Gang members arrested for luring patients into taking out "loan shark" loans.

On January 5th, the Investigation Police Agency of Binh Thanh District, Ho Chi Minh City, initiated legal proceedings and arrested: Ha Quoc Huy (born in 1978, from Dong Thap province ), Mai Thi My Lynh (born in 1975, residing in Ben Nghe ward, District 1, Ho Chi Minh City), Dang Thi Hoa (born in 1971, from Khanh Hoa province), and To Ba Nguyen (born in 1995, from Nghe An province) for investigation into the crime of usury in civil transactions.

In addition, Ha Quoc Huy was also charged with the crime of extortion.

According to the investigation, Hoa had been operating a usurious lending business since 2018, primarily in the area around the Ho Chi Minh City Oncology Hospital. Borrowers would refer each other to Hoa for loans. Hoa personally verified the borrowers' backgrounds and collected both principal and interest payments. Due to the expansion of her lending activities, from 2021, Hoa hired To Ba Nguyen to collect interest payments, paying him 9 million VND per month.

Dang Thi Hoa (left) and To Ba Nguyen at the police station.

Hoa's "loan shark" operation provided loans in the form of "daily installments" and "standing loans". Borrowers would mortgage original documents such as their citizen identification cards, household registration books, etc., and sign loan agreements.

The minimum loan amount ranges from 500,000 VND to 60 million VND, with an interest rate of 30% per month. After receiving the loan, borrowers must pay a service fee (from 10% of the total loan amount) and make upfront payments for the first month's installment and interest, or the first day's payment. Therefore, the actual amount received is always less than the amount stated on the loan agreement.

According to Hoa's instructions, Nguyen went to the borrower's residence to collect the money. Alternatively, borrowers could repay by transferring the money to Hoa's account. If borrowers failed to pay on time, Hoa and Nguyen would call them to pressure them into paying.

Initially, the Criminal Investigation Agency of Binh Thanh District Police recorded statements from 22 people who borrowed money from Hoa, totaling 259 million VND. The amount of illicit profit Hoa earned was nearly 320 million VND.

According to the police, Hoa lent money at interest rates ranging from 360% to 720% per year, which is 18 to 36 times higher than the maximum interest rate stipulated in the 2015 Civil Code.

During the investigation, Dang Thi Hoa and To Ba Nguyen admitted to colluding in usurious lending activities and profiting illegally.

The police also arrested the group led by Ha Quoc Huy and Mai Thi My Lynh for lending money to others at interest rates ranging from 120% to 730% per year, having illegally profited more than 412 million VND.

Authorities searched the suspects' residences and seized numerous items and documents related to usurious lending activities, including: ledgers, loan records, citizen identification cards, loan agreements, documents mortgaging borrowers' assets, 3 cars, 3 motorcycles and dozens of other motorbikes, and 5 homemade machetes.

Currently, the Criminal Investigation Agency of Binh Thanh District Police is continuing to process the cases of these groups of suspects in accordance with the law.

Hoang Tho

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