Operation from the 6th until the end of this year
#Mr. A, who has a low credit rating, found it difficult to use the primary and secondary financial sectors, so he inquired about a loan from Company B through an online loan brokerage site. Shortly after, Mr. C contacted him, stating that an emergency contact network was necessary for loan approval and requested phone numbers of family, acquaintances, and coworkers. In urgent need of funds, Mr. A reluctantly provided them. The loan amount was 500,000 KRW, but the amount to be repaid after one week was 800,000 KRW, bearing an exorbitant interest rate of about 3000%. When repayment was delayed, Mr. C changed his KakaoTalk profile to a photo of Mr. A's ID card and continued to threaten him by saying he would contact family and acquaintances or by using abusive language.
As concerns grew that online loan brokerage sites are being used as major contact points for illegal private loans, the Financial Supervisory Service (FSS) announced on the 5th that it will operate a special reporting period from the 6th until the end of this year.
According to the FSS, there have been cases where financial consumers contacted 'registered loan companies' advertised on online loan brokerage sites but were connected to illegal private loan companies, suffering from high interest rates and illegal debt collection. The FSS suspects that the same individual operates both registered loan companies and illegal private loan companies simultaneously, promoting illegal private loans under the name of registered loan companies, or that registered loan companies provide or sell customer information to illegal companies.
During the special reporting period, the FSS plans to jointly inspect the operation status of online loan brokerage sites with local governments and the police, and if illegal activities are confirmed, they will request investigations. The Korea Financial Investment Association will also continue monitoring activities to prevent illegal private loan damages on online loan brokerage sites.
The FSS urged the public to actively report online loan brokerage sites where illegal private loan damages have occurred, as well as the names and phone numbers of registered loan companies and illegal private loan companies.
An FSS official said, "Only registered loan companies are allowed to advertise on online loan brokerage sites, but there are cases where they are linked to illegal private loans," advising, "Consumers should re-verify whether the counterparty is a registered loan company through the integrated search of registered loan companies on the financial consumer information portal 'Fine'." He added, "If you inquire about a loan from a registered loan company advertised on an online loan brokerage site but are contacted by another company, you should immediately stop the consultation."
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