Credit card refund will be automatic

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Credit card refund will be automatic

Credit card users who cancel card membership will automatically receive refunds of the remaining membership fee without having to report the matter to card companies starting March 1, the Financial Supervisory Service said yesterday.

The measure comes after the financial watchdog revised related terms and conditions for credit card service in coordination with the Credit Finance Association on Feb. 1 in a bid to enhance convenience for customers.

Currently, card companies refund remaining credit card membership fees to customers only when formally requested to do so.

“If a customer terminates a card with a 30,000 won ($27.68) annual membership fee after using it for six months, a card company must refund 15,000 won,” said an FSS official.

Under the revision, the FSS has requires card companies include in terms and conditions that customers have the right can choose to temporarily suspend or completely terminate a card by mail, telephone or online.

To curb impulse spending and prevent people from delinquencies, the financial watchdog also said card companies will be prohibited from soliciting customers to increase their credit limits.

Finally, card companies will be able to offer card loans only to customers who have given their contractual consent.

Currently, card companies can provide loans to customers without their written consent.

By Kim Mi-ju []

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