Improvement of 18 Card Companies Operating Non-Provided Additional Service Products to Be Completed Within the Year
The Financial Supervisory Service (FSS) will pursue three tasks: improving the practice of providing additional services by credit card companies, enhancing guidance related to the use of credit card services, and strengthening the notification of the right to request interest rate reductions for loan users.
On the 7th, the FSS held the '6th Fair Finance Promotion Committee' meeting and reviewed these three tasks. There was an issue where some credit card companies did not promptly refund additional services that were not provided due to exceeding the standard limit, even when the limit was restored due to payment cancellations. According to the FSS, the total refund amount for unprovided additional services (points, cashback, billing discounts) over the past five years reached 2.92 billion KRW.
Accordingly, the FSS plans to improve the practice of providing additional services by credit card companies and enhance related terms and systems. When the limit is restored due to payment cancellations for additional services not provided because of exceeding the standard limit, prompt refunds will be ensured. To this end, system improvements for all 18 credit card companies will be completed within the year, and the standard terms and conditions will explicitly include provisions related to post-settlement of additional services to inform consumers.
Guidance on credit card service usage conditions will also be enhanced so that credit card users can properly understand 'interest-free installments' and the 'method of deducting performance for payment cancellations.' The content of interest-free installment promotions and any changes or suspensions will be improved for easy confirmation by users, and the method of deducting usage performance for payment cancellations will be clearly stated in product terms and included in monthly usage performance notifications.
To encourage loan users to actively utilize the right to request interest rate reductions, guidance on application requirements will be strengthened. The application requirements for the right to request interest rate reductions will be explained specifically and comprehensively, and a wide range of accessible communication channels will be used when sending notification messages to facilitate borrower access. Additionally, reasons for rejection will be notified in detail to increase borrower acceptance of review results, and borrowers will be enabled to properly recognize and manage their credit status regularly.
Kim Mi-young, Head of the Financial Consumer Protection Department at the FSS, evaluated, "Tasks closely related to daily life, such as preventing the omission of credit card additional service benefits and strengthening guidance on the right to request loan interest rate reductions, were appropriately addressed to protect the legitimate interests and rights of financial consumers," and added, "From the financial companies' perspective, improving systems and strengthening guidance are important, but from the financial consumers' perspective, knowing well and utilizing these rights is equally important. Therefore, we ask for careful attention to related promotions in the future."
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