Number of Prepaid Installment Payment Companies Decreases by One to 77... Daenoraifeu Registration Canceled

Fair Trade Commission Discloses Major Information Changes of Prepaid Installment Transaction Companies in Q4 Last Year

[Image source=Yonhap News]

The Fair Trade Commission announced on the 29th that the number of prepaid installment transaction registrants stood at 77 as of the end of the fourth quarter last year, down by one from the previous quarter.

During this period, a total of 13 changes occurred across 11 companies, including registration cancellations, consumer damage compensation insurance contracts, and name changes. Hyogyeong Life changed its name to Sunbokum Life, and Tour Sesang changed to Hyundai Tour Plan.

Freed Life added a debt payment guarantee contract with Industrial Bank of Korea, and five companies including Boram Sangjo Plus changed their representatives. Daeno Life had its registration canceled due to contract termination for deduction caused by unpaid cancellation refunds.

Prepaid installment transactions are transactions where the product price is paid in advance over a certain period, with funeral service being a representative example.

The Fair Trade Commission emphasized, "Consumers intending to enter into prepaid installment contracts should carefully review the business status of the contracting company and notices from consumer damage compensation insurance institutions such as mutual aid associations and banks to prevent damages caused by business closures or registration cancellations."

Meanwhile, starting from March, with the implementation of the advance payment notification system, consumers of prepaid installment transaction businesses will be able to receive information such as payment amounts and payment frequency at least once a year.