Starting next week, collection is limited to "seven times in seven days"...Financial Supervisory Service Revises Guidelines

As the Personal Debtor Protection Act takes effect next week, the financial authorities will revise the guidelines for collecting bonds and selling insolvent bonds.

The Financial Supervisory Service has announced in advance the administrative guidance of the "revised guidelines for collecting bonds and selling loans" by the 1st of next month.

As a result, the number of collections that financial companies contact to individual debtors by visiting or calling them is limited to seven times every seven days.

If the debtor himself is unable to repay due to a disaster, a family accident, or illness, the collection can be suspended for up to six months through an agreement.

In addition, financial companies cannot collect loans that have expired or delegate the collection to debt collection companies.

In addition, it is not possible to sell a bond with an extinctive prescription, and it is necessary to check whether the extinctive prescription of the bond has been completed before proceeding with a lawsuit related to the bond.