State Bank requests Eximbank to urgently clarify the case of 8.8 billion VND card debt

The Governor requested Eximbank to urgently handle the credit card debt of 8.8 billion VND, protecting the legitimate interests of customers.

On March 19, the Governor of the State Bank requested the Chairman and General Director of the Export-Import Bank (Eximbank) to arrange for leaders to directly respond to the press and public opinion about the responsibilities, authority and direction for handling the case of credit card debt from 8.5 million to 8.8 billion VND of customer Pham Huy Anh.

"Eximbank urgently verifies the incident, protects the legitimate rights and interests of customers and the bank," according to a document from the State Bank.

After receiving instructions from the State Bank, Eximbank said on March 20 that it "met with customer Pham Huy Anh in Hanoi and had a frank discussion in the spirit of cooperation, understanding and sharing". The parties agreed to coordinate to resolve the case, ensuring reasonable and equitable benefits for both parties in the shortest time possible.

In addition, the bank also said that it has been urgently reviewing, evaluating and adjusting policies, procedures and contracts, including methods of calculating interest and fees in lending and granting credit via cards. At the same time, the bank said it is also reviewing its customer care process to provide timely support and ensure harmonious benefits for both the bank and customers.

As reported by VnExpress , Eximbank's way of calculating interest on top of interest and fees on credit cards from a principal balance of 8.5 million is, according to banking circles, "very unusual".

How to calculate interest on interest with Eximbank's credit card debt of 8.8 billion VND - 1

According to the way other banks in the market calculate interest on the principal balance, the card debt of 8.5 million VND from 2013, if calculated by 2023, will only be from a few tens of million VND to less than 100 million VND. However, Eximbank's method of calculating interest on interest makes this debt reach a "huge" and unusual number of 8.8 billion VND.

In addition, allowing a credit card debt to last for 11 years also makes the banking industry question Eximbank's process. In addition to sending documents, banks usually send text messages and have staff call to remind customers of the debt continuously.

Quynh Trang

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