From July, Family and Acquaintances of Debtors Also Eligible for Debtor Representative Support
The Financial Services Commission's case of 'Expanding Free Legal Support for Debtor Representatives' was selected as one of the 'Top 5 Best Cases of Proactive Administration Chosen by the Public' in the 3rd Proactive Administration Best Practices vote hosted by the Office for Government Policy Coordination.
According to the FSC on the 14th, the debtor representative system is designed to protect and assist victims who have suffered from illegal debt collection by unregistered lenders or have received loans exceeding the statutory maximum interest rate. It provides free support for appointing debtor representatives (lawyers). Since its implementation in 2020, approximately 15,000 debtor representatives have been supported as of last September, establishing itself as a representative legal relief service.
The existing debtor representative support system only provided assistance to the debtor themselves, which had limitations in protecting family members or acquaintances from 'acquaintance collection'?illegal debt collection targeting the debtor's family or acquaintances. Accordingly, the FSC expanded the scope of debtor representative support to include 'the debtor and their related persons' from July 5th, allowing family members and acquaintances of debtors who suffered illegal debt collection to receive free legal services equivalent to those provided to the debtor.
Related persons of the debtor include ▲ those living with or sharing livelihood with the debtor ▲ relatives of the debtor ▲ those working at the same workplace as the debtor. When a related person is selected as a debtor representative support recipient, the Korea Legal Aid Corporation provides legal consultations to respond to illegal debt collection activities and notifies the illegal debt collectors of the 'prohibition of contact with the related persons.'
Related persons who have suffered or are at risk of illegal debt collection can apply online through the Financial Supervisory Service website. If online application is difficult, they can apply via telephone consultation at the FSS Illegal Private Loan Reporting Center.
Kim Jin-hong, Director of the Financial Consumer Protection Bureau, stated, "Through this expansion of the support scope, we can directly protect related persons who have suffered from illegal debt collection." He added, "As illegal debt collection methods are becoming increasingly malicious, we will continue to respond swiftly and proactively to ensure no gaps occur in victim protection."
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