The consumer finance market always exhibit amplitude asymmetric information in transactions that most customers do not necessarily know the legal elements of financial services and on the the hand, a few credit organiztions have deep understanding of the regulations and policies of the authorities. As given, most regulations and policies of finance companies providing consumer loan are often rigorous and protective of the benefit of their organizations when occuring conflict and not consider customer’s benefits.
Due to all of these adversities and in order to create a more level playing field and promote the sustainable development of consumer lending, increasing the ability to access financial services of borrowers, in March 30, 2016, the State bank of Vietnam issued circular 43/2016/TT-NHNN about regulating consumer lending of finance companies and especially emphasising on protecting customers.
Accordingly, the State Bank requires all finance companies to comply strictly with these regulations to ensure the benefits of customers, such as: Providing customers with necessary information before entering into any contract, showing interest rates, method of collecting debt, time frames not allowed to bothering customers with debt-relating issues. And one important issue which is requied by the State Bank is that all finance companies must calculate the interest rate on the basis of the actual credit exposure and time period for maintenance thereof and the interest rate must be converted to percent %/year ( one year is composed of 365 days), also putting a limit on principle of determination of interest-on-interest (Not exceeding 10%/year, calculated based on the amount of late payment interest and its overdue time.
Obviously, if the above requirements are carefully applied, many finance companies will lose its advantages so that they have to make more efforts. Therefore, the gap between regulations and actual implementation always exists. And Vietcredit is trying to bridge this gap. From our company’s view, it is true that in the short term, the implementation of all articles in this regulations will incur many costs like research costs, costs of training, implementing and compliance controlling. However, in the longterm, customers will understand, support and use VietCredit’s products and they no longer have a feeling of uncertainty when having a consumer loan.
From the beginning, VietCredit has focused on protecting customer by establishing modern technologicial systems and a complete customer-centric policy system. In more detail, VietCredit consistently guarantees provide customers with the following rights:
Right to have information transparency:
VietCredit always provides customers with specific regulations related to products, sevices that we provides. Information about the VietCredit loan card products are fully posted on our website www.vietcredit.vn and showed fully, accurately, simply and easily to understand for customers.
Thereby customers can have the information about how to register and use the loan card, credit card limit, payment channels, interest rate, credit card payment due date, monthly payment amount, … Also there is a special function that can help customers look up payment information.
Right of choice:
VietCredit always ensures that customers have the right to choose any kind of products and services according to their demand and actual conditions, customers can decide whether to use our products or not. VietCredit’s consultants always give out the most resonable options for customers and do not force or cause any trouble to make customers sign the contracts.
VietCredit’s automatic credit scoring system will rely on the information provided by customers to determine the level of risk and offer the most suitable interest rate for each customer. The range of interest rate is always within the rate that VietCredit accounces and agreed with customers at the beginning.
Right to give opinion and have problems resolved.
In order to make further improvement on products, services and build a method of resolving customer complaints which works quickly and effectively, Vietcredit has created a system of receiving complaints so that customers can make a complaint directly at the branches/offices and our hotline 1900-6515 of Customer Service Center or email us at phucvu247@vietcredit.com.vn to have the problems solved and we will receive all comments and feedback about quality of services and products of VietCredit.
VietCredit commits to quickly resolve customer complaints and receive all comments from customers to improve the products and customer services.
We understand that protecting customers is not only bases on the principle of compliance with legal regulations, policy orientation of relevant agencies and organizations representing consumers but Vietcredit must also proactively consider protecting customers to be a core part in our operations to ensure the quality and reliability of all products and services we provide as well as reinforcing credibility of customers.
In addition, the implementation of the following contents is a pratical support to join us in ensuring the best benefits of customers when using VietCredit loan card:
Read and understand clearly the information related to the product of VietCredit loan card, if any content is not clear, please ask the consultant of Vietcredit to be explained clearly about the product before signing the contract.
Rememer to contact via hotline 1900-6515 and email phucvu247@vietcredit.com.vn to promptly report any problems you need.
Always keep personal information and other information related to VietCredit loan card safe.
With the support of customers as well as our efforts and commitments, we believe to gain more benefits to the customers. We hope that with the utilities and guarantees that Vietcredit offers, more and more customers will trust and use VietCredit loan cards.
Le Thien Tam,
Head of Legal and Compliance
The author expresses his personal opinions in this article.
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