Vietnam banking debt and credit regulations

Recent regulatory updates from the State Bank of Vietnam clarify the legal frameworks surrounding debt collection and credit card responsibilities.

Under Circular No. 17/2024/TT-NHNN, banks are permitted to proactively deduct funds from a customer’s payment account to recover overdue debts, interest, or costs, provided there is a legal basis or a prior written agreement. While customers often consent to these terms during loan or service registration, banks must strictly adhere to the agreed scope and cannot automatically withdraw funds from all accounts without specific authorization.

Additionally, Circular No. 18/2024/TT-NHNN establishes that primary credit cardholders maintain full legal responsibility for all debts incurred by supplementary cardholders. Although primary holders may attempt to seek reimbursement through private means, they remain liable to the bank for all obligations. Failure to settle these debts can lead to interest charges, fees, and potential damage to the primary cardholder’s credit history.