National Assembly discusses whether to ban debt collection services

Vu Hong Thanh, chairman of the Economic Committee of the National Assembly, presented two options for the National Assembly to consider.

Under the first option, debt collection services would be banned because even though there are regulations on debt collection services in place, many businesses and individuals have taken advantage of the service to develop criminal groups that commit crimes such as extortion, black credit and usury.

Under the second option, debt collection services would not be banned but classified as a conditional business activity because the service meets citizens’ needs and debt collection service providers have effective tools for complying with the law in collecting debts for customers. For better management of debt collection services, Thanh suggested imposing stricter regulations on the service.

Pham Van Hoa, vice head of the National Assembly delegation of Dong Thap Province, opposed the first option, explaining that “the Government should not ban services that it has not managed effectively.”

Vice Chairman of Quang Tri Province Ha Sy Dong stated that banning debt collection services should be a last resort, adding that the service is not banned in other countries.

Mai Hong Hai, a delegate from Hai Phong City, pointed out that debt collection services have not been managed effectively. “It should not be banned, but the Government should tighten control over the service,” she said.

Meanwhile, Tran Van Tien, a delegate from Vinh Phuc Province, supported the first option, explaining that debt collection services have caused many issues within the community. Tien suggested that the Government support debt collection service providers if the service is banned.

Nguyen Mai Bo, a delegate from An Giang Province, noted that debt collection services have negatively affected social security and order, so they should be prohibited.

Minister of Planning and Investment Nguyen Chi Dung explained that the Government has sufficient grounds for banning debt collection services. Therefore, he proposed National Assembly delegates support the first option, which bans these services.

The National Assembly delegates also proposed banning some other services and business activities such as private detectives, the trade of explosive materials and the trade of fetuses.