province, had a meeting with voters in Sơn La city.

At the conference, the National Assembly delegation of Sơn La province reported on the results of the 7th session of the 15th National Assembly and the delegation’s activities during the session.

Voters in Sơn La city expressed their joy and excitement about the results of the 7th session of the 15th National Assembly and the achievements of Sơn La city over the past time.

To promote socio-economic development in the coming time, voters hope that the National Assembly, the Government, and the Ministry of Transport will pay attention to and soon invest in the high-speed road connecting Mộc Châu to Sơn La city, as well as expand National Highway 6 from the twin roads of Sơn La city to Hát Lót town, Mai Sơn district, in the medium-term public investment plan for the period of 2026-2030…

After listening to the opinions and suggestions of the voters, the National Assembly delegation of Sơn La province provided answers within their competence and synthesized the proposals to forward to the relevant central ministries and sectors.

Speaking at the conference, Mr. Nguyễn Hữu Đông, Deputy Head of the Central Internal Affairs Commission, provided a quick overview of some outstanding achievements of Sơn La province in various fields, including politics, economics, culture, society, national defense, and security, as well as party building, in the first six months of the year. From the beginning of the year until now, the province’s total production value is estimated at over 14,600 billion VND, an increase of 0.6% compared to the same period last year; tax revenue is estimated at over 1,400 billion VND, reaching 34% of the target assigned by the Central Government. The National Assembly and the Government have agreed to assign Sơn La province as the managing agency for the implementation of the investment project to build the Hòa Bình – Mộc Châu expressway.

On the occasion of the 77th War Invalids and Martyrs’ Day (July 27th), the National Assembly delegation of Sơn La province presented 20 gifts to wounded soldiers, sick soldiers, and those with meritorious services to the revolution, as well as gifts to former leaders of Sơn La city.