Consumers should be allowed to use credit cards to pay for insurance products, Lee Doo-hyung, the new chairman of the Credit Finance Association of Korea, said at his inauguration conference this week.
The Korean insurance and credit card industries reportedly have been in conflict over the past two years regarding whether consumers should be able to use credit cards to buy insurance products. At the base of the conflict is insurance companies’ refusal to pay the fees charged by credit card companies.
“In an environment where credit cards are being actively used, putting restrictions on their use when it comes to insurance is an invasion of consumers’ rights,” Lee said during a presentation.
Lee also said he will work to ensure that personal loans of Korean cardholders be subject to the credit card industry’s Debt Cancellation Debt Suspension system. The service is designed to help debtors who cannot repay debts because of illness or unemployment by granting them exemptions or deferments at financial institutions’ discretion, according to the association.