SBV To Probe Credit Institutions Operation

The State Bank of Vietnam (SBV) asked credit institutions to review their implementation of the SBV’s regulations on consumer loan management in a document issued this week.

According to the SBV, credit institutions must strictly comply with previous legal documents on civil loans and credit card issuance, especially those on credit interest rates surcharges, calculation methods and transparency.

This means these institutions must make public their lending activities, such as standardised contracts listing, providing clients with information on lending rates, as well as establishing concrete interest rates determinants, including adjusted rates, overdue rates and other extra charges, before finalising a loan agreement.

Regarding consumer finance companies, the SBV is working on promulgating more in-depth regulations on uniform loan interest rates across the entire market to prevent fraudulent lending.

The SBV also ordered credit institutions to tighten credit control, by timely detecting malpractice and strictly handling violations of consumer lending regulations to protect customers’ interests.

Previously, the SBV’s Banking Supervision Agency (BSA) announced an annual inspection of well-known lending institution VPBank Finance Company Limited’s FE Credit brand (FE Credit) in 2018, after more than 100 consumer complaints were filed against the company.

In response to a written notice from the Vietnam Competition and Consumer Rights Protection Agency, under the Ministry of Industry and Trade, regarding FE Credit’s recent negative feedback, the BSA said it will review the lending firms’ operation.

The complaints focused primarily on malpractice in FE Credit’s customer service, such as shady loan transactions and verbal harassment towards consumers from staff working in the debt recovery department in 2017 and the first quarter of 2018.

The BSA also said that FE Credit’s process for consulting and finalising consumer loans has many issues, such as automatically filling contracts without customers’ agreement or too fast approval times with no guarantee of legal value.

In addition, the company does not allow consumers to correct information on their contracts even when they have detected errors, creating anxiety and affecting the financial situation of a large number of consumers, said the BSA.

Nonetheless, the inspection on FE Credit is a periodic plan already announced by the SBV at the end of 2017, ensuring financial protection for credit institutions depositors and customers.

http://bizhub.vn/banking/sbv-to-probe-credit-institutions-operation_295003.html

 

Category: Finance, Vietnam

Print This Post

RECENT NEWS

Reference Exchange Rate Down 5 VND On August 27

Intellasia East Asia News The State Bank of Vietnam set the daily reference exchange rate at 23,208 VND per USD on Aug... Read more

VietCapital Bank Submits To Issue 38m Shares

Intellasia East Asia News Viet Capital Commercial Joint Stock Bank (Viet Capital Bank) (UPCoM: BVB) had just released ... Read more

Payment Via Mobile Banking Increases By Nearly 180pct In H1

Intellasia East Asia News Sharing at the workshop on “Promoting non-cash payments in businesses” held by Dien dan ... Read more

Banks Heat Up Digital Transformation Race

Intellasia East Asia News The 4.0 Industrial Revolution is making a comprehensive change to the way of providing produ... Read more

Outlining Deep Scrutiny Of HSBC Vietnam Bond Activity

Intellasia East Asia News Vietnam’s corporate bond market presents a good channel for capital mobilisation, even if ... Read more

VIB Prepares For The Unusual General Meeting Of Shareholders

Intellasia East Asia News The Board of directors of International Commercial Bank (VIB) has just announced a resolutio... Read more