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KNCCO's release on the status of the financial and insurance consultations |
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Room 701, Seoul YWCA, 1-1, Myeongdong 1(il)-ga, Jung-gu, Seoul,
TEL +82-02-774-4050, FAX +82-02-774-4090
| Effecitive Date |
: July 14, 2011 |
| Dept. in Charge |
: Team leader Jo June-ha |
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: Assistant Administrator
Ryu Soo-yang |
| Tel |
: +82-02-770-4050 |
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KNCCO's release on the status of the financial and insurance consultations |
According to the analysis on the financial and insurance damage cases received by the 10 consumer organizations nationwide through 194 consumer consultation centers of the Korean National Council of Consumer Organizations (KNCCO) (President Kim Jae-ok), 5,614 cases of complaints were received during the first half of 2011.
5,614 cases relevant to financial damages rose 1.6 times more than those in 2010. The cases of insurance and cards accounted for the most by type
Financial consultation cases during the first half of 2011 were 5,614 cases, which was up 1.6 times from the 3,425 cases that were received in the first half of 2010. By item, consultation cases of insurance (1,918 cases), cards (1,626 cases), other financial products (1,072 cases), loans (684 cases), and investments (208 cases) were received in that exact order.
Damage consultation cases on insurance money payment delay and rejection were 1 out of 3 in terms of insurance-relevant consultation cases
As for insurance-related consultation, there were 643 cases on insurance money payment delay and rejection from among the total of 1,918 cases, implying that one out of three insurance damage consultation cases was about insurance payment damage.
Especially, many cases on delaying or rejecting the payment of insurance money were received, in view of 122 and 114 cases of insurance money payment damages in May and June, respectively. Although, it has been the mandate for an insurance company to pay insurance money within 30 days from the claiming date of it from April 1, 2001, the system has yet to be sufficiently established.
Consultation cases on credit cards rose two times more, compared to 2010
There were 1,547 credit card consultation cases from among the card consultation cases and they accounted for 95.1% of the cases. This was two times more cases received in comparison to the 719 cases received in the same period of last year. In this regard, the cases showed a steady uptrend. Regarding credit card-related reasons, 381 cases of the illegal use of credit cards, 164 cases of rejection of settlement of sales via credit cards, 162 cases of subscription withdrawal, and 143 cases of commissions were received in that exact order.
The reasons why credit card-related consumer consultation cases were steadily rising were that various marketing activities were consolidated, including discounted products and mileage point accumulation from card companies and that settlement via credit cards in the taxes and dues service sector, like local taxes and electricity fees, were expanded. Consequently, the credit card use of consumers increased.
Consultation cases on damages from private loan companies accounted for the most among loan damage consultations
The number of loan-related consultation cases (684), which accounted for 18.5% of the total financial consultation cases, rose two time more than the same period of 2010 (396 cases). The most loan damage consultation cases (private loan companies), 365 cases, were received during January and December 2010, and 256 cases during January and June 2011.
The reason is that the consumers, who could not receive loans from the primary and secondary financial sectors, or who had difficulties in repaying loans, due to the recent economic downturn, used private loan companies a lot, and thus the relevant number of consultation cases rose.
Thorough checking is required upon subscription to cards or applying for loans to reduce damages
KNCCO released the following cautions in relation to consumer damages that are relevant to finance and insurance:
△ Do not depend on the personnel or sales consultant of the financial and insurance companies in the case of contracting, and thoroughly read the terms and conditions, contract, and advertising leaflets.
△ In the event of signing a special agreement with the personnel or sales consultants of the financial and insurance companies, in addition to the terms and conditions, make sure to include a special agreement in the contract.
△ Preserve the terms and conditions, contract, and advertising leaflets so as to be able to deal with a dispute that may occur in the future.
△ Frequently check whether there is some change in the terms and conditions or special agreement, and check the details before consenting to changing them.
KNCCO to conduct continuous monitoring
KNCCO plans to continuously conduct monitoring on the consumer consultation cases and transaction status related to finance and issuance. KNCCO is also scheduled to constantly consult with the management and supervisory authorities regarding the disclosure system for consumers, the terms and conditions of transactions, advertising regulations, interest rates, and commissions.
< Group Members >
Consumers Korea, Korea Federation of Housewives Clubs, National Council of Homemakers' Classes, Korea Women's Association, Korea Consumer Affairs Institute, Korea Consumers Education Center, Consumers Union of Korea, YMCA Korea, National YWCA of Korea, Green Consumers Network in Korea
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