Banking regulations on automatic debt collection from accounts

Under current regulations, banks have the authority to proactively deduct funds from a customer's payment account to recover due or overdue debts, interest, and incurred costs. However, this action must be based on legal grounds or a prior written agreement between the bank and the account holder.

According to Circular No. 17/2024/TT-NHNN issued by the State Bank of Vietnam, banks may perform these deductions if previously agreed upon in writing. In practice, customers often consent to these terms when signing loan contracts or registering for payment services, allowing banks to collect payments without requiring separate confirmation for each transaction.

Banks must adhere strictly to the agreed scope and legal conditions. Having a loan does not grant a bank the automatic right to withdraw money from all of a customer's accounts without a specific agreement. Customers who notice unexplained deductions should review their transaction history and credit contracts, and they have the right to contact the bank for clarification.