The SBV reviewed the debt recovery regulations of FE Credit and two financial companies

2 min read

The SBV has just issued a letter asking banks and financial companies to clarify the FE Credit debt collection case to borrowers, which has caused public anger.

Regarding the debt collection case of Vietnam Prosperity Bank Limited Company (FE Credit) to borrowers, it caused a lot of public anger. In order to clarify the compliance with the provisions of the law and to provide sufficient information to related organizations and individuals, on June 29, 2020, the State Bank of Vietnam (SBV) issued Official Letter No. 4661 / SBV- TTGSNH and Official Letter No. 4660 / NHNN- TTGSNH request relevant organizations to clarify the matter.

Accordingly, the SBV required Vietnam Prosperity Joint Stock Commercial Bank (VPBank), FE Credit and HD SAISON Finance Company (HD SAISON); Shinhan Vietnam one-member financial limited company must urgently review all Fe Credit’s internal regulations on credit extension, urge debt recovery; agreements with partners on debt collection and debt sale to ensure full compliance with the provisions of Circular 43/2016 (amended and supplemented) and relevant provisions of law.

At the same time, to revamp all credit operations of FE Credit, including the approval and credit granting; monitor, urge and recover debts; agreement and implementation of Fe Credit’s agreement with debt collection partners, ensuring compliance with the provisions of the law.

In case of detecting breaches, strictly handling responsibilities of related organizations and individuals according to Fe Credit’s laws and internal regulations.

Besides, the SBV required HD SAISON; Shinhan Vietnam One-member Financial Co., Ltd reviews all internal regulations and the implementation of internal regulations of the company on credit extension, urging debt recovery; agreements with partners on debt collection and debt sale to ensure full compliance with the provisions of Circular 43/2016 (amended and supplemented) and relevant provisions of law.

In case of detecting breaches, strictly handling responsibilities of related individuals and organizations according to the laws and internal regulations of the Company.

The SBV requested VPBank and financial companies to report the implementation results to the State Bank of Vietnam (via Banking Inspection and Supervision Agency) and the State Bank of Ho Chi Minh City branch no later than July 15, 2020.

Also related to the incident, Standing Deputy Prime Minister Truong Hoa Binh requested verification of information clarification and required strict handling of violating organizations and individuals in accordance with law; Report the results to the Prime Minister before July 10, 2020.

Source: vietnambiz.vn