Vietnamese financial services firm F88 confirmed Friday that Ho Chi Minh City police are investigating five of its debt collectors, and that it would not conceal any individuals' wrongdoings, if any.
F88 said it received a notice from HCMC police investigators on March 23 saying they had started prosecutions against the five employees. As for the five others, so far F88 has not received an official notice of prosecution.
“For the act of expropriating assets of the prosecuted individuals, we have a process, strict regulations and penalties on debt collection ensuring legal compliance. Individuals who violate the company’s regulations and the law will take responsibility,” F88 stated.
The firm is coordinating with authorities to clarify the five prosecuted employees’ activities, and is reviewing its business network to ensure compliance with Vietnamese law, the consumer finance firm stated.
Established in 2013, F88 currently operates some 830 service points and offices across Vietnam. It has achieved an average annual growth rate of outstanding loans of nearly 200% in three consecutive years, the firm said. It is eyeing an IPO next year if its market capitalization can reach $1 billion.
15 firms under police investigation
Vietnamese police have recently started a campaign probing providers of consumer financial services and debt collection activities nationwide.
The latest check-up took place on March 28 in HCMC as police forces searched the headquarters of Galaxy Debt Trading Co., and Home Credit Vietnam.
At the 21st session of the National Assembly Standing Committee on March 15, the Ombudsman Committee said it had received thoughts and aspirations from voters nationwide who claimed that pawn services, debt collection activities by enterprises registered as law firms, debt trading companies, and similar businesses had recently terrorized the spirit of borrowers and their families, frightening the general public and harming social order.
In response, Senior Lieutenant General Tran Quoc To, Deputy Minister of Public Security, said the Ministry of Public Security learnt about the situation in October 2022 and has set up counter measures. Police forces are dealing with 15 organizations and businesses of this type, he added.
Police crackdowns on associated activities have eased the chaos, according to him.