FSS launches on-site inspections of private lenders and brokerage sites to eradicate predatory finance
The Financial Supervisory Service has launched on-site inspections of private lenders and online loan brokerage sites to prevent predatory financial practices targeting ordinary people and vulnerable groups. The FSS said it 8entered into cooperation with major financial holding companies to foster consumer protection experts.
The Financial Supervisory Service has launched on-site inspections of private lenders and online loan brokerage sites to eradicate predatory financial practices targeting ordinary people and vulnerable groups. The FSS said it would use the inspections to examine illegal business practices and whether consumer protection requirements were violated. The FSS stressed that it would take strict action against violations under the principle of making an example of offenders.
The FSS plans to examine advertising, contract and debt collection practices, among other matters, as part of the inspections. Inspection teams will visit sites to review relevant documents and business processes. The inspection results may lead to sanctions or corrective orders if violations are found.
The FSS agreed in 6 month 5 day 8to cooperate with major financial holding companies to foster financial consumer protection experts. The two sides agreed to cooperate on expert training and strengthening capabilities in the field. They said the training participants and operating methods would be finalized through further discussions.
The Financial Supervisory Service said it would focus its inspections on illegal practices related to loan brokerage through online platforms. It will verify the division of roles between platform operators and brokers, as well as whether they are fulfilling their responsibilities. If necessary, it also plans to issue policy recommendations to platform operators.
The Financial Supervisory Service said it would strengthen the financial consumer protection system by conducting inspections and education simultaneously. In particular, it said it could continue expanding the scope of inspections with the goal of protecting vulnerable groups. The Financial Supervisory Service said it would disclose the inspection results and the schedule for follow-up measures in sequence.