(1)On March 30, 2021, the State Council passed the amendment of the Enforcement Decree of the Loan Business Act and Interest Restriction Act
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(2)From July 7th
(3)statutory maximum interest rate cut to 20
(4)Lower the burden of high interest rates on ordinary people
(5)Warm finance by your side
(6)Financial Services Commission
(7)Financial Supervisory Service
A few years ago, the legal maximum interest rate decreased from 24 to 20. In short, the absolute interest rate wherever you borrow money can’t exceed 20
At first glance, I think it’s good for ordinary people. Because the demand for borrowing money usually occurs to low-income people
Ironically, however, other side effects are starting to appear
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(1)Exclusive Rush & Cash begins withdrawal of loan business next month completed in June 2024
(2)All goodwill rights, including 13 trillion won in loans, are planned to be transferred to OK Savings Bank. The authorities have begun to materialize the review of the transfer of the capital. Early liquidation of the loan business is considered for the acquisition of other financial institutions
(3)Registration 2022-12-21 AM 60000 Revised 2022-12-21 AM 60000
(4)E-Daily reporter Seo Dae-woong and Yoo Eun-sil, No. 1 in the loan industry, Rush & Cash, will begin withdrawing from the loan business next month. The plan is to gradually reduce the entire business, including 1.35 trillion won worth of loan assets, and completely exit the loan market in June 2024 The financial authorities have begun to revise the law to this end
(5)Reporter Seo Dae-woong
httpsmyonhapnewstvcokrnewsMYH20230629015100641
South Korea’s No. 1 lender declares withdrawal from South Korea just won’t do loan business
Originally, it was supposed to be completely withdrawn in June 24, but it was changed to completely withdraw this year
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(1)Home> Economy/Finance > Second Finance
(2)Rush & Cash, the No. 1 lender, withdraws from Korea at the end of the year
(3)Input 2023-06-06 174032 Correction 20230606190607 Reporter Cho Yoon-jin
(4)OK Savings Bank 6 Months Early Acquisition
(5)Concerns over a contraction in the supply of low-credit loans
(6)Introduction of non-card membership rush and cash
(7)Credit loans, mortgage loans, auto loans
(8)Quick and easy!
(9)Photo courtesy = Capture the screen of the Rush & Cash homepage
httpswwwsedailycomNewsView29QR1A7TL3
The lenders have a maximum interest rate of only 20
To make matters worse, it is difficult for lenders to raise funds due to high interest rates
beginning to be reluctant to lend to low-credit people
The number of users decreased and the delinquency rate increased to 6 -> 73
Financial authorities are also considering boosting loans for the working class due to concerns over a contraction in loan supply, but bank credit card companies are also showing a sour response
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(1)I’m reporter Park Jiwoon
(2)Japanese Rush & Cash, which had remained No. 1 in the lending industry, will disappear from the domestic lending industry after handing over its operations to OK Savings Bank in December
(3)
(4)The liquidation date, which was scheduled for next year, was moved up by half a year, but the business situation deteriorated
(5)Continued high interest rates made it difficult to finance the loan, but profits were reduced due to the legal maximum interest rate of 20
(6)On the other hand, the number of users of the loan business has decreased steadily over the past three years, falling below 1 million last year
(7)Despite the decline in users, the delinquency rate of large lenders was 73, up 13 points from half a year ago
(8)Then, although the financial authorities are considering boosting financing for excellent lenders of low-income finance, it is a problem for banks that have to give out loans
(9)
(10)Financial authorities also asked credit card companies to keep in mind that loans for the working class will not shrink
Even the pawnshop, which was used as a power supply window, was closed in a row due to deteriorating profits
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(1)The alleyway bailout pawnshop disappears
(2)Reporter Lee Kwang-sik ☆
(3)Input 20230319 1822 Amendment 20230327 2022 Paper A3
(4)Seulleong, Jongno 5-ga, Pawnpo Street
(5)I don’t want to be treated like a bad guy
(6)Photo = Reporter Kim Bum-joon
(7)In front of a pawnshop covered with translucent glass in Jongno 5-ga, Seoul, a notice was posted saying that new customers will no longer be accepted There were only about ten earrings and gold rings in the store, but there were no other items Lee 67, who has been running a store here with her husband for nine years, said, “If you lend 5 million won on your own, you can only earn 80,000 won per month,” adding, “Considering that the money is often not recovered, attracting new customers is a loss.”
Eventually, even in the pawnshop of lenders, people who can’t get loans reach for illegal bonds, and the damage to illegal bonds reached a five-year high
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(1)Digital Times
(2)6784 cases of illegal loan damage in the first half of the year are the largest in five years
(3)Reporter Lim Seongwon, soone
(4)Input 2023-09-10 1947
(5)6784 cases of damage counseling and reporting
(6)In order of collection of non-registered loan loan interest rate bonds
(7)In the first half of this year, the number of counseling and reporting on illegal private finance damage reached 6,784, the highest in five years In the midst of the economic downturn, the vulnerable group, who have difficulty in financing the institutional sector, has been driven to a high loan shark with an annual interest rate of thousands
(8)According to the data submitted by the Financial Supervisory Service to the office of Rep. Seo Bum-soo of the People’s Power on the 10th, the number of illegal private financial damages consulted and reported to the Financial Supervisory Service’s illegal private financial damage reporting center in the first half of this year was 6,784
(9)As of the first half of the year, the number of illegal private finance damages reached the highest level this year with △2459 in 2019 △ 3955 in 2020 △ 4926 in 2021 △ 5037 in 2022 On an annual basis, illegal private finance damage is on the rise, with 5468 cases in 2019, 8043 cases in 2020, 9918 cases in 2021, and 10,913 cases last year
httpsmdtcokrcontentshtmlarticle_no=2023091102100963084001
Lowering the legal maximum interest rate may have started in a good sense to reduce the burden on the common people’s loans, but the result will be detrimental to the common people