VPBank's Debt Recovery Process: Addressing Rumors of Illegal Collection Practices

 Recently, there have been many baseless rumors circulating about VPBank’s debt recovery process, causing public confusion. So, is the bank actually using improper methods to recover debts?

VPBank is a leading and reputable private bank, offering numerous preferential credit services to its valued customers. However, in recent times, misleading rumors have circulated regarding VPBank's debt recovery process, causing concern among clients and stakeholders. In today's article, we aim to provide clear information about VPBank's debt recovery procedures and definitively answer the question: "Does VPBank engage external entities for debt collection?"

1. Introduction to VPBank

VPBank, officially known as Vietnam Prosperity Joint-Stock Commercial Bank, was established in 1993, making it one of Vietnam's oldest commercial joint-stock banks. After nearly 30 years of operation, VPBank has expanded its network to 227 transaction points nationwide, supported by a team of nearly 27,000 employees.

With a long history and impressive revenue figures, reaching VND 44,301 billion in 2021, VPBank has consistently maintained its leading position among private commercial joint-stock banks for six consecutive years.

Despite recent rumors about VPBank's debt collection practices and some inaccurate information regarding lawsuits against VPBank, the bank consistently adheres strictly to legal regulations in its debt recovery activities.

Vietnam Prosperity Joint‑Stock Commercial Bank – VPBank

1.1. Credit Services at VPBank

VPBank offers a diverse range of credit services to customers, including mortgage loans, unsecured loans, bank account opening, and credit card issuance. Additionally, we provide savings packages with competitive interest rates and various incentives for both individual and corporate clients.

1.1.1. Loan Products

VPBank offers two main types of loan products: Mortgage Loans and Unsecured Loans.

• Mortgage Loans: You can borrow funds for business or other personal purposes by collateralizing assets such as market stalls, houses, cars, or savings passbooks.

• Unsecured Loans: You can also borrow funds for business or personal consumption without requiring collateral. However, you must provide proof of income, tax receipts, or documentation of ownership for assets like market stalls/kiosks (for the "Sạp Chợ Tiếp Sức" loan product).

1.1.2. Credit Card Products

Credit card products allow customers to utilize funds up to a pre-approved limit without needing immediate cash in their accounts, with repayment due later. Credit cards include both domestic and international payment cards.

VPBank offers a wide array of credit card services for customers, from basic to premium tiers, including the StepUp Card, VPLady Card, Titanium Cashback Card, and Platinum Cashback Card, each with various benefits.

A wide range of credit card products with various attractive benefits.

1.1.3. Savings Products

VPBank provides diverse savings packages, including regular savings, pre-paid interest savings, periodic interest savings, Bao Toan Thinh Vuong (Prosperity Preservation) savings, Phat Loc Thinh Vuong (Prosperity Development) savings, etc., with interest rates (as of August 2022) ranging from 3.2% to 7.0%, across various deposit amounts and tenors.

See also: Top 10 most reputable banks offering the highest savings interest rates.

2. VPBank's Debt Recovery Process

VPBank's debt recovery process strictly complies with legal regulations. Rumors suggesting VPBank is under investigation for hiring illegal debt collectors are unfounded. Therefore, clarifying the bank's official debt recovery process is essential. For customers who fail to make timely payments, VPBank undertakes professional debt recovery measures, which include the following steps:

• Debt Identification: Pinpointing the specific outstanding debt.
• Customer Classification: Categorizing customers based on their debt status.
• Debt Collection Officer Assignment: Assigning dedicated personnel for collection.
• Pre-Maturity Reminders: Notifying customers before their payment due date.
• Negotiation with Customers: Engaging in discussions with customers to find repayment solutions.

VPBank is committed to recovering debts in accordance with the law

VPBank’s debt recovery process complies with legal regulations. Although there have been some reports of lawsuits against VPBank related to debt collection procedures, in reality, the bank always ensures transparency in all its operations.

See also: What is credit? A complete guide to the most common types of credit from A to Z.

3. Reasons for Debt Evasion

The prolonged COVID-19 pandemic has caused significant financial difficulties for many individuals and businesses, leading to an inability to repay debts and, in some cases, intentional debt evasion.

Other contributing factors include business losses, unfavorable employment situations, or individuals/organizations incurring large debts without a concrete repayment plan, resulting in insufficient financial capacity to settle the debt when due.

Another reason, often seen with smaller unsecured loans, is when customers intentionally evade bank debt from the outset, with no intention of repaying even if they have the financial means.

These reasons have contributed to misleading rumors about VPBank being investigated for its debt recovery methods. However, the bank always operates in strict accordance with legal regulations. In some instances, when customers feel they have been unfairly treated, they may make accusations leading to situations where VPBank faces a lawsuit; however, most such cases are resolved amicably.

See also: Credit loan interest rates: Reputable banks you should consider.

4. Should You Evade Debt from VPBank?

VPBank is a leading commercial joint-stock bank. All interest rates comply with legal regulations, and contract terms are clear. It is not easy to evade debt from VPBank.

If legal action is taken, the penalties for debt evasion are severe. You could be marked with a bad debt record, be required to compensate for all damages, and, in the worst case, face imprisonment for up to 20 years depending on the debt amount.

According to Article 174 of the 2015 Criminal Code on the crime of misappropriation of property:

• Non-custodial re-education for up to 3 years or imprisonment from 6 months to 3 years if misappropriating property valued from 2 million VND to less than 50 million VND.

• Imprisonment from 2 to 7 years if misappropriating property valued from 50 million VND to less than 200 million VND.

• Imprisonment from 7 to 15 years if misappropriating property valued from 200 million VND to less than 500 million VND.

• Imprisonment from 12 to 20 years if misappropriating property valued from 500 million VND or more.

Therefore, it is best to have a clear repayment plan before proceeding with any loan application. If you encounter unforeseen difficulties and are unable to repay, we are fully prepared to negotiate with you to restructure the repayment period to a suitable arrangement.

VPBank is always empathetic and has provided opportunities for customers facing difficulties to extend their repayment terms to find ways to settle their debts. Information suggesting VPBank is under investigation for its debt collection methods are unfounded rumors aimed at tarnishing the bank's reputation.

Regardless of the reason, customers should never intentionally evade debt or engage in uncooperative behavior, as this will lead to significant penalties, a negative credit record, and potentially legal prosecution in accordance with the law.

See also: What is bad debt? 3 quickest ways to check your bank bad debt status.

5. Does VPBank Hire External Entities for Debt Collection?

Recently, there have been rumors alleging that VPBank hires external entities for debt collection or employs "gangster-style" debt recovery tactics. Some information even falsely claims that VPBank is under investigation by authorities for these accusations. We officially state that all these rumors are baseless, untrue, and have generated significant misinformation in public discourse, impacting the bank's reputation.

We, VPBank, always ensure absolute compliance with legal regulations in implementing professional measures for overdue debt collection. Through this article, we hope to provide a clearer understanding of VPBank's debt recovery process and the consequences of debt evasion. Information about VPBank being sued often consists of misleading rumors that do not represent the bank's actual operations.

You may be interested in:

• VPBank’s debt collection process: Is there any truth to hiring gangsters for debt collection?
• Red book/pink book mortgage loans 2023: Are the conditions and procedures difficult?
• Top 5 banks offering unsecured loans with the easiest requirements and lowest interest rates.