With the Enforcement of the Financial Consumer Protection Act... Loan Solicitor Council to be Established

Need for Operation Council Due to Enforcement of Financial Consumer Protection Act
Loan Solicitor Registration to Be Completed by Year-End

[Asia Economy Reporter Ki Ha-young] A council for the operation of loan product sales agents and brokers will be established following the enforcement of the Financial Consumer Protection Act (FCPA). This will create a consultative body to discuss and manage matters related to more than 40,000 loan solicitors in the credit industry.

According to the Credit Finance Association on the 13th, regulations for a consultative body to discuss matters related to the operation and management of loan product sales agents and brokers under the FCPA will be prepared. The Credit Finance Association plans to collect opinions by the end of this month.

With the end of the FCPA grace period on the 25th of last month, loan solicitors must now register with the Financial Supervisory Service and each financial sector association to conduct business. They must also undergo education and evaluation for qualification certification. However, due to the longer-than-expected inquiry period for disqualification checks by related institutions among registration requirements, the deadline for existing loan solicitors to apply for association registration has been extended until the 24th. The plan is to complete registration for all applicants within this year.

The association explained that with the enforcement of the FCPA, new qualification standards for loan solicitors have been established, and loan solicitors are now legally subject to management and supervision, making the establishment of an operational consultative body necessary. In the card industry, such an operational council is already in place.

The operational council will be composed of up to 20 members, including the chairperson. Considering the number of loan solicitors registered with the Credit Finance Association, executives responsible for loan product sales agent and broker operations from companies such as Shinhan, Samsung, Woori Card, Hyundai, KB, NH Nonghyup, Lotte, Meritz, Woori Financial, BNK, and JB Woori Capital will participate as members. Key matters for consultation include the operation of loan product sales agents and brokers, the establishment and revision of regulations, and budget and settlement issues.

The Credit Finance Association estimates that the number of loan solicitors in the industry will be at least 40,000. This figure includes not only general loan product solicitors but also lease and installment solicitors such as car dealers. An industry official said, "With the enforcement of the FCPA, supervision of loan solicitors has begun, and an operational council to discuss these matters has become necessary," adding, "So far, 80-90% of loan solicitors have completed their registration applications, and all registrations are expected to be completed by the end of the year."