Deposit scam baiting rent support surges... Financial Supervisory Service issues consumer alert

"Do Not Make Side Contracts with Anyone"

[Asia Economy Reporter Kim Hyo-jin] Office worker A learned about a used car dealership through internet blog reviews and other sources and, while checking the lease fee for a vehicle he was interested in, met B, the operator of the dealership and a fraudster. B told A, who hesitated due to the somewhat high lease fee, that "there is a way to lower the lease fee," proposing that if A paid only a deposit, he could receive monthly subsidies and later get the deposit refunded.

Trusting B's words, A authenticated himself using his mobile phone, signed a lease contract through a financial company's mobile loan program, made a separate side agreement with B, and sent the deposit to B. B reassured A by depositing the promised subsidies for about three months but then cut off contact and disappeared with the deposit. As a result, A not only lost the deposit but also suffered damages by having to pay the full lease fee agreed upon with the financial company.

Cases of fraud where deposits are solicited under the pretense of subsidizing part of the lease fee paid to financial companies during used car lease contracts and then embezzled are occurring frequently. Accordingly, the Financial Supervisory Service (FSS) announced a consumer alert of "caution" on the 29th. From July until the 23rd of this month, a total of 100 complaints related to automobile lease support contracts were received by the FSS.

Regarding used car leases, the FSS advised that financial companies do not enter into side agreements, so regardless of whether the dealership is affiliated with the financial company, no side agreements should be made with anyone. The FSS also emphasized that deposits related to side agreements cannot be reclaimed from the financial company and that lessees must recover such amounts through lawsuits or other means, as dispute resolution procedures by supervisory authorities are not available, making remedies limited and requiring special caution.

If it is unavoidable to pay some amount in advance to reduce the monthly lease fee burden, it is essential to verify that the amount is listed under the "deposit" or "prepayment" section in the financial company's lease contract.