Combating Lenders' Avarice

The Financial Supervisory Service will set up complaint centers to encourage victims of exorbitantly high-interest loans and unfair debt-collection practices to make reports. The centers are scheduled to open Monday.

The financial watchdog said Friday it will establish the main center in Seoul and locate offices at each of its branches in Pusan, Taegu, Kwangju and Taejon. The centers will take reports from people who have taking out loans with extremely high interest rates or have been victimized by creditors who use violence or threats to collect loans. The financial regulator will distribute the reports to the police, prosecutors and Fair Trade Commission. The government will take steps to stop the practices, and lenders responsible for illegal or unfair acts in making loans will be investigated.