In the future, banks that received household loans will not be able to subscribe to other products such as funds or bancassurance for one month before and after the loan.
According to the financial sector on the 28th, commercial banks issued different loan guidelines, including these details, to the front line along with the enforcement of the Financial Consumer Protection Act (hereinafter referred to as the Financial Protection Act) on the 25th.
Among these guidelines, the most notable is the change in the inspection criteria for’constrained sales behavior’. The binding selling act refers to selling other financial products such as investment products such as funds and ELS (stock price-linked securities) or security products such as bancassurance (bank sales insurance) while the bank makes a loan.
In order to prevent the so-called “breaking” practice of financial institutions that recommends purchasing funds and insurance products using loans as a pretext, the gold law expanded the subject of inspection of binding sales activities of investment and guarantee products to “all debtors”.
In the case of Bank A, through the bylaws, the subject of inspection has been limited to those with low credit ratings (under 7th grade). Borrowers with such low credit ratings were in fact difficult to obtain loans themselves, so household loans were rarely subject to the restriction on binding sales.
However, as all borrowers are now subject to inspection, the act of selling investment and guarantee products such as funds and bancassurance for one month before and after the loan execution date has been virtually banned. It means that a person who is going to or received a loan from a bank cannot sign up for a fund for one month before or after.
Therefore, in the future, front-line counter employees must ask consumers “Do you have any loan plans within the next month?” before selling funds. This is because if you are subscribed to the fund and want to receive loans from the bank within one month, you have to cancel the fund.
The’right to withdraw from the loan contract’ has also changed significantly.
In the case of Bank A, under the existing guidelines, household loan products that can withdraw a loan contract within 14 days were limited to’under 40 million won in credit loans and under 200 million won in collateral loans’. The maximum number of times to exercise the right to withdraw was’twice a year’.
However, according to the new guidelines announced under the law, the limit on the amount and number of loans that can be withdrawn from a loan contract is completely removed. Therefore, a consumer who received a credit loan at an annual interest rate of 2.9% at Bank A hears from coworkers and acquaintances that “Bank B can loan at 2.5%”, and within two weeks there is no intermediary repayment fee. The agreement can be terminated. Of course, even in this case, you have to pay interest for the duration of the loan.
In the course of loan consultation, consumers must also write out a’conformity/appropriate customer information confirmation’.
It means that prior to the loan, the bank must receive basic information such as the condition of the borrower’s assets and liabilities, fixed expenditure, the purpose of signing the loan contract, and the principal and interest repayment plan before the loan can be reviewed.
Basically, the bank calculates the loan status or limit based on the consumer’s employment certificate, proof of income, credit rating, etc., but in addition to this, it secures more information on economic conditions such as assets, liabilities, and expenditures and loan repayment plans. Based on this, an appropriate loan size, etc., is recommended. However, this confirmation of conformity and adequacy customer information is only used as basic data, and the consumer is not obligated to prove it.
In the case of corporate loans, only’specific root collateral’ becomes possible when a security right is set for all collateral.
For example, if a company received two separate mortgage loans from a bank, until now, most loans were made using the’limited-term collateral’ method, so even if repayment of only one loan became difficult, the bank had bound the two loans to exercise the mortgage right. .
However, with only’specified root collateral’, not’limited root collateral’, banks can only exercise their collateral for as long as they are pledged. As the scope of banks’ security rights exercise has narrowed, the protection of lenders’ property rights, etc., is strengthened.