On 16/4, the Cybersecurity and High-Tech Crime Prevention Department of Hue City Police announced the indictment of a case and charges against Nguyen Ngoc Tuan from Ninh Binh and Pham Huynh Thanh Truc from Kien Giang. The charges are connected to online loan sharking activities, which involved interest rates exceeding 530% per year.

Tuan and Truc during their arrest. Photo: Hong Nhung

Tuan and Truc used various Facebook accounts to regularly post advertisements for daily installment loans in groups targeting Hue City residents. They used Zalo to contact potential borrowers, then arranged direct meetings at coffee shops to agree on loan amounts, interest rates, and repayment methods.

For first-time borrowers, Tuan and Truc charged a 15% processing fee on the total loan amount, which was deducted directly from the disbursed funds. For subsequent loans, the fee was 10%. Borrowers were required to transfer daily installment payments to a designated bank account.

In cases of late payment, Tuan and Truc repeatedly sent threatening messages and made calls, pressuring borrowers to pay. In one instance, the interest rate reached 530,91% per year, exceeding the maximum legal interest rate stipulated by the Civil Code by more than 26 times.

Vo Thanh