Competition authority warns of online loan scams
The Vietnam Competition Authority, under the Ministry of Industry and Trade, has advised local consumers to be cautious in taking out online loans amid rampant online loan scams.
The authority has received multiple complaints about these scams. Online loans are easily available in Vietnam, while the legal framework for this kind of lending remains unclear, Tuoi Tre Online newspaper reported.
As a result, this model puts borrowers at stake as it may be a shelter for loan sharks.
When taking out loans online, consumers should choose service providers that have published their business information, including their names, business codes, addresses and telephone numbers, on their websites or apps. In addition, their websites or apps must feature information on transactions, including information security policies, sample contracts, fees and the roles of parties.
Lenders whose websites or apps do not include this information may be involved in fraud.
According to the Vietnam Competition Authority, legitimate lenders send loan agreements to borrowers for reference before entering into transactions.
After signing a loan agreement, if the lender does not send a copy of the agreement or instruct the borrower to download it, the borrower should immediately ask them to do so.
Consumers should know the interest rates and fees of these loans, which tend to be high, and store relevant information, to be used as evidence in case of disputes.
Borrowers should lodge complaints with lenders in writing, instead of over the telephone, to keep a record of the lender’s commitments made while handling the dispute.