Debt collection in Vietnam is a service used by many businesses and is one of the essential services for society. However, the activity of debt collection that does not comply with the law poses many risks for both the user and the debt collector. In this article, we will analyze the consequences of illegal debt collection in Vietnam.

1. What is illegal debt collection?

Illegal debt collection activities include all debt collection behaviors that infringe upon the rights and interests of individuals, and legal entities in accordance with the provisions of the law. Examples of such behaviors include:

  • Publicizing images, personal information, and addresses of the debtor on the media without the debtor’s consent causes anxiety and threatens the debtor’s spirit.

When the debtor fails to repay the debt on time, the creditor usually immediately publicizes the debtor’s personal information such as their address of residence, workplace, name, age, date of birth, and identity card number. Even the images and information of the debtor’s family and relatives are also publicly disclosed on social media or in public places. This action can be considered one of the most common actions of creditors when the debtor fails to repay the debt on time.

  • Insulting, defaming the reputation and dignity of the debtor.

This behavior is very common when the creditor insults and defames the reputation and dignity of the debtor when the debtor fails to pay on time. In reality, many criminal cases originate from creditors cursing and using vulgar language toward the debtor. As a result, the creditor may be reported for violating the law.

  • Calling, and contacting acquaintances of the debtor to request repayment on behalf of the debtor.

Calling, and contacting acquaintances, friends, and family members of the debtor to request repayment on behalf of the debtor is a very common illegal debt-collection behavior of financial companies. However, this is also illegal debt collection behavior.

  • Threatening to use force or using force, damaging the debtor’s property.

The act of using force to threaten the debtor is very common and often appears in the media due to the serious nature of these activities. These actions not only violate the life and health of the debtor but also pose a risk of causing a loss of social order and safety.

2. Consequences of illegal debt collection

  • Firstly, the activity of illegal debt collection has led society to view and evaluate all debt collection activities as illegal services.

In fact, debt collection is necessary for the functioning of society, and there are many legal debt collection activities that society allows to operate. However, it is the proliferation of illegal debt collection activities that has led to society’s misunderstanding of this service. Therefore, the very debt collection activities that cause controversy in public opinion limit the demand for the use of debt collection services by society, as individuals and organizations who want to legally collect debts are often mistakenly influenced that debt collection is illegal and associated with “organized crime.”

  • Secondly, parties engaging in illegal debt collection will face legal measures, even criminal prosecution.

The common measures of illegal debt collection parties such as using offensive or threatening phone calls, using violence or property destruction against debtors, are all violations of the law and have clear sanctions under the Criminal Code. These actions infringe on the legal rights and legitimate interests of individuals and legal entities protected by law and also cause a loss of social order and safety. Therefore, those who engage in illegal debt collection are likely to be investigated and prosecuted by law enforcement agencies and subjected to sanctions such as fines or imprisonment.

Illegal debt collection behavior poses risks for both debt collectors and users of this service. The law has specified sanctions for violations to deter those who disregard the law. Therefore, individuals and organizations wishing to use debt collection services in a legal and professional manner should contact law firms with expertise in this field to ensure their rights and interests. We will help customers save time and costs and ensure that debt collection is conducted efficiently and legally.

Best Regard