[Asia Economy Reporter Song Hwajeong] Starting from August, customers of credit card companies and installment finance companies will be able to compare and check the performance of interest rate reduction request systems operated by each company.
On the 16th, the Financial Services Commission announced that it had approved the amendment to the "Regulations on the Supervision of Specialized Credit Finance Companies."
The amendment includes contents such as extending the validity period of credit card solicitors' education and the comparative disclosure of the performance of interest rate reduction request systems.
Currently, customers using card loans, revolving credit, and other loans from specialized credit finance companies can request an interest rate reduction if their credit status improves, but they could not check the performance of the interest rate reduction request system by company. According to the amendment, starting from the first half of this year, the performance will be compared and disclosed, making it possible to verify. The performance of the interest rate reduction request system will be posted on the internet homepage of the Korea Federation of Specialized Credit Finance on or before August.
Additionally, according to the amendment, the validity period of education when registering as a credit card solicitor will be extended. Previously, those who wanted to register as credit card solicitors had to complete education organized by the Korea Federation of Specialized Credit Finance within one month of registration, but from now on, education completed within one year prior to registration will be valid. For example, if someone wants to register as a credit card solicitor for the first time on May 1, previously they had to complete the solicitor education in April, but now education completed within one year before registration will be accepted. Also, if someone registered as a credit card solicitor on May 1 this year and wants to re-register by changing credit card companies on July 1, previously they had to retake the solicitor education in June, but now, since they have already completed the education within one year, they do not need to take it again.
The amended Regulations on the Supervision of Specialized Credit Finance Companies approved on this day will take effect from the 1st of next month.
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