Credit card changes aim to protect consumers
Starting next year, consumers will have to show identification when making purchases of more than 500,000 won ($448) using a credit card.
Additionally, when a customer cancels a credit card or requests deletion of personal information, the credit card issuer will have to disclose the credit card points remaining and ask how the customer plans to spend them.
Under current law, no identification is required for purchases over 500,000 won. Additionally, when canceling a credit card, leftover credit card points are kept for a specified period of time determined by the issuer.
When that period passes, the points automatically disappear. And when individuals choose to erase their information, the leftover card points are wiped out as well.
The Credit Finance Association and credit card issuers announced Monday the changes will go into effect starting Dec. 30. This will apply to both credit card companies and banks.
The changes are to protect consumers who lose their cards or have them stolen.
However, the changes will not apply to debit cards.
Other changes will give credit card companies the right to refuse to reissue cards to people who fail to meet their requirements. And when renewing a credit card, the company has to inform clients of their credit level, as well as details of their card spending.
BY LEE HO-JEONG [firstname.lastname@example.org]