Expansion of Debtor Representative Appointment Targets
Support to Be Provided for Up to 5 Representatives per Debtor
The Korea Legal Aid Corporation (Chairman Lee Jong-yeop), which provides free legal consultation and litigation representation services to socially and economically disadvantaged individuals who are financially struggling or lack legal knowledge, has decided to expand its support targets to include not only the victims of 'illegal debt collection' but also their family members and acquaintances.
On the 4th, the Corporation announced that starting from the 5th, it will provide free legal services regarding illegal debt collection practices by lenders not only to the debtors themselves but also to their family members, acquaintances, and related parties.
Since 2020, the Corporation has been supporting the appointment of debtor representatives free of charge for financially vulnerable groups who have suffered from illegal debt collection by lenders or have entered into loan contracts exceeding the statutory maximum interest rate (20% per annum), under an agreement with the Financial Services Commission.
However, as malicious illegal debt collection practices by lenders have been indiscriminately carried out not only against debtors but also against their family members, coworkers, and others related to the debtors, legal support for these individuals has become necessary.
Accordingly, the Corporation and the Financial Services Commission have decided to support the appointment of debtor representatives free of charge for up to five related persons per one debtor. Related persons include those living with or sharing livelihood with the debtor, the debtor's relatives, and those working together at the debtor's workplace.
A representative of the Corporation stated, "Since illegal debt collection indiscriminately targets people around the debtor, support for these individuals is also necessary at this time," and added, "We plan to actively provide support in cooperation with related organizations."
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