'Eradicating Illegal Loan Businesses'... Gyeonggi-do Launches Joint Inspections in the First Half of the Year

From April 13 to June 23, 134 Loan Companies Targeted
Investigation and Prosecution Planned if Illegal Activities Are Found

Illegal Loan Business Advertisement Leaflet [Asia Economy DB]

[Asia Economy Reporter Ra Young-cheol] Gyeonggi Province has launched a joint inspection of illegal activities by loan companies in cooperation with the Financial Supervisory Service and related agencies.

Gyeonggi Province announced on the same day that "to establish a fair loan industry order and prevent financial damage to low-income people, from the 13th to June 23, 2021, we will conduct the '2021 First Half Joint Inspection of Loan (Brokerage) Companies.'

The province, together with the Financial Supervisory Service, city and county offices, and the police, has formed joint inspection teams of three members each to focus on a total of 134 companies, including those that did not submit reports during the second half of last year's survey, companies with complaints, companies holding a large number of loan (brokerage) transactions and amounts, and companies deemed necessary for inspection by city and county offices.

The inspection teams will verify whether there are any illegal acts that resulted in unfair profits by checking the appropriateness of income verification for loans exceeding 3 million won, the appropriateness of interest rate collection, and illegal debt collection practices.

They will also inspect the distribution of illegal floating advertisements (business cards, flyers, etc.) that adversely affect the livelihood economy and compliance with loan advertising standards.

In addition, they will check whether fixed business premises have been secured (usage rights for more than six months), whether loan business registration certificates and loan condition tables are posted, and whether major changes such as location, phone number, and executives have been properly registered to ensure lawful operation of business sites.

If violations are found as a result of the inspection, administrative measures such as business suspension, fines, and registration cancellation will be taken, and cases of interest rate violations, illegal debt collection, or unregistered loan companies will be referred to the police for investigation or prosecution.

If you suffer damage or witness cases of violations such as exceeding the legal maximum interest rate for loan business operations, illegal advertising, or illegal debt collection, you can report to the Gyeonggi Province Low-Income Financial Welfare Support Center (031-888-5550~1) or the Financial Supervisory Service (1332) for assistance.

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