Late repayment of unsecured loans and possible legal consequences.

This is one of the cases that Lawyer Bui Thi Nhung (Minh Khue Law Firm) is currently advising on, related to unsecured debt issues.

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

Will failing to repay an unsecured loan result in criminal liability?

Regarding whether Mr. D should be held criminally responsible, according to lawyer Nhung, there are two possible scenarios:

Case 1: If the borrower has not paid interest and principal since September 2023, and remains in contact with the finance company, and makes timely payments as stipulated in the contract, and does not abscond from their place of residence, then the bank may have to comply with the contract and allow the borrower to continue fulfilling the contract (i.e., allow the borrower to continue making payments) or terminate the contract and require the borrower to pay the outstanding amount.

According to the law, a financial company can independently demand repayment from the borrower or take legal action if the customer does not voluntarily pay. Threatening customers to pay is illegal.

Case 2: If the borrower has not made payments from September 2023 to the present, has not maintained contact with the financial company, has left their place of residence, and local authorities cannot summon them, then the aforementioned actions, along with the borrower's possession of the money from the financial company, may lead to criminal prosecution for the crime of abuse of trust and misappropriation of property.

The penalty for the crime of abuse of trust and misappropriation of property.

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

"1. Any person who commits one of the following acts of appropriating another person's property worth from 4,000,000 VND to less than 50,000,000 VND, or less than 4,000,000 VND but has been previously penalized for administrative violations related to appropriation, or has been convicted of this crime or one of the crimes stipulated in Articles 168, 169, 170, 171, 172, 173, 174 and 290 of the Penal Code, and whose criminal record has not been expunged and who commits the offense again, or whose property is the victim's main means of livelihood or has special spiritual value to the victim, shall be punished with non-custodial correctional measures for up to 3 years or imprisonment from 6 months to 3 years.

a) Borrowing, renting, or receiving property from another person through contractual agreements, then using fraudulent means to misappropriate that property, or intentionally failing to return the property by the due date despite having the means and ability to do so; b) Borrowing, renting, or receiving property from another person through contractual agreements and using that property for illegal purposes, resulting in the inability to return the property.

2. Committing an offense falling under one of the following circumstances shall be punishable by imprisonment from 2 to 7 years:

a) It is organized.

b) It has a professional nature.

c) Appropriating property valued from 50,000,000 VND to less than 200,000,000 VND.

d) Abusing one's position, authority, or the name of an agency or organization.

d) Using deceitful tactics.

e) Dangerous recidivism.

3. Committing an offense falling under one of the following circumstances shall be punishable by imprisonment from 5 to 12 years:

a) Appropriating property valued from 200,000,000 VND to less than 500,000,000 VND.

b) Causing adverse effects on security, order, and social safety.

4. Committing the crime of misappropriating property worth 500,000,000 VND or more shall be punishable by imprisonment from 12 to 20 years.

5. Offenders may also be fined from VND 10,000,000 to VND 100,000,000, prohibited from holding office, prohibited from practicing a profession or performing certain work for 1 to 5 years, or have part or all of their assets confiscated.

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