On the 25th, the Financial Consumer Protection Act (hereinafter referred to as the Financial Protection Act) will be enforced. On March 5 of last year, the law passed the plenary session of the National Assembly about eight years after the bill was first proposed.
The Financial Services Commission explained that last year, 11 bills, including the government bill, were discussed in depth and reached an agreement on the prohibition against law.
These are the five enacted bills (Seon-suk Park, Yong-jin Park, Jong-geol Lee, Woon-Yul Choi, and government drafts) and six individual financial business law amendments (financial consumer discrimination prohibition provisions, Congressman Min Byeong-du bill).
Compared to the government proposal, the difference is △reduction of the subject to convert the liability for proof of damage compensation △introduction of the principle of prohibiting the combined management of financial product advisory companies.
According to the Financial Services Commission, the financial consumer’s options are expanded with the gold law.
If the consumer withdraws the financial product contract within a certain period due to the subscription withdrawal right, the seller will return the money and goods that have already been received. In addition, the right to terminate illegal contracts allows consumers to request termination of the contract within up to 5 years if the financial company violates the sales principle.
It also has the purpose of preventing the incapacitation of the dispute settlement system through filing a complaint by financial companies. The Financial Services Commission explained that in the case of small disputes filed by consumers under the Gold Law, the filing of a financial company is prohibited until the dispute settlement is completed, and the court may stop the litigation if the case for which the dispute settlement is filed is in progress. .
In addition, the burden on consumers for financial dispute settlement litigation is reduced. If a consumer requests a financial company to read related data for the purpose of dispute settlement or litigation, it is obligated to accept it, and in case of a lawsuit for claiming damages due to a violation of the duty of explanation, it can be transferred to the financial company to prove intentional and negligent.
Ahead of the enforcement of the law, major financial companies are in full swing. We check financial products during sale and strengthen employee training. It is known that some are considering recording conversations in the sales process between employees and customers.
Some people are approaching the enforcement of the prohibition against law, but some point out that the detailed rules are poor compared to the vast scope. There are also complaints that there is not enough time to adjust to the business environment that is changed by the law of law.
In response, the financial authorities have repeatedly emphasized that they will ensure that there is no difficulty in applying the gold law in the financial field. In addition, the gold law is expected to become an important turning point in terms of not only enhancing consumer rights and interests, but also enhancing public confidence in financial companies.