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Photo = Fair Trade Commission |
[Alpha Biz= Reporter Kim Sangjin] Unfair contract terms used by credit card companies, allowing them to arbitrarily terminate additional services like airport lounges and car rentals, have been extensively identified.
On the 25th, the Korea Fair Trade Commission (FTC) announced that it reviewed 1,215 terms and conditions used by credit card companies, leasing, and installment financing firms, uncovering 45 unfair clauses across seven categories. The FTC has requested the Financial Services Commission (FSC) to rectify the problematic terms.
The most frequently identified unfair clauses allowed businesses to arbitrarily change or discontinue services. Terms citing vague reasons like "circumstances of the partnering company or card issuer" were flagged for potentially causing sudden harm to customers. For example, additional services like access to airport lounges, car rentals, or premium smartphone services must typically be provided for at least three years before any changes can be made. However, some terms reduced this period to just one year, which was deemed problematic.
Unfair provisions were also found in clauses related to the “loss of benefit of time,” where creditors could demand early repayment if they judged that debtors might default. Some terms allowed creditors to treat temporary measures, such as provisional seizure or injunctions, as grounds for invoking the loss of benefit of time. Clauses permitting creditors to forgo prior notice when such conditions arose were also criticized.
Other unfair terms included provisions that restricted customers from raising objections or limited objections to written submissions only.
An FTC official stated, “We plan to promptly address unfair terms in the financial investment sector as well.”
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
