Police in Da Nang’s Hai Chau District have just broken up three loan shark rings which require their debtors to pay interest rates of up to 365% per year.

After a period of reconnaissance, on the morning of April 6, police from the Criminal Police Team of the Hai Chau District Public Security Department arrested three men for operating three illegal loan shark rings.

They were 27-year-old Nguyen Van Quynh, hailing from Hai Phong City and temporarily residing in Khue My Ward, Ngu Hanh Son District; 25-year-old Le Ba Hai, coming from Thanh Hoa Province and temporarily residing in Hoa Hai Ward, Ngu Hanh Son District; and 26-year-old Nguyen Tuan Anh also from Thanh Hoa Province and temporarily residing in Hoa Minh Ward, Lien Chieu District.

The arrestees operated independently and lead three separate loan shark rings.

The debt collectors required borrowers to pay interest of 243% to 365% a year, and loan service fees are 3% - 5% of the loan amount.

They would curse, terrorize and threaten their debtors, as well as print the words "don't pay, don't live" in front of borrowers' houses or businesses when debtors failed to pay up on time.

Police investigation showed that the three groups had lent a combined total of about VND760 million to 61 people.

Whilst searching the residence of each subject, police in Hai Chau District seized hundreds of identification papers, household registration books of borrowers, about VND30 million in cash, and 4 motorbikes, including one motorbike owned by a borrower.

Currently, police have worked with 15 people involving the loan shark rings, and are continuing to expand their investigation.

To serve the investigation request, the district’s police announced that those who are the victims of the loan shark rings should actively contact the Criminal Police Team under the Hai Chau District Department of Public Security at 181 Phan Dang Luu Street to settle in accordance with the law.

Reporting by LE HUNG - Translating by M.DUNG