FSS "Fast-Track Processing for Livelihood Complaints from Vulnerable Groups"

[Asia Economy Reporter Song Hwajeong] The Financial Supervisory Service (FSS) has introduced proactive administrative measures for debt collection complaints concerning vulnerable groups, including fast-tracking the prompt handling of livelihood-related complaints from these groups.

According to the FSS on the 13th, a total of 11,909 debt collection-related complaints (including repeated complaints) were received by the FSS from 2020 to June of this year, averaging 19.1 complaints per day. Debt collection complaints showed a declining trend since the first half of 2020 but increased by 11.1% in the first half of this year compared to the previous period.

The FSS attributes this increase in debt collection complaints to the rising interest rates and economic downturn, which have made it difficult for vulnerable groups to repay debts, leading to an increase in leniency-related complaints. Accordingly, the FSS has prepared proactive administrative measures for debt collection complaints concerning vulnerable groups.

These measures include ▲prompt handling of leniency-related livelihood complaints such as debt collection itself for vulnerable groups ▲guidance on the 'Debtor Representative and Litigation Lawyer Support System' upon complaint receipt to protect economically vulnerable groups from illegal private loans and unlawful debt collection practices ▲eradication of excessive debt collection practices and a zero-tolerance policy toward illegal debt collection activities upon detection.

First, livelihood-related complaints from vulnerable groups will be distinguished from general complaints as community-based complaints and processed swiftly through a fast track. Vulnerable groups include persons with disabilities, basic livelihood security recipients, the very elderly (80 years and older), child-headed households, and North Korean defectors. Livelihood-related complaints include urgent medical expenses, seizure of basic livelihood funds accounts, and difficulties in maintaining livelihoods due to excessive debt collection. The FSS plans to operate this system mainly in small and low-income sectors such as credit information services, credit card companies, mutual finance, and savings banks, where leniency-related complaints requesting restraint on excessive debt collection are particularly frequent. This system will be operated only for complaints received at the FSS headquarters (Rapid Complaint Handling Center), with plans to consider expansion to regional offices later.

The FSS will immediately determine whether a complaint qualifies for the fast track upon receipt and promptly consult with financial companies regarding possible support and support methods, then notify the complainant. Complaints from general financial consumers who do not submit proof of vulnerability will be processed according to standard procedures to avoid encouraging moral hazard among debtors.

Additionally, for complaints about illegal debt collection damages from illegal private lenders and registered loan companies, as well as damages exceeding the legal maximum interest rate, the FSS will immediately inform victims of the 'Debtor Representative and Litigation Lawyer Support System' operated jointly by the FSS and the Korea Legal Aid Corporation upon complaint receipt, aiming to minimize damages occurring during the complaint processing period. Furthermore, to eradicate excessive debt collection practices, the FSS will respond with a zero-tolerance policy toward such activities.

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