Financial Services Commission Holds Online Public Hearing on Strengthening Debtor Protection under the Consumer Credit Act

Held on the 15th at 9 AM on YouTube and other platforms

[Asia Economy Reporter Kim Hyo-jin] The Financial Services Commission announced on the 13th that it will hold an online public hearing on the "Consumer Credit Act" to gather opinions from key stakeholders and experts on the 15th.

The public hearing will be held for two hours from 9 a.m. to 11 a.m., and participation is possible by entering "Consumer Credit Act Online Public Hearing" on the Financial Services Commission's YouTube page and Naver blog.

Attendees at the public hearing include officials from the Financial Services Commission, the Korea Federation of Banks, the Credit Information Association, the Loan Finance Association, the Credit Recovery Committee, as well as Professor Lee Dong-jin of Seoul National University and Senior Research Fellow Park Chang-gyun of the Korea Capital Market Institute.

The Consumer Credit Act bill, prepared and announced by the Financial Services Commission last September, aims to strengthen the debtor protection responsibilities of creditors and debt collectors and expand the debtor's right to defense.

The Consumer Credit Act allows debtors who have defaulted on debt repayment to submit evidence proving difficulties in repayment, such as income or asset status, and request debt adjustment from creditor financial institutions.

Financial Services Commission's explanatory materials on the purpose and key contents of the Consumer Credit Act enactment.

The Consumer Credit Act also prohibits debt collection or transfer of claims until the notification of the review results if an individual debtor has requested debt adjustment or requested debt adjustment from the Credit Recovery Committee under the existing system.

The total limit on debt collection contacts will also be promoted through the Consumer Credit Act. The core is to prohibit debt collectors from contacting more than seven times a week. If the debt collector has confirmed repayment ability through debt collection contacts, they must not contact for the next seven days.

The Financial Services Commission has decided to introduce a debt adjustment negotiation business. A debt adjustment negotiator can prepare and submit debt adjustment requests and negotiate on behalf of individual debtors who lack expertise and negotiation skills.

They can also act as agents for the Credit Recovery Committee's debt adjustment reception, manage repayment status, and provide financial counseling. Currently, third-party assistance or agency is not allowed during debt adjustment with the Credit Recovery Committee.

The Financial Services Commission plans to submit the Consumer Credit Act to the National Assembly in the first quarter of next year after processes such as public hearings and legislative notices.

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