Protecting the rights of Debtor in Debt Collection (Debt Collection Defense)

Are you receiving calls, messages, or even threats for debt collection? Don’t worry — this article provides a comprehensive guide on debt collection defense, showing you how to protect your rights, recognize unlawful practices, and avoid common mistakes.

1. The Legal Rights You ABSOLUTELY Must Know

Under The Constitution of the Socialist Republic of Vietnam 2013 (amended in 2025), Civil Code 2015, Civil Procedure Code 2015, and relevant laws on debt collection, debtors are entitled to the following fundamental rights:

The right to protection of life, health, honor, and dignity as provided in Clause 1, Article 20 of the Constitution of the Socialist Republic of Vietnam 2013. This is a crucial constitutional right that enables debtors to safeguard their interests during debt collection activities. Accordingly, creditors or collectors are strictly prohibited from engaging in unlawful acts such as:

• Torture, violence, or use of force to compel fulfillment of obligations.
• Coercion, corporal punishment, or unlawful detention.
• Threats, psychological harassment, or insulting a debtor’s honor and dignity (e.g., threatening phone calls or messages).
• Inflicting injuries or causing harm to health in any form.

In cases of violations, offenders will be subject to penalties and criminal liability in accordance with the Criminal Code.

• Right to be notified of the assignment of claims: As stipulated in Clause 2, Article 365 of the Civil Code 2015 (unless otherwise agreed), the debtor must be informed when a claim is assigned. If the assignor fails to notify and this results in additional expenses for the debtor, the assignor must reimburse such expenses.
• Right to initiate lawsuits, file complaints, or report crimes: If a debt collector engages in unlawful acts (e.g., threats, extortion, humiliation, or physical harm) that cause damages, the debtor has the right to file a lawsuit with the Court or report the matter to the police to safeguard their lawful rights and interests.

Being fully aware of their rights helps debtors proactively engage in debt collection defense during debt collection activities.

2. The Most Effective Defense Strategies

Strategy 1: Send a debt verification request letter

• You can send a written request asking the debt collector to prove their legal right to collect the debt. This ensures transparency in the collection process and creates a record of evidence in case of future disputes.
• Request the debt collector to present documents proving their right to collect the debt (such as power of attorney or an assignment of claim agreement). If they cannot provide valid legal grounds, you have the right to refuse to work with them.

Strategy 2: Negotiate a debt settlement

• In many cases, negotiating to adjust the repayment schedule or the payment amount can help reduce stress and pressure. The debtor may propose installment payments, request a reduction of interest or penalties, or extend the repayment period. Such negotiations must be in writing—either as a memorandum or a signed agreement between the parties—to ensure legal validity.
• However, it is crucial to pay attention to the legal status of the debt collector. Only organizations or individuals who are legally authorized by the creditor or assigned the debt collection rights under the law are entitled to represent the creditor in negotiations. If the collector cannot prove their legal authority, any settlement reached may be invalid and detrimental to the debtor.

Strategy 3: File a Complaint, Report, or Initiate Legal Action Against the Debt Collection Company

• Since January 1, 2021, when the Law on Investment 2020 took effect, debt collection services have been classified as a prohibited business line. If such entities engage in acts of threat, extortion, humiliation, or infringement upon the debtor’s lawful rights and interests, you are entitled to file a complaint or report with the police, and at the same time initiate a lawsuit before the court to claim damages.

Note: The prohibition on “debt collection services” is entirely different from hiring a lawyer or a law firm to assist with debt collection. Lawyers and law firms are legally permitted to represent clients in requesting the debtor to fulfil their financial obligations through lawful means such as negotiation, settlement, sending formal payment demands, or dispute resolution at court or arbitration.

3. Common Mistakes You MUST Avoid at All Costs

Mistake 1: Making payment to a party without legal authority

If a debtor makes payment to an organization or individual who cannot prove their lawful authority, that payment may not be legally recognized, and the debt obligation to the actual creditor will still remain. This creates the risk of losing money while still being considered as having failed to fulfill the repayment obligation.

Mistake 2: Ignoring all calls and requests

Many people believe that not responding will make the debt collector give up. However, if the dispute is brought to court, failing to respond or provide evidence will leave you completely passive. Instead of remaining silent, you should respond in writing or through a lawyer to protect your legitimate rights and interests.

Mistake 3: Fear and inaction

Fear often prevents debtors from standing up to protect their rights. In reality, the law allows you to report acts of threats, coercion, or insults to honor and dignity (Article 144 of the Criminal Procedure Code 2015). Delayed action not only causes you to lose the chance of protection but also enables unlawful conduct to continue. Therefore, keep a record of and preserve all evidence such as messages, calls, emails, and letters to establish a legal basis for filing lawsuits, complaints, or criminal reports.

Mistake 4: Resorting to extreme or illegal actions against debt collection

The Criminal Code 2015 specifically provides that acts of using violence, threats, insults to honor and dignity, or causing bodily harm to others may lead to criminal liability (for example: the crime of intentionally causing injury, Article 134; the crime of humiliating others, Article 155; etc.). Therefore, such reactions can turn the debtor into a criminal offender, undermining their ability to lawfully protect their rights through effective debt collection defense.

4. When Should You Seek Professional Lawyer?

In many cases, handling debt collection requests or negotiating on your own can be effective. However, in the following situations, you should seek a lawyer’s assistance to ensure effective debt collection defense:

• Need to negotiate: If you wish to renegotiate repayment obligations, request an extension, or seek a reduction, a lawyer can represent you in negotiations based on the law to better protect your legal rights and interests.
• Being sued in court: When you receive a court summons or notice of case acceptance concerning repayment obligations.
• Facing threats or intimidation: When unlawful acts occur such as threats to life or health, insults to honor or dignity, or other forms of unlawful pressure.
• Complex contract or debt disputes: When contracts, loan agreements, or commercial transactions involve unfavorable terms or difficult-to-prove evidence.

Having a lawyer by your side not only helps you to protect your rights through effective debt collection defense but also enhances the chances of a successful resolution and reduces potential risks.

5. Professional Legal Help for Debt Collection Defense

With extensive experience and in-depth expertise in the field of debt collection, TNTP continuously enhances consulting, reviews risks related to debt collection, and assists clients in negotiating with relevant parties, representing clients in dealing with competent authorities to safeguard their interests. The support services include:

• In-depth legal advice on rights and obligations in each case.
• Drafting and sending official letters or requests to stop unlawful debt collection activities.
• Representing clients in negotiations with creditors or their authorized representatives.
• Protecting clients’ rights in court, arbitration, or before competent authorities in case of disputes.
• Assisting clients in filing lawsuits, complaints, or reporting unlawful debt collection actions to competent authorities.
• Supporting clients during the enforcement stage to protecr their legal rights and interests.

Understanding your rights and applying lawful defense measures is the key to effective debt collection defense. Avoiding common mistakes, proactively negotiating, and seeking legal support when necessary, will help you safeguard your legal rights and ensure your safety. Professional legal assistance from reputable organizations like TNTP enables you to handle all situations effectively, transparently, and securely, while minimizing risks and potential losses.

The above article is provided by TNTP lawyers on the topic: “Debt Collection Defense in Vietnam.” We hope this article is helpful to our readers.

Sincerely,