SEOUL, Jan. 19 (Korea Bizwire) — The government plans to activate the customer’s right to request an interest rate cut from credit card and credit finance firms.
The right to request an interest rate cut represents the borrower’s right to demand that financial companies lower interest rates when their wealth or credit conditions improve.
The Financial Services Commission, South Korea’s top financial regulator, recently issued advance notice for a partial revision of the supervisory regulations on specialized credit financial companies.
Under the revision that will take effect from April 1, the Credit Finance Association should compare and disclose information on how many requests are accepted by each member company within two months of the closing date of every half-year period.
To this end, specialized credit financial companies will be obliged to provide necessary information to the association.
The National Assembly and the government legislated the customer’s right to request an interest rate cut back in June 2019.
Nonetheless, it has been pointed out that it’s difficult for consumers to fully understand the situation since statistics and track records on how much credit card and credit finance companies accepted such requests have not been disclosed.
J. S. Shin (firstname.lastname@example.org)