Debt collection cannot be demanded anytime... Jugumgong introduces 'Request for Restriction on Collection Contact' rights

Overview of Measures to Alleviate Delinquency and Collection Burden
[Photo by Korea Housing Finance Corporation]

[Asia Economy Reporter Song Seung-seop] The Korea Housing Finance Corporation is introducing the right to request restrictions on debt collection contacts for the first time in the financial sector.

On the 3rd, the Korea Housing Finance Corporation announced that it will implement the "Delinquency and Debt Collection Burden Relief Plan" to protect debtors suffering from excessive debt repayment demands and to support their rehabilitation.

According to the plan, a right to request contact restrictions will be established for debtors of housing guarantee non-performing loans such as jeonse deposits. Debtors can request the corporation to prohibit debt collection contacts during specific times, methods, or means. Contact restrictions can be applied for up to 4.5 hours within the corporation's business hours from 9 a.m. to 6 p.m.

The maximum number of debt collection contacts is also limited to twice per day and seven times per week. Debt collection contacts refer to actions of contacting debtors via phone calls, emails, text messages, mail, or visits. This is a strengthening from the previous limit of no more than twice per day. However, contacts made with the debtor's consent or request, or those necessary for the debtor, are not counted in the limit.

A corporation official emphasized, "This policy aims to reduce the excessive pressure of debt collection on debtors struggling with repayment," adding, "We will take the lead in establishing a sound debt collection order so that debtors can maintain a stable life."

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