The Da Nang People's Committee has just issued a dispatch requesting functional local agencies to join with the local police force in the fight against the so-called ‘black credit" Da Nang-wide from July 30 to October 15, 2021.

Under the dispatch, focus must be on implementing synchronously, drastically and effectively professional measures to proactively detect and handle violations related to "black credit" activities, especially peer-to-peer lending, the practice of lending money to individuals or businesses through online services that match lenders with borrowers, online and unsecured loans.

Heed must be on scaling down the formation of lines, organizations and individuals engaged in offering loans at high interest rates across the city, in tandem with improving accessibility to official credit channels in an effort to keep people away from illegal sources. 

The Da Nang branch of the State Bank of Viet Nam is responsible for directing the banking system and credit institutions citywide to promote the application of science and technology and develop online lending and payment services associated with simplifying lending processes and procedures, thereby creating favourable conditions for organizations, businesses and residents to easily access legal loan sources when needed.

Another attention must be paid to strictly managing the account opening and transactions conducted by customers via banks. Any cases showing signs of going against the law such as a sudden increase or abnormality in transactions in terms of frequency, scope, amount of money must be reported to the local police force in a timely manner.

Analysts said that once people have to access black credit, they won’t be able to escape it. Because of exorbitant interest rates, borrowers will be deep in debt and pushed against the wall.

Reporting by MAI QUE – Translating by A.T