Financial Supervisory Service Issues 'Warning' on Credit Card Revolving Service

[Asia Economy Reporter Kim Jin-ho] The Financial Supervisory Service (FSS) has issued a consumer alert of "caution" regarding enrollment in credit card revolving services. As the number of users and transaction amounts increase, complaints about incomplete sales continue to occur, urging consumers to exercise special caution.

According to the FSS on the 12th, as of the end of June, the number of customers using the revolving service reached 2.74 million, an increase of more than 50,000 from 2.69 million at the end of last year. The transaction amount also rose from 6.2 trillion KRW to 6.4 trillion KRW during the same period.

However, the FSS reported that complaints about incomplete sales, such as being enrolled without applying for the revolving service or being informed that it was an interest-free service, continue to occur. In the first half of this year alone, 54 complaints were received.

The revolving service is a credit card payment method where only a portion of the credit card bill is paid, and the remaining balance is carried over to the next month, with interest charged on the carried-over card debt.

However, the FSS pointed out that consumers should be aware that revolving means carrying over part of the payment amount to the next payment date and bearing high interest on the carried-over amount.

It also added that frequent use of revolving can lead to poor spending habits by consuming beyond income without a repayment plan.

Accordingly, the FSS advised financial consumers to regularly check whether they are enrolled in revolving services and, if enrolled without their consent, to request cancellation through the card company's customer center.

Furthermore, it emphasized that consumers should carefully review the revolving service guide provided at the time of enrollment and make a decision after fully understanding it.

An FSS official stated, "We will continue monitoring complaints related to revolving services and guide credit card companies to fulfill their duty to provide thorough explanations and strengthen internal controls regarding revolving services."

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