In recent times, many people have become familiar with the term “Bốc bát họ” which is a form of usury. You may often hear phrases like “bốc bát họ,” “bốc họ,” or “thu họ” in your daily life. But do you have accurate information about what “bốc bát họ” really is? Having a clear understanding of “bốc bát họ” can help you avoid unnecessary risks in life.
What is “Bốc bát họ”?
“Bốc bát họ” is a form of high-interest lending that has gained popularity in recent times. You can easily come across people around you participating in this lending method. So, what exactly is “bốc bát họ”?
“Bốc bát họ” is a form of credit lending with high interest rates calculated on a daily basis. You need to borrow a minimum of 10 million Vietnamese dong. This lending method has not been recognized by the government or any legal authority. It can be considered an unofficial form of lending.
The lending process in “bốc bát họ” is based on social relationships such as family ties, acquaintances, or even recommendations from people who have previously participated in “bốc bát họ”. The lending terms and interest rates do not comply with any legal regulations.
When borrowing, the procedures are quick and simple, not consuming much time for both parties involved. Therefore, people in urgent need of money often choose this “bốc bát họ” method.
In summary, “bốc bát họ” can be defined as a form of high-interest lending with upfront interest payments. Daily interest payments are required based on the principal amount borrowed. Finally, you must repay the full principal amount within a specified period of time.
The rules of “bốc bát họ” game
The rules of “bốc bát họ” game are essentially the regulations on interest rates and repayment timelines set by the borrower. What are the rules when playing “bốc bát họ”? Borrowers need to be aware of the following rules before deciding to participate in “bốc bát họ”.
The rule of “bốc họ”
The “bốc họ” rule in “bốc bát họ” refers to the conditions set by the lender regarding the principal amount. The rule of “bốc họ” is to borrow 10 and bring back 8. The borrowed amount must be higher than 10 million dong. When you borrow 10 million dong, you will only receive 8 million dong. Usually, borrowers choose this loan amount because the repayment time is very short, around 50 days, making it difficult for you to manage your repayment.
Similarly, if you borrow 30 million dong, you will receive 24 million dong. The amount retained by the lender will be deducted from the first-month interest payment. Specifically, in this case, 6 million dong will be counted towards the interest payment you have to make. After a specified period, the borrower will have to repay the full loan amount of 30 million dong to the lender.
For those who need to borrow larger amounts, the lenders of “bốc bát họ” will impose stricter conditions. They will demand more collateral documents, such as information about your home address and workplace, to ensure the recovery of the borrowed amount. The interest rates will be calculated at a similar rate to the 10 million or 30 million loans, but the daily interest payment will certainly be much higher.
The rule of “thu họ”
When participating in “bốc bát họ,” you are required to pay interest to the lender on a daily basis. The amount of interest depends on the initial loan amount according to the following rate:
If you borrow 15 million dong, you will receive 12 million dong. In the next 50 days, you have to pay an interest rate of 300,000 dong per day.
If you borrow 20 million dong, you will receive 16 million dong. Again, for the next 50 days, you have to repay the full principal amount and pay an interest rate of 400,000 dong per day.
Overall, you will have to repay the entire principal debt within 20 days and pay a significantly higher daily interest rate compared to other legitimate lending methods.
The requirements for “bốc bát họ”
“Bốc bát họ” is an illegal form of credit lending. Unlike borrowing from a bank, where you need to declare your assets, income, or mortgage property, you do not have to go through these procedures when participating in “bốc bát họ.”
However, borrowers will have to provide the lender with some important documents to ensure that you cannot escape from your debt:
- You must provide personal identification documents such as your ID card or driver’s license.
- Submit your household registration book to the lender.
- Sign the necessary documents for “bốc họ.” Finally, you will receive the desired loan amount.
The lender will verify your documents within a short period of time. They will verify your residential address and may seek information about your workplace to ensure the possibility of debt collection on a daily basis. Therefore, the procedures for “bốc bát họ” are simple and quick. It takes only about 2-3 hours for you to receive the loan amount without any complicated paperwork.
Your documents will be held by the lender until you repay your debt in full. The lender believes that with these important and essential documents, it will be difficult for you to escape, and they will be able to easily collect their debt.
The risks of “bốc bát họ”
When deciding to participate in “bốc bát họ,” you should be aware of the risks that may occur to you and your family if you fail to repay the debt. As we know, “bốc bát họ” is a high-interest lending method that is not legitimate. With such high interest rates, it becomes challenging for the lender to repay on a daily basis.
Usually, those who seek “bốc bát họ” are facing economic difficulties or job-related issues. They are in urgent need of money and do not have time to wait for a loan from a legitimate institution. Therefore, their difficult situation becomes even more burdensome when they have to repay high daily interest rates. If they fail to pay the interest today, it will be added to the next day, creating a vicious cycle that makes it impossible for borrowers to repay.
In reality, many individuals are unable to repay their debts and are subjected to debt collection and asset seizure by the lenders. In the early days of non-payment, you may receive threats or severe insults from the lenders. However, if the interest debt accumulates for many days, some people even face brutal physical assaults.
When the debt becomes overdue or the interest cannot be collected, many families have had their assets destroyed and seized by the lending organizations. In some cases, they even confiscate land and property documents because they possess documents such as land ownership certificates or your ID card.
“Bốc bát họ” may provide you with a large sum of money quickly, but there are serious risks if you fail to repay the debt. Many “bốc bát họ” organizations resort to unlawful methods to collect their debts, causing significant harm to the borrowers. Therefore, you need to carefully consider before participating in this illegal lending method.
Is “bốc bát họ” illegal?
As we know, the Civil Code of Vietnam in 2015 stipulates that the maximum interest rate allowed in a civil transaction is 20% per year. However, “bốc bát họ” organizations have pushed interest rates to around 20% in just 50 days. According to the Criminal Code, any transaction carried out with an interest rate exceeding 5 times the stipulated rate is considered a crime of usury.
Thus, the interest rate in “bốc bát họ” exceeds the permitted rate significantly. With such interest rates, a borrower will have to repay 140% per year. This violates the Civil Code regarding usury loans.
Lenders may face administrative penalties such as fines, with the highest fine being 3 years of imprisonment. Specifically:
For illegal gains ranging from 30 million to 100 million dong: A fine of 50 million to 200 million dong. Alternatively, the offender may receive a non-custodial sentence.
For unjustified gains of over 100 million dong: A fine ranging from 200 million to 1 billion dong. Alternatively, the offender may receive a prison sentence of 6 months to 3 years.
If the offender holds a position in the state administration or works in any organization, they will be suspended. The law will prohibit them from practicing their profession or suspend their work for a period of 1 to 5 years.
So, what is “bốc bát họ”? In essence, it is a lending method with exorbitant interest rates that leads to illegal gains. Unjustified gains are condemned acts and will be subject to legal sanctions. According to the latest amendments and supplements to the Civil Code in 2017, lending methods like “bốc bát họ” violate the law. Both lenders and borrowers will face legal consequences.
In conclusion, this article has provided you with the information about what “bốc bát họ” is, the potential dangers when participating in it, and the legal consequences it entails. We hope that you now have enough knowledge and awareness to avoid the troubles and risks that “bốc bát họ” may bring.
Thank you for your interest in our article!