Breaking up a transnational loan shark ring with interest rates up to 2,090%/year

This is a transnational, organized crime ring, tightly organized, led by foreigners, connected with domestic subjects. The subjects set up specialized departments located in 3 provinces and cities, including: Management, operation, appraisal, and loan support departments in Ho Chi Minh City; payment intermediary department for payment and collection activities in Hanoi .

The debt collection and reminder department in Lao Cai province is run by Nguyen Thi Hoai Thuong (born in 1993, residing in District 9, Ho Chi Minh City), Pham Thi Huyen (born in 1990, residing in Lao Cai City, Lao Cai Province), and Chong Ngoc Phung (born in 1999, residing in Ward 11, Binh Thanh District, Ho Chi Minh City).

Police arrested the suspects and evidence of the case.

Authorities said that the subjects established Funmobi Technology Company Limited, using nearly 300 mobile phone lending applications (Vndong, Hitien, Zdong, Hvay...); linked with nearly 200 pawnshops and fintech finance companies to provide loan packages worth from 2 to 7 million VND, with a loan term of 7 days and an interest rate of about 2,090.93%/year.

To borrow money, customers are guided by the customer care and support department to install the application on their mobile phone, provide full information: Full name, date of birth, ID card number, citizen ID, passport, bank account number, occupation, workplace, portrait photo, personal documents; grant permission for the application to access contacts, applications on the phone... and register for a loan.

After that, the customer's loan application will be checked and evaluated by the appraisal department. If it meets all the conditions, the loan will be approved. The payment intermediary department will disburse (transfer the loan amount) to the customer's bank account at 59.9% of the loan amount.

The lenders benefit from 40.1% of the so-called fees and interest for the 7-day loan package. Within 7 days, the customer must pay the loan to the account designated by the lenders.

When the loan is due, the staff will contact the customer to remind them to pay the debt. If the loan is overdue, the debt collection department will contact and use many methods, threats, mental terrorism, defamation of the borrower and relatives, friends... to recover the loan, the overdue penalty fee is 6%.

According to the police, up to now, there have been about 159,000 customers borrowing money through the applications Vndong, Hitien, Zdong, Hvay with a total loan amount of 1,802.1 billion VND, the amount disbursed is 659.6 billion VND, the actual amount customers have paid is 830.1 billion VND, the penalty fee is 9.87 billion VND, the amount of money appropriated is 322.6 billion VND.

On July 12, the police force summoned and worked with 41 subjects, confiscating 72 mobile phones, 43 computers, many documents, seals of 2 companies and papers and documents related to the criminal acts of this loan sharking ring. Through the struggle, the subjects admitted to violating the law.

Currently, the Department of Cyber Security and High-Tech Crime Prevention is continuing to coordinate with the Criminal Police Department, Lao Cai Provincial Police to investigate and expand the case to strictly handle it according to the provisions of law.

The Department of Cyber Security and High-Tech Crime Prevention recommends that people be vigilant against the above tricks; advises people not to borrow money through apps operating illegally on cyberspace...

Source: https://khoahocdoisong.vn/pha-duong-day-cho-vay-lai-nang-xuyen-quoc-gia-lai-suat-den-2-090-nam-post1155615.html