FSS Launches Comprehensive Inspection of Loan Companies and Debt Collectors to Eradicate Illegal Debt Collection

Comprehensive Crackdown on Illegal Debt Collection to Be Conducted for Three Months

The Financial Supervisory Service announced on the 19th that it will conduct a comprehensive on-site inspection of loan companies, debt collection agencies, and loan brokerage websites for approximately three months starting from the 25th.

The FSS explained that this inspection is being carried out in line with the new administration's strong stance on strengthening debtor protection and eradicating illegal private lending.

The FSS emphasized that it will closely examine whether illegal debt collection or other unlawful business practices that harm people's livelihoods are being conducted by loan companies and debt collection agencies, which are at the forefront of actual collection activities. The agency stated that it will adopt a zero-tolerance policy and take strict action against any illegal activities detected.

Additionally, the FSS added that, following the revision of the Lending Business Act, it will thoroughly inspect loan brokerage websites-whose registration authority has been transferred from local governments to the Financial Services Commission-for risks such as personal information leaks and potential links to illegal private lending, in order to block vulnerable groups from being exposed to illegal financial services.

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