Basic Factors Affecting the Quality of Judgments Resolving Credit Contract Disputes in Court

Fourth: In the process of resolving credit contract disputes, many judges studied documents and evidence that were not complete and clear, evaluated evidence that did not match objective facts, even incorrectly determined the procedural status of the parties or did not summon all the people required to attend the trial, leading to many trials seriously violating procedural rules and as a result, the judgment was annulled due to violation of procedural obligations.

Fifth: The current court staff is still lacking in quantity and weak in capacity. Some court staff have low ethics and professional responsibility, so they have committed violations that affect the outcome of the case.

Sixth: The application of information technology and upgrading of facilities in the operation of the Court still has many limitations. The process of resolving disputes still takes a lot of time, many types of costs, many intermediaries while the financial sector is a sensitive field that requires quick resolution so that the parties can quickly resume normal operations.

2.3.2. Basic factors affecting the quality of judgments resolving credit contract disputes at Court

- Inadequacies of legal regulations on resolving credit contract disputes.

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The resolution of disputes over credit contracts is currently regulated in many different legal documents, so it is difficult to avoid overlap and inconsistency between documents. This makes it difficult for the Court to resolve disputes when they arise, affecting the rights of the parties in the case and leading to an unconvincing judgment.

- Qualifications, capacity and moral qualities of the Judge.

Basic Factors Affecting the Quality of Judgments Resolving Credit Contract Disputes in Court

Judges often play the role of Chairman in the court sessions to resolve credit contract disputes, and are directly assigned the task of adjudicating, representing the State to protect the law. Therefore, to have a quality judgment, Judges need to have a solid knowledge base, understand the law, and must always update new knowledge and regularly improve their professional capacity.

The moral qualities of a judge have a direct impact on the resolution of a case.

The credit contract dispute case was resolved. It is necessary to train and foster the moral qualities of judges to have fair, objective and legal judgments.

- Activities of providing evidence, documents and proof of relevant entities, especially the parties.

In resolving credit contract disputes in court, the responsibility for providing evidence belongs to the disputing parties. Whether the judgment is true to objective truth or not depends largely on the evidence provided by the parties. Before the court, if the parties cannot prove the existence of their legitimate rights and interests, they cannot convince the court to protect their rights and interests. Because in reality, the courts can also make mistakes in determining the details and events of the dispute. Therefore, proving not only has the meaning of ensuring the rights of the parties but also has the meaning of helping the Trial Panel have legal grounds to resolve the case accurately and in accordance with the law.


Chapter 2 Conclusion

For credit institutions that want to survive and develop credit activities, they must also pay attention to limiting disputes that occur in credit activities. The law on resolving disputes that occur in credit contracts at the Court plays a very important role in minimizing risks in resolving bad debts and recovering capital. Thereby, helping credit institutions survive and develop, while also contributing to the stability and development of the monetary market.

Through studying the current situation of resolving credit contract disputes of the People's Court of Phu Tho province, the thesis analyzed the organizational structure of the People's Court of Phu Tho province, evaluated the achieved results, the limitations drawn in the trial process, thereby providing a basis for proposing specific solutions in Chapter 3.

Chapter 3

VIEWPOINTS AND SOLUTIONS TO IMPROVE THE EFFICIENCY OF RESOLVING CREDIT CONTRACT DISPUTES IN COURT FROM THE PRACTICE OF PHU THO PROVINCE


3.1. Viewpoints on perfecting procedures for resolving credit contract disputes at Court

Resolving credit contract disputes at the Court is an important law enforcement activity, demonstrating fairness and legality in issuing legally binding judgments to parties in dispute over rights and interests, contributing to protecting the legitimate rights and interests of the State, organizations and individuals, stabilizing and improving social relations, and promoting civil transactions in accordance with the State's direction. Therefore, the resolution of credit contract dispute cases at the People's Court of Phu Tho province needs to thoroughly grasp and seriously implement the following basic viewpoints:

3.1.1. Thoroughly grasp the Party's viewpoints, guidelines and policies on applying the law in resolving cases in general and resolving credit contract disputes in particular.

In the current national renewal process, our Party has issued many resolutions addressing the issue of both the judicial system and especially Resolution No. 49-NQ/TW dated June 2, 2005 of the Politburo “On the strategy of judicial reform to 2020” and Resolution No. 81/2014/QH13 dated November 24, 2014 “On the implementation of the law on the organization of people's courts”. This issue continues to be mentioned in the Political Reports of the National Congresses of our Party.

As the agency performing the function of adjudicating cases (including cases of credit contract disputes), and being the agency adjudicating at both first instance and appeal levels, the application of the law on procedures for adjudicating credit contract disputes at the People's Court of Phu Tho province in the current period must also be carried out on the basis of thoroughly grasping the Party's viewpoints on this field. These are the Party's guiding viewpoints in documents and Resolutions of the Congresses of Delegates.

nationwide

Properly and fully implementing procedural regulations in the process of adjudicating commercial business cases on credit contract disputes is the basis for contributing to promoting judicial reform, aiming to "Build a clean and strong judicial system, protect justice, respect and protect human rights". Therefore, it is necessary to thoroughly grasp the Party's viewpoints, guidelines and policies on judicial reform in the current period:

First: Judicial reform must be under the close leadership of the Party, ensuring political stability, the nature of the Vietnamese socialist rule of law state of the people, by the people, for the people, state power is unified, with division and coordination among state agencies in exercising legislative, executive and judicial powers.

Second: Judicial reform must originate from the requirements of socio-economic development, building a democratic, fair and civilized society; contribute to promoting socio-economic development, firmly protecting the Fatherland; associated with innovation in legislative work and administrative reform. At the same time, it is necessary to inherit the national legal tradition and the achievements of the Vietnamese socialist judiciary: selectively absorb foreign experiences suitable to the circumstances of our country and the requirements of proactive international integration, meeting the development trends of society in the future.

Third: Judicial reform is carried out urgently, synchronously, with a focus and key points with steady steps. On June 2, 2005, the Politburo issued Resolution No. 49/NQ-TW on the judicial reform strategy until 2020, which sets out the task of building and perfecting the organization and operation of the People's Court in the direction of: Organizing the Court system according to independent jurisdiction, not depending on administrative units, including regional courts of first instance organized in one or several district-level administrative units; Courts of Appeal whose main task is to hear appeals and hear first-instance cases; Courts of Appeal organized by region with the task of hearing appeals, the Supreme People's Court with the task of summarizing trial experiences, guiding the unified application of the law, developing precedents and adjudicating and reviewing cases. The establishment of specialized courts must be based on the reality of trial.

of each level of the Court, each region. Innovating the organization of the People's Court in a streamlined direction with a team of Judges who are leading legal experts with experience in the industry [1].

Fourth: Promote the combined strength of the entire society in the process of judicial reform. Judicial agencies and judicial support agencies must be under the supervision of elected bodies and the people.

The above viewpoints of the Communist Party of Vietnam are the theoretical basis and orientation for the application of law to resolve credit contract disputes of the People's Court in general and the application of law in resolving contract disputes of the People's Court of Phu Tho province in particular.

3.1.2. Specific views on the application of law in resolving credit contract disputes of the People's Court sector in general and the People's Court in Phu Tho province in particular

On the basis of thoroughly grasping the basic viewpoints of our Party stated in section 3.2.1 of the Thesis, it can be seen that the basic viewpoints ensuring effective application of the law in resolving cases in general and credit contract dispute cases in particular of the People's Court of Phu Tho province are:

First : Strengthening the Party's leadership in the application of law in resolving credit contract disputes at the People's Court of Phu Tho province, the Party leads in three aspects: Ideology, organization and staff. Regularly monitoring the activities of the Court, evaluating the ethics and qualities, exemplary role of cadres and Party members in the Court sector, the Party's leadership is demonstrated in the aspect of directing the Court to follow the direction of strict, fair and lawful trials, creating the trust of the masses in the Court in particular and the Party's leadership in general.

Second : Applying the law in resolving credit contract disputes must pay more attention to the issue of reconciliation, stemming from social relations. Credit contract disputes often occur when the parties to the contract cannot agree on the issue that the parties need to resolve. Therefore, when the parties need the intervention of the Court, the Court is the agency that determines the rights.

and obligations of the parties to ensure the legitimate rights and interests as well as the performance of the obligations of the parties. Resolving conflicts between the parties through mediation will help reduce time and costs for the Court as well as the parties involved in the dispute. Therefore, mediation in resolving credit contract disputes must be focused on and given top priority.

The application of law in resolving credit contract disputes when making a decision must pay attention to feasibility and practical implementation to ensure the rights and interests of the parties to the contract.

Third: Increasing litigation in court is one of the important contents in the current judicial reform. Expanding litigation in court will help the parties involved protect their rights and interests and help the trial of the Court at all levels improve the quality when issuing judgments and decisions to avoid errors in litigation activities.

Based on the basic principle of resolving civil disputes in general and resolving credit contract disputes in particular, the right to self-determination and self-determination belongs to the parties. The application of law in resolving credit contract disputes not only allows the Court to designate the application of legal norms to resolve disputes, but also demonstrates the equality of the parties participating in the legal relationship.

Fourth: Strengthen training, fostering, building and developing a team of Judges and People's Assessors who meet the professional and legal requirements to handle credit contract dispute cases in sufficient quantity and quality.

3.2. Solutions to improve the efficiency of resolving credit contract disputes at Court

3.2.1. Legal solutions to limit disputes arising from credit contracts

First: It is necessary to perfect the legal regulations on lending interest rates in credit contracts. The parties involved in a credit contract always have an agreement on interest rates, collateral, and the handling of collateral as stipulated in the contract or other agreements between the credit institution and the party.

Borrowing capital. In case the borrower fails to repay the loan on time, they must repay the principal, interest on time and overdue interest to the credit institution. However, the application of overdue interest rates by credit institutions to customers with overdue debt in practice still has many shortcomings, not in accordance with the provisions of the law. In the process of resolving credit contract disputes, the application of legal provisions on loan interest rates and overdue interest rates at credit institutions and the Court still has many shortcomings.

According to Clause 2, Article 305 of the 2005 Civil Code, it is stipulated that: “In case the obligated party is late in paying, that party must pay interest on the late amount at the basic interest rate announced by the State Bank corresponding to the late payment period at the time of payment, unless otherwise agreed or otherwise provided by law” [23, Article 305]. In addition, Clause 5, Article 474 of the 2005 Civil Code stipulates: “In case of an interest-bearing loan, if the borrower fails to repay or does not repay in full when due, the borrower must pay interest on the principal and overdue interest at the basic interest rate announced by the State Bank corresponding to the loan term at the time of repayment” ; Clause 1, Article 476 of the 2005 Civil Code stipulates: “The loan interest rate is agreed upon by the parties but must not exceed 150% of the basic interest rate announced by the State Bank for the corresponding type of loan” [23, Article 476]. These regulations represent unreasonable imposition and are creating legal risks for lending activities in general and lending activities of credit institutions in particular. According to Clause 1, Article 12 of the Law on the State Bank of Vietnam 2010, "The State Bank shall announce refinancing interest rates, base interest rates and other interest rates to manage monetary policy and combat usury " [31, Article 12]. The Civil Code stipulates that interest must be paid on principal and overdue interest at the base interest rate announced by the State Bank corresponding to the loan term at the time of repayment and the interest rate ceiling does not exceed 150%, also with the purpose of combating usury. However, setting a rate of 150% is not appropriate because the basic interest rate is often considered a guiding interest rate and is very low compared to the market interest rate (In fact, most lending organizations and individuals must apply an interest rate exceeding the maximum interest rate prescribed in the Civil Code). According to this regulation, the mobilization interest rate and

Lending interest rates (borrowing and lending), based on the calculation of overdue interest rates of credit institutions, are determined on the basis of and are strictly legally bound to the basic interest rate announced by the State Bank corresponding to the loan term at the time of repayment. These regulations have proven to be unrealistic and always hinder the development of credit institution activities because it is like an administrative order that credit institutions must comply with while the market requires freedom. On the other hand, such regulations on interest rates can make credit contracts invalid due to violations of the provisions of the 2005 Civil Code on lending interest rates. In fact, there are times when the State Bank applies a maximum deposit interest rate ceiling of 15%/year, lending interest rates are from 18.5%-24%, while the basic interest rate announced by the State Bank is 9%/year.

Currently, the provisions of the 2005 Civil Code in Clause 5, Article 474 and Article 476 have created a constraint on the development of lending activities of credit institutions, no longer consistent with the ongoing lending activities of the free market economy on interest rate agreements. Therefore, these provisions have been amended and replaced by Clause 5, Article 466 and Article 468 of the 2015 Civil Code, which were issued and took effect from January 1, 2017. The provisions on interest rates have been changed to be consistent with the direction of regulating the right to agree on interest rates of the parties participating in credit contracts on the basis of voluntary equality of the participating entities to ensure the restriction of usury. Specifically:

- Article 468 of the 2015 Civil Code stipulates:

“1. Loan interest rate is agreed upon by the parties.

In case the parties have agreed on the interest rate, the agreed interest rate shall not exceed 20%/year of the loan amount, unless otherwise provided by other relevant laws. Based on the actual situation and upon the proposal of the Government, the Standing Committee of the National Assembly shall decide to adjust the above interest rate and report to the National Assembly at the nearest session. In case the agreed interest rate exceeds the maximum interest rate prescribed in this clause, the excess interest rate shall not be effective.

2. In case the parties have an agreement on interest payment, but do not clearly specify the interest rate and there is a dispute about the interest rate, the interest rate shall be determined at 50% of the maximum interest rate prescribed in Clause 1 of this Article at the time of debt repayment.” [24, Article 468].

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