Man Arrested in Ho Chi Minh City for Usurious Lending, Earning Over $16,000 Illegally

In Ho Chi Minh City, Vietnam's economic powerhouse, law enforcement has taken a significant step against predatory lending with the arrest of Hoang Duc Huy. Tuoi Tre reports on the apprehension of the 25-year-old for allegedly engaging in "usurious lending in civil transactions." This case highlights a persistent issue of illegal loan sharks exploiting vulnerable individuals, often trapping them in cycles of debt.

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The investigation determined that from around April to May 2025, Huy organized lending money through daily installments.

The investigation, initiated after a routine check by police on March 27th, uncovered Huy's alleged operation of a "daily installment" loan scheme. This method, common among illegal lenders, involves collecting payments frequently, often daily, making it difficult for borrowers to escape. The report details a particularly egregious case involving a woman identified as N.T.K.C., who initially borrowed 20 million VND. Due to exorbitant interest rates and a compounding interest system, she was forced into a series of 47 subsequent loans over a period of nearly a year to repay the original debt. This practice effectively inflated her debt exponentially.

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Specifically, when a borrower needs money, they contact Huy by phone, after which the two parties agree and exchange money in cash or via bank transfer.

Authorities estimate that Huy charged interest rates around 1% per day, which translates to an astonishing 365% annually. This rate is more than 18 times the legal maximum allowed in Vietnam. Through these illicit activities, Huy is believed to have amassed over 402 million VND (approximately $16,000 USD) in illegal profits. The police are continuing their investigation, aiming to uncover any other individuals involved in this network and ensure all parties are brought to justice. This action by the police underscores the government's commitment to protecting citizens from financial exploitation and maintaining stability within the financial system.

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Notably, Huy did not keep any collateral or assets but collected many additional "service fees," "coffee money," and "travel expenses" to legitimize the high interest rates.