Late payment of unsecured loans and cases that can be handled

This is one of the cases that Lawyer Bui Thi Nhung (Minh Khue Law Firm LLC) is consulting on regarding unsecured debt issues.

Lawyer Nhung said: Article 463 of the 2015 Civil Code stipulates that a property loan contract is an agreement between the parties, according to which the lender delivers property to the borrower; when the repayment term comes, the borrower must return to the lender property of the same type in the correct quantity and quality and only has to pay interest if there is an agreement or if the law so stipulates.

Is there criminal liability for not being able to repay a consumer loan?

Regarding whether Mr. D has to bear criminal responsibility or not, according to lawyer Nhung, there are two possible cases:

Case 1, the borrower has not paid interest and principal from September 2023 until now, the borrower is still in contact with the finance company, in the next payment period, the borrower makes payments on time as stated in the contract, the borrower does not flee the place of residence, the bank may have to comply with the contract and allow the borrower to continue to perform the contract (meaning allowing the borrower to continue to pay) or terminate the contract, requiring the borrower to pay the outstanding amount.

By law, the finance company can itself demand payment from the borrower or sue the customer in court if the customer does not voluntarily pay. Threatening the customer to pay is illegal.

In case 2, the borrower has not made payments from September 2023 to present, the customer does not keep in contact with the finance company, leaves the place of residence and the local authorities cannot summon him, the above behavior and the borrower obtaining the money from the finance company may be prosecuted for criminal liability for the crime of abuse of trust to appropriate property.

Punishment for the crime of breach of trust and misappropriation of property

The crime of abuse of trust to appropriate property is regulated and guided in Article 175 of the Penal Code No. 100/2015/QH13 dated November 27, 2015, specifically as follows:

"1. A person who commits one of the following acts of appropriating another person's property worth from VND 4,000,000 to under VND 50,000,000 or under VND 4,000,000 but has been administratively sanctioned for appropriation or has been convicted of this crime or of one of the crimes specified in Articles 168, 169, 170, 171, 172, 173, 174 and 290 of the Penal Code, has not had his/her criminal record expunged but continues to commit the violation, or the property is the main means of livelihood of the victim or the property has special spiritual value to the victim, shall be subject to non-custodial reform for up to 03 years or imprisonment from 06 months to 03 years.

a) Borrowing, lending, renting other people's property or receiving other people's property by contract and then using fraudulent tricks to appropriate that property or intentionally not returning the property when the time comes to return it despite having the conditions and ability; b) Borrowing, lending, renting other people's property or receiving other people's property by contract and using that property for illegal purposes, resulting in the inability to return the property.

2. Committing a crime in one of the following cases shall be punishable by imprisonment from 02 years to 07 years:

a) Organized.

b) Professional in nature.

c) Appropriation of property worth from VND 50,000,000 to under VND 200,000,000.

d) Taking advantage of position, power or taking advantage of the name of an agency or organization.

d) Using cunning tricks.

e) Dangerous recidivism.

3. Committing a crime in one of the following cases shall be punishable by imprisonment from 05 years to 12 years:

a) Appropriation of property worth from VND 200,000,000 to under VND 500,000,000.

b) Adversely affecting social security, order and safety.

4. Crime of appropriation of property worth 500,000,000 VND or more shall be punished with imprisonment from 12 years to 20 years.

5. The offender may also be fined from VND 10,000,000 to VND 100,000,000, banned from holding positions, practicing a profession or doing certain jobs from 01 to 05 years or have part or all of his/her property confiscated.

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