Insurance Sales Calls Must Be Pre-Notified... Right to Request No Contact Also Established

Nighttime Visit Sales Ban... Bulk Rejection of Calls Also Allowed

From now on, financial companies must notify consumers in advance if they intend to sell financial products through visits or phone calls. Additionally, consumers will be able to request that financial companies prohibit solicitation contacts regarding financial products.

The Financial Services Commission announced that the amendment to the Enforcement Decree of the Financial Consumer Protection Act, which includes these provisions, was approved at the Cabinet meeting on the 25th and will be enforced together with the revised Financial Consumer Protection Act starting from the 12th of next month.

According to the amendment, financial product door-to-door salespersons must inform consumers in advance before a visit that the visit or call is for sales solicitation purposes, and provide the salesperson’s name, the type of product being sold, and details about the product.

Furthermore, financial companies must prepare a list including the salesperson’s name, affiliation, phone number, and registration number, and must verify the identity of the salesperson at any time upon consumer request.

If consumers do not wish to receive solicitation contacts from financial companies, they can contact the company’s website or call center, or use the financial sector’s Do Not Call system to collectively reject contacts from multiple financial companies. However, if after requesting contact prohibition, the consumer separately consents to marketing reception from the financial company, the company may contact them.

Nighttime door-to-door sales will also be prohibited. According to the amendment, financial companies will not be allowed to conduct nighttime visits or sales from 9 p.m. to 8 a.m. the following day, except in cases where the consumer specifically requests such contact.

In cases of disputes regarding the 'provision of contract documents,' the scope of financial companies’ responsibility will be expanded. Financial companies must prove not only the fact of providing contract documents but also the fact and timing of contract conclusion.

Additionally, lawsuits related to door-to-door sales and non-face-to-face financial product contracts will be exclusively under the jurisdiction of the district court that has authority over the consumer’s address (or residence). This is to ensure that financial consumers, who may have less litigation capability compared to financial institutions, can smoothly seek remedies for their rights.

An official from the financial authorities stated, "To ensure the stable establishment and operation of the system, we will continuously monitor the status of system construction such as identity verification and contact prohibition requests by financial companies, mainly through financial industry associations, and strengthen training for door-to-door salespersons."