"If You Lose Your Credit Card Abroad, You May Be Responsible for Part of the Loss"

Disclosure of Financial Supervisory Service Complaints and Dispute Cases
When There Is Negligence in Card Storage
Be Aware of Partial Liability for Unauthorized Card Use Amounts

On the 17th, the Financial Supervisory Service (FSS) announced that if there is negligence in card custody, the subscriber may be responsible for part of the damage amount.

On the same day, the FSS released the "Major Complaints, Dispute Cases, and Dispute Resolution Standards." The FSS selected 10 complaint and dispute cases and 2 dispute resolution standards for the second quarter of this year and posted them on its website.

The FSS explained that if there is negligence in credit card custody, the subscriber may have to bear the amount of unauthorized card use. According to the FSS, a complaint was recently received claiming that it was unfair for the subscriber to bear part of the damage amount caused by unauthorized use after losing a credit card in a hotel room overseas.

As a result of the investigation, it was confirmed that the complainant did not store the credit card in a safe with a lock inside the hotel room but left the card on the bedside table and went out. According to the "Standard Terms and Conditions for Individual Credit Card Members," members are responsible for using and managing the card with the care of a good manager. Accordingly, the FSS guided that it is not unreasonable to require the subscriber to bear part of the damage amount in cases where there is negligence in card custody.

The FSS urged caution that in cases of negligence in card custody, unsigned backs of cards, or delayed theft reports, the member may be responsible for part of the amount of unauthorized card use.

In addition, the FSS advised confirming the payment limits of legal expense insurance when incurring attorney fees, and emphasized that in relation to accident insurance, if employment occurs before graduating from high school, the change of occupation must be notified to the insurance company. Regarding savings-type insurance, the FSS cautioned to be aware that maturity refunds may change according to fluctuations in the announced interest rate.

Regarding dispute resolution standards related to insurance, the FSS explained that the age-restricted special clause in automobile insurance is based on the actual age, accidents caused by drivers under a certain age are not compensated, and while the family-restricted special clause includes parents, spouses, and children, siblings are not included, making compensation difficult in case of an accident.

Furthermore, if the insured fails to disclose past medical history, the insurance company may cancel the contract within one month from the date it becomes aware of this. If there are multiple violations of the duty of disclosure, the insurance company must specify what those are so that the policyholder can understand and ensure the right to defense. The "date of awareness of the violation" should be calculated separately for each medical history, and the FSS stated that claims for contract cancellation after one month from the "date of awareness of the violation" are unreasonable.

Financial Supervisory Service, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

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