Toss Bank Temporarily Suspends Card Loan Refinancing

[Asia Economy Reporter Bu Aeri] Toss Bank has temporarily suspended its card loan refinancing service, which was launched on a trial basis last month.

According to Toss Bank on the 7th, the card loan refinancing service was recently halted, and the resumption schedule is undecided.

Toss Bank had been operating the service on a trial basis targeting Samsung Card's card loans and had plans to expand the eligible card companies. A Toss Bank official explained, "We temporarily suspended it due to some issues that need to be checked."

Previously, Toss Bank launched a service that converts card loans into bank credit loans, but it faced opposition from the card industry.

The card industry pointed out concerns such as the 'web scraping' method used by Toss Bank to collect card loan information, which could be vulnerable in terms of security.

At the meeting between Financial Supervisory Service Governor Lee Bok-hyun and CEOs of specialized credit finance companies on the 5th, concerns from the card industry regarding this service were also conveyed. Regarding this, Governor Lee told reporters, "The credit finance industry has provided opinions, and we will review those opinions along with regulatory relaxation and the creation of a fair competitive environment together with the Financial Services Commission and the task force (TF) for the revision of the Specialized Credit Finance Business Act that is currently underway."