HO CHI MINH CITY (21/8/2025): Police in Ho Chi Minh City have successfully dismantled a major predatory lending operation that cleverly concealed its illegal activities behind the facade of a local smoothie shop. The ringleaders, identified as a woman known by the alias "Má Hạnh" (Mother Hạnh) and her son, were arrested for allegedly masterminding a loan shark network that charged victims exorbitant interest rates of up to 360% per year.
The arrests are the culmination of a thorough investigation by the Ho Chi Minh City Police Department into the city's pervasive "black credit" (tín dụng đen) problem. According to the investigation, "Má Hạnh" and her son established a smoothie shop as a seemingly legitimate business. However, this storefront served as the headquarters for their illegal high-interest lending activities, allowing them to meet with borrowers and conduct transactions without arousing suspicion.
This sophisticated operation preyed on financially vulnerable individuals, including small business owners, laborers, and families facing emergencies who were unable to secure loans through official banking channels. Victims were lured in with the promise of fast and easy cash, only to be trapped in a crippling cycle of debt.
The interest rate of 360% per annum is nearly 1% per day, a figure drastically higher than the legally mandated cap in Vietnam, which stands at around 20% per year for civil transactions. This predatory rate made it virtually impossible for borrowers to repay the principal loan, forcing them deeper into debt and often subjecting them to intimidation and threats if they failed to meet the demanding repayment schedules.
This successful bust is part of a broader, intensified crackdown by Vietnamese authorities on illegal lending and loan-sharking activities across the country. These criminal networks are considered a significant threat to social order and stability, often leading to personal bankruptcies, property loss, and other related crimes.
"Má Hạnh" and her son are currently in custody and are facing charges related to illegal lending in civil transactions. Authorities have stated that the investigation is ongoing to identify other potential accomplices and to determine the full scale of the criminal network and the total number of victims affected.
