[Gi Ha-yeong's Lifestyle Card] Gym Eat-and-Run, Remaining Balance Notice Allowed for Installment Payments

Right to Raise Objections and Withdrawals Available for Installment Payments
Conditions: Over 200,000 Won and Installments of 3 Months or More

[Asia Economy Reporter Ki Ha-young]Is there anyone these days without at least one credit card? In modern society, anyone can have a card if they want. Credit cards have brought unparalleled convenience to daily life. Now, you can easily see people paying with credit cards or smartphones wherever you go. As demand has increased, cards with various benefits are being released almost daily. Accordingly, Asia Economy delivers various stories related to cards, which are inseparable from our consumer life, through the weekly 'Cards in Daily Life' corner, from introducing new cards to industry behind-the-scenes and guides for card beginners.

[Image source=Yonhap News]

#. Office worker Lee (32) received one-on-one PT consultation at a gym near his home. It was not a cheap amount at 800,000 won for 10 sessions, but he made up his mind and paid the tuition in a lump sum on the spot. He was satisfied until he took four sessions. The problem occurred afterward. The gym closed down midway, making it difficult to get a refund for the remaining sessions.

#. Office worker Kim (28, female), who was about to get married, decided to receive skin care. She found a skin care clinic near her company and paid 2,000,000 won for 24 sessions in 6-month installments. However, the skin care clinic, whose business environment worsened, filed for closure, making it impossible to refund the membership. With the card installment payments still remaining, Kim felt distressed every time she saw the money being deducted regularly.

Lump sum or installment? When the amount paid by credit card is large, it becomes a dilemma. Especially when gyms or skin care clinics offer discounts for lump sum payments, it is even more so. However, if you want a safe transaction, paying by credit card installments can be a better choice.

Have you heard of 'withdrawal rights' and 'defense rights'? You can check these on the back of your credit card receipt. In the case of installment transactions, consumers can exercise these two rights.

The defense right allows you to refuse payment of the remaining installment balance if the installment contract is not properly fulfilled. According to the Installment Transactions Act, it applies when the installment contract is invalid, canceled, or terminated; when all or part of the goods are not delivered; or when the merchant’s non-performance prevents achieving the purpose of the installment contract.

However, there are conditions for exercising the installment defense right. The purchase amount must be 200,000 won or more, and the installment period must be three months or longer. If the amount is less than 200,000 won, or if you paid in a lump sum or in two-month installments, you cannot exercise the defense right. Also excluded are products such as agricultural, fishery, and livestock products that are not subject to the Installment Transactions Act. In the above cases, Lee, who paid for the gym membership in a lump sum, cannot exercise the defense right, but Kim, who paid for the skin care membership in six-month installments, can exercise the defense right and does not have to pay the remaining installment amount to the card company.

To exercise the defense right, you must send a certified letter to the card company. The certified letter should be written in detail according to the five Ws and one H, including the purchase date, merchant name, card number, phone number, and the reason for requesting the defense right.

The withdrawal right allows you to request a refund within seven days after purchasing goods on credit card installments. Like the defense right, the withdrawal right can be applied only if the amount is 200,000 won or more and the installment period is three months or longer. In short, it is a safety device to protect consumers from impulsive purchases. However, products such as cars, software, refrigerators, washing machines, etc., whose value may decrease even after one use, are excluded from the withdrawal right.

Although installment transactions guarantee withdrawal and defense rights, except for 2-3 month interest-free installments, fees vary depending on the installment period. Generally, the longer the installment period, the higher the fees. Whether to pay in a lump sum or installments should be chosen according to your circumstances.

This content was produced with the assistance of AI translation services.