Be more knowledgeable when playing hui

After a while, when she had gained trust, Ms. Phuong took advantage of the fact that the members did not participate in the opening of the hui and used many deceitful tricks. "The day I heard that Ms. Phuong had run away, my hands and feet went numb," said one victim.

Defendant Nguyen Thi My Phuong in court.

Contracts are based on trust, and many people do not even know who they are playing with. Because it is so easy, many hui owners begin to have the intention of cheating, using players’ money indiscriminately and then declaring the hui “broken”; the hui members suffer double losses.

The provincial People's Court has just tried the defendant Tran Thi My Phuong, a resident of Long My town, who was previously quite prestigious because she was the head of a hui for many years. Her family was also well-off, so no one expected that one day Ms. Phuong would fail the hui.

In court, 162 members of Ms. Phuong's association, many of whom were long-time partners or relatives, now stood on one side demanding repayment of their debts; many of them were suffering in every way.

In fact, in recent times, many hui chains in rural areas have quite high asset values, and when the hui breaks down, the debt is up to billions of dong. In 2022, the hui collapse of hui leader Le Bich Tram, residing in Vi Thuy district, also shook a rural area. Or like the case of the chairman of a mass organization in Vinh Tuong commune, Vi Thuy district, who ruined decades of hard work just because of the hui...

In 2022 and the first months of 2023, the Provincial People's Court tried few fraud cases related to hui, however, each case had dozens, hundreds of victims, with the amount of fraud in the billions of dong.

As in the case of defendant Tran Thi My Phuong, the court had to summon 162 victims, 43 people with related rights and obligations, the amount of money that the members had appropriated was up to 5.6 billion VND.

The investigation of the case showed that, at first, Phuong was a very reputable hui owner, when the hui members "collected" the hui, she paid the money fairly and on time. However, later, when she had created trust, Ms. Phuong took advantage of the fact that the hui members did not participate in the full hui opening, so she used many deceitful tricks such as: Using fake names, fake shares in the hui chains; arbitrarily taking the hui members' hui to collect; selling fake hui to appropriate the members' money, etc. By November 2021, hui owner Phuong lost the ability to pay the hui members, quietly fled the locality.

Most of the time, after a hui collapses, the members rarely have a chance to get back the money that was taken, and if they do, the amount they get back is very small, not worth much compared to the amount of loss. Because when a hui collapses, the hui owner usually uses many different ways to disperse the assets, leaving little left to execute the judgment...

Ms. Nguyen Thi Thuong, residing in Long Tri commune, Long My town, a member of the association in the case of the association leader Nguyen Thi My Phuong, with a loss of nearly 50 million VND, said: “The day I heard that Ms. Phuong had run away, my hands and feet were numb. I worked hard, saving every penny to pay monthly into the association in the hope of having some savings. But suddenly the association collapsed. Now I don’t know when my money will come back...”.

In the same situation as Ms. Thuong, Ms. Nguyen Thi Be Hai, residing in Thuan Hoa commune, Long My district, had 41 million VND taken from Ms. Phuong. Ms. Be Hai confided: "In addition to participating in the hui, I also lent Phuong 30 million VND. When I learned that Ms. Phuong broke the hui, I was also shocked. Now hearing that Ms. Phuong's family has no assets left, I don't know how the court will handle it."

A judge of the provincial People's Court, speaking about disputes related to the rotating savings and credit association, said that the trial of cases related to the rotating savings and credit association is often quite complicated and difficult. Many people participating in the rotating savings and credit association do not have a firm grasp of legal regulations and do not pay attention to the form of transaction, which leads to disadvantages when disputes arise.

The Civil Code and the Government 's guiding decrees all have provisions related to rotating savings and credit associations, regulating this civil relationship. However, whether people apply the law correctly or not is another matter.

Up to now, in reality, when playing a hui, few members require the hui owner to bring the agreement document on the hui to be certified. Remember to keep in mind a golden rule, hui with too high interest rates as well as mobilizing capital with high interest rates, behind that is the risk, the risk of being scammed and having assets appropriated...

Opening a savings and credit association from 100 million VND, must notify the authorities

According to the provisions of Decree 19/2019 of the Government regulating rotating savings and credit associations, rotating savings and credit associations, rotating savings and credit associations, and wards, the rotating savings and credit association owner must be a person aged eighteen or older and not in a case of loss of civil act capacity, limited civil act capacity, or difficulty in cognition or behavior control as prescribed in the Civil Code.

In addition, the Decree also stipulates that if the value of the hui is low and the hui owner only opens one chain, he/she does not have to report to the authorities. However, if the value of the hui parts at one hui opening period is 100 million VND or more, or if he/she organizes two or more hui chains, the hui owner must notify in writing the People's Committee of the commune where he/she resides about the organization of the hui chain.

Article and photos: BB

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