Lenders Get Disclosure Rules
To check usury and illegal debt-collection practices, private lenders must disclose annual interest rates and all extra expenses on their advertisements beginning June 1, the Fair Trade Commission said Wednesday. Violators of the regulation will face up to 100 million won ($76,450) in fines, the regulatory commission said.The noninstitutional lenders' typical practice of handing out flyers with lures like "low interest" or "fast loan" will also be illegal.
"After setting the new rules, we will investigate whether the private lenders abide by them," a commission official said. "Lenders that advertise confusing rates to attract low income families will be fined the maximum, 100 million won."
with the Korea JoongAng Daily
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