SEOUL, Jun. 18 (Korea Bizwire) — Starting as early as the latter half of the year, consumers who have taken out bank loans will be able to request information from banks as to how their interest rates are being calculated.
In addition, a detailed breakdown of interest rates for each bank to be publicly announced through the Korea Federation of Banks will further help consumers choose the right bank for their loans.
The new measures were detailed in an announcement by bank regulatory officials yesterday.
According to the Financial Supervisory Service, the measures come after inspections showed banks were often inaccurate in their interest rates calculations.
“Various new measures will be implemented so that low-income families and small businesses will not fall victim to current banking practices,” said one official from the Financial Supervisory Service.
The changes will give consumers access to information about how banks determine final interest rates.
Based on the information, consumers will have more control over which banks to visit for a loan, giving them more power to hold in check as they negotiate with financial institutions.
H. S. Seo (email@example.com)