[ad_1]
Approved the cabinet meeting of amendments to the commercial loan law
Invalid if you borrow without a contract
<대한금융신문=유정무 기자> The interest that illegal private finance companies can receive is limited to 6% per year.
The Financial Services Commission announced on the 29th that a bill to reform the law on the protection of financial users and the registry of loans, etc., was resolved in the Council of State, with such content as the main point.
The aim is to strengthen the institutional base for the eradication of illegal private financing and relief to victims as a follow-up to the measures to eradicate illegal private financing announced jointly with related organizations in June.
The economic incentives for illegal businesses continued as illegal private finance companies received unfair profits in the form of high interest rates, long-term capture, and illegal contracts.
Consequently, the Financial Services Commission allowed to invalidate and return interest paid in excess of 6% (legal commercial interest rate) to illegal private finance companies. Even if an illegal contractor increased the interest due and relocated you, or made a loan without a contract, it was also invalidated.
Additionally, the Financial Services Commission changed the name of an illegal business operator running an unregistered loan business (brokerage) from an unregistered loan business (brokers) to an illegal private finance business (brokers).
This is because, in the case of unregistered lenders, there is a limit that the name does not reflect reality even though it inflicts enormous damage, such as illegal high-value gold loans and debt collections on the vulnerable.
Penalties for illegal private financing are also reinforced.
In the case of advertisements posing as government support and loans to financial institutions such as Sunshine Loan, they are subject to imprisonment of up to three years or a fine of up to 50 million won. Penalties for undocumented operations and violations of the highest interest rate are also reinforced with prison terms of up to 5 years, fines of up to 100 million won, imprisonment of up to 3 years, or fines of up to 50 million won, respectively.
In addition, the Financial Services Commission is trying to strengthen user protection in the loan business.
The obligation of the lender to return the contract was re-established at the request of the debtor after the obligation of the collection company to retain documents related to the contract and payment was completed. In case of breach of storage and return duty, a fine of no more than 10 million won is imposed.
An official from the Financial Services Commission said: “We are going to discuss closely with the National Assembly so that the bill that has been approved by the Council of State can be resolved and approved by the National Assembly as soon as possible.” I will also respond proactively. “
Copyright holder © Korea Financial Newspaper Unauthorized reproduction and redistribution prohibited
