FSS, 6month 8day on-site inspections of moneylenders and brokerage sites for 3months
The Financial Supervisory Service will 6month 8begin comprehensive on-site inspections of moneylenders and online loan brokerage sites from the day for approximately 3months. It will focus on practices targeting ordinary people and vulnerable groups, including illegal debt collection, violations of the maximum interest rate, and links to illegal private lending.
The Financial Supervisory Service will 6month 8begin comprehensive on-site inspections of moneylenders and online loan brokerage sites from the day for approximately 3months. The inspection start date and duration are based on information announced by the Financial Supervisory Service. The purpose of the inspections is to eliminate predatory financial practices targeting ordinary people and vulnerable groups.
The FSS cited the shift to an increase in the number of people using moneylenders after 5years as the background to the inspections. It said concerns had grown that illegal practices could occur among the expanded user base. Accordingly, it will strengthen on-site verification procedures.
The inspections cover registered moneylenders and online loan brokerage sites. Types of illegal debt collection include zombie-debt collection and social-stigma collection. The inspections will also examine violations of the maximum interest rate and deceptive loan practices that reduce the principal while increasing interest.
It will also focus on identifying cases involving bait loans disguised as repayment-ability assessments and links to illegal private lending. The scope of inspections has been expanded from previously covering only registered moneylenders. During the inspections, relevant documents and loan procedures will be reviewed directly.
This inspection will be conducted in cooperation with the Gyeonggi Provincial Special Judicial Police. Coordination with local judicial police has increased the possibility of linking the detection of illegal activities with investigations. The Financial Supervisory Service said it would take the necessary measures if violations are uncovered.
The Financial Supervisory Service will take follow-up measures based on the inspection results and violations identified. Depending on the type of violation, entities may be subject to administrative fines or administrative sanctions. If consumer complaints or reports of illegal activities are received during the inspection period, on-site verification will be prioritized.
Sources: 연합인포맥스
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