[Asia Economy Reporter Song Seung-seop] The Korea Credit Finance Association announced on the 26th that it has published a counseling casebook titled "The Financially Marginalized Driven to Illegal Private Loans," which organizes the support status for consultations on high-interest illegal private loan damages by type.
According to the association, the casebook consists of 60 cases of illegal private loan damage consultations and various damage statistics. It also includes cases from the past year involving illegal debt collection and high-interest interest collection targeting financially marginalized individuals struggling due to the novel coronavirus infection (COVID-19), as well as cases recruiting users through illegal direct loan transaction sites and blogs on internet portal sites.
Examples of typical illegal private loan damages presented by the association include frequent verbal abuse and threats, deducting advance interest, and charging excessive interest. For instance, collecting 800,000 KRW per week in extension interest and cursing when contacted for adjustment, or charging 60,000 KRW daily in interest despite borrowing only 2 million KRW.
The association stated that by publishing this casebook, it aims to guide and disseminate increasingly sophisticated damage types and contribute to enhancing the general public's ability to respond to illegal private loans.
Im Seung-bo, president of the Korea Credit Finance Association, said, "The association will continue to carry out damage consultation and debt adjustment support work to protect users of illegal financial services," adding, "We will strive to ensure that registered credit finance companies fulfill their roles as providers of financial services for ordinary citizens."
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