[Ki Ha-young's Life Card] Card Terms Changing from Next Year, Cash Services Require Application

Cash Service Requires Separate Application
Strengthened Right to Withdraw Card Loans
Card Points Also Inheritable

[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, wherever you go, you can easily see people paying with credit cards or smartphones. 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.

Photo by Yonhap News

Starting next year, several aspects of credit card use, such as cash advances and card points, will be improved. This is to enhance the rights of individual credit card members and establish sound credit card transaction practices. The Financial Supervisory Service has revised the 'Standard Terms and Conditions for Individual Credit Card Members' in cooperation with the card industry.

Cash Advances Available Only Upon Separate Application

First, when issuing a new credit card, cash advances will only be available if separately applied for. Until now, when a new credit card was issued, a cash advance limit was automatically set. Since it was automatically set regardless of the customer's intention, problems such as disputes could arise if the card was stolen or lost. Accordingly, from next year, cash advances will only be available if applied for at the time of card issuance. Also, to use cash advances after card issuance, a separate credit review must be conducted.

If Card Loan is Repaid Early Within 14 Days... Use the 'Right of Withdrawal'

Additionally, the right of withdrawal for loan contracts will be strengthened. If a card loan is repaid early within 14 days, consumers can exercise the right of withdrawal for the loan contract. However, until now, early repayment was processed without confirming the consumer's intention. In the case of card loans, if processed as a withdrawal, the loan record is deleted, but if processed as early repayment, the loan record is not deleted, which may affect credit ratings. Therefore, from next year, if the debtor's intention to withdraw is unclear, guidance will be provided that the right of withdrawal can be used, and the debtor will be allowed to choose.

Card Points Also Inherited... Points Rounded

From next year, card points can also be inherited. Until now, there was no system to inform heirs of remaining card points when a card member died. From next year, if a card company learns of a member's death through heirs' financial transaction inquiry applications, it plans to inform them of the points held and inheritance methods. The point accumulation method and inheritance procedures will be announced on websites, and points borne by the card company will be rounded or rounded up according to the payment amount. However, partnership points borne by merchants are excluded due to contract issues with partners.

Card Company Notices? You Can Also Receive Them via 'KakaoTalk'

Also, you can receive card company notices via KakaoTalk. Currently, the means for card companies to notify customers about card use are limited to written documents, phone calls, emails, and mobile text messages (SMS). From next year, it will be possible for card companies to notify customers about card use via mobile messages (such as KakaoTalk). However, prior consent from customers must be obtained, and data cost occurrences must be informed. If sending fails, it is mandatory to resend via text message.

In addition, the notification cycle for members not using revolving credit will be shortened from the current 18 months to 12 months, and the notification methods will be expanded to two or more, including written documents, phone calls, emails, and mobile messages. When notifying about the planned extension of revolving credit, it will be more clearly explained that if there is no expression of intent to cancel, it will be considered as consent to the extension. Also, when issuing family cards, it will be prohibited to collect the primary cardholder's overdue debts from family members.

Although the 'Standard Terms and Conditions for Individual Credit Card Members' are being revised to enhance consumer rights, consumers cannot utilize them if they are unaware. Since useful services such as cash advances, card points, and revolving credit are improved, please carefully check the changes and confidently enjoy your rights.

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