Loan sharks busted for charging over 1,500% annual interest

Four individuals from Hanoi rented several houses in Son Tra and Hai Chau districts of Da Nang to run a loan shark operation, charging an annual interest rate of 1,580%, nearly 80 times the legal limit.

On 17/9, Da Nang City's Criminal Investigation Department announced the prosecution of Chu Dinh Huy and Chu Huu Dong, both 30, Hoang Khanh Duy, 23, and Chu Tam Duong, 22, for illegal lending practices.

From left to right: Chu Dinh Huy, Chu Tam Duong, Hoang Khanh Duy, and Chu Huu Dong. Photo: Police Department

From left to right: Chu Dinh Huy, Chu Tam Duong, Hoang Khanh Duy, and Chu Huu Dong. Photo: Police Department

The four suspects arrived in Da Nang from Hanoi in April and rented multiple properties to conduct their loan sharking activities. They created a Facebook page titled "Quick Loan Support Da Nang", distributed flyers, and used numerous Zalo accounts to attract borrowers. They offered various seemingly attractive loan packages and conducted home visits to consult with potential clients.

However, borrowers were required to submit their citizen identity cards and driver's licenses. Huy and his accomplices also deducted 5-10% in service fees and upfront interest for the first two days, significantly reducing the actual loan amount received compared to the contract. Borrowers were required to make daily repayments via bank transfers.

Investigators allege that this scheme resulted in effective annual interest rates ranging from 292% to 1,582%, 11 to 79 times the legal limit. The group allegedly profited over one billion dong (VND). Their operation was organized into three separate branches to conceal their activities and hinder investigations.