Warning: Groups Teaching Tricks to Evade Consumer Loan Repayments

Anonymous group admins are instructing members on how to use loan services through various apps and then evade repayments by forging identity documents or selling fake social media accounts.

Taking advantage of the quick and simple lending procedures of legitimate financial institutions offering consumer loans, numerous online groups have emerged, teaching people how to borrow money and then intentionally default on their loans.

Two years ago, an office worker took out a consumer loan but was unable to repay it on time. She turned to social media for help and was drawn into a group that taught members how to evade loan repayments and avoid creditors.

These groups not only boast about their "success" in dodging repayments to lure more members but also guide them on using loan apps and escaping debt by creating fake national ID cards or selling virtual social media accounts. Though these accounts may be fake, the debt is real, leading to serious consequences for many individuals.

Encouraging and teaching loan evasion carries serious legal risks. Those who follow such instructions may face severe consequences, including being charged with "abuse of trust to appropriate property," which carries a prison sentence of up to 20 years.

In a recent report to the State Bank of Vietnam, the Vietnam Banks Association highlighted that consumer finance companies licensed by the central bank are facing significant challenges due to the increasing number of loan evaders. As a result, bad debt levels in many consumer finance companies have surged, leading to losses amounting to trillions of dong.