It’s just before the enforcement of the prohibition law… Card companies’ illegal business still prevails

Ahead of the enforcement of the Financial Consumer Protection Act (Money Soo Act), where the consumer protection system is strengthened, illegal business of credit card companies is still prevalent.

According to the industry on the 19th, the Financial Supervisory Service imposed a penalty on a total of 102 credit card recruiters from four card companies, including Shinhan, Kookmin, Samsung, and Hyundai this month.

By credit card company, it was found that illegal business occurred mainly at large companies with ▲ Samsung Card 39 ▲ Shinhan Card 31 ▲ Hyundai Card 17 ▲ Kookmin Card 15.

Considering that the penalty is at least 400,000 won and up to 1.2 million won, it seems that Samsung Card and Shinhan Card, which have the largest number of sanctioned employees, have been levied up to tens of millions of won.

They are the most illegal of recruiting members on condition of providing cash in excess of 10% of the annual credit card fee. They gave up to 310,000 won in cash, and 250,000 won by mixing cash and gift certificates.

There have also been many cases of recruiting members from competitors or entrusting membership recruitment to others. In exchange for attracting members or recruiting members on the street, fees have been paid to others.

According to the Specialized Credit Finance Business Act, recruiters are required to recruit for a person other than the credit card company to which they belong, to recruit members to others, to recruit members on the street, or to recruit on conditions that provide economic benefits in excess of 10/100 of the annual annual fee Prohibit.

As credit card companies’ soliciting behavior unfolds without a break at the time when the enforcement of the prohibition law is on the 25th, concerns about confusion among consumers are growing.

The biggest problem is that the financial authorities, as well as the Credit Finance Association and credit card companies, are cracking down on illegal activities every year and conducting their own education, but they are not being rooted.

In December of last year, 235 recruits were caught while doing illegal business to attract card members. At the time, all six card companies except Hyundai Card were sanctioned.

An industry insider said, “As non-face-to-face card payments increase, competition among card recruiters becomes fiercer and it is increasingly difficult to attract members, so illegal business is widespread.” He said.

Currently, credit card companies are busy working to prepare consumer protection measures in preparation for the enforcement of the law.

Shinhan Card decided to establish an integrated management system that divided into four stages of collection, analysis, utilization, and management by utilizing 50,000’voices of customers’ per year as digital-based management resources.

To this end, it plans to collect and discover consumer opinions in real time by adding idea contests, customer panel suggestions, and building a lounge exclusively for elderly customers in addition to several existing channels such as satisfaction surveys, simple surveys, and internal and external civil complaints analysis.

Through reorganization this year, Samsung Card upgraded the consumer protection part in the CS team to the consumer protection team and expanded the number of personnel in charge. Hyundai Card is also developing a computer system related to the registration of loan recruiters and reinforcement of customer information in accordance with the law of law.

Nonghyup Card provided video training for 2,000 employees at its branch offices in preparation for the enforcement of the law. This is to ensure that employees can take the lead in protecting the rights and interests of customers by familiarizing themselves with the general contents of the prohibition law. Kookmin Card also recently held a briefing session on the main contents of the law to the executives and working-level employees.