Police in Ho Chi Minh City raided the headquarters of pawnshop chain F88 on Nguyen Oanh Street in Go Vap District and its branches across the city on Monday. 

The area surrounding the headquarters was put under strict surveillance. Residents were prevented from taking photos and recording videos.

Besides the headquarters in Go Vap District, F88’s branches on Tran Quang Khai Street in District 1, Do Xuan Hop and Kha Van Can Streets in Thu Duc City, under Ho Chi Minh City, Nguyen Van Qua Street in District 12, and Le Trong Tan Street in Tan Phu District faced the same fate.

Swarms of policemen searched the headquarters and offices, which was supposedly the result of the company’s alleged extortion of debtors.

F88 was suspected of appropriating assets through lending.

The search of the company’s headquarters and offices is aimed at serving an investigation into the firm. 

F88, established in 2013, offers loans with customers’ autos, motorcycles, mobile phones, and laptops used as collateral.

F88 has reported fast growth in Vietnam. It currently has 830 offices nationwide.

The company successfully mobilized a series C investment totaling US$50 million last Thursday from the Vietnam-Oman Investment Fund and the Mekong Enterprise Fund IV.

The fresh capital was to be invested in technology, data science, brand building, new customer attraction, and human resource development, it said.

F88 chairman and general director Phung Anh Tuan said the company provides personal financial services to unbanked and underbanked customers and micro, small, and medium enterprises failing to meet banks’ requirements.

In 2017-18, F88 successfully mobilized a series A investment from the Mekong Enterprise Fund III and a series B investment from Granite Oak, a UK-based investment holding company.

Last year, it raised $70 million from Hong Kong’s CLSA Capital Partners Limited and the UK’s Lendable.

The Ministry of Public Security and police in many localities have recently busted many debt collection rings that appropriated assets of debtors.

Hundreds of thousands of people have been threatened and terrorized for their late debt payments.

The Ho Chi Minh City police department has also initiated legal proceedings against 26 suspects who are employees of Mirae Asset Finance Company (Vietnam) Limited and Power Law Company Limited on charges of calumny.

In addition, 13 others who are employees of P&L International Trading Services Co. Ltd. and TVX Group Co. Ltd. were prosecuted for allegedly using the Internet, telecom networks, and electronic devices to appropriate assets.

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