Banks will no longer be allowed to suspend services without notifying customers individually unless there is an unavoidable reason such as a natural disaster. Requiring customers to visit a branch to cancel deposits opened via mobile banking is also expected to be banned.
According to the financial sector on the 24th, the financial authorities recently began work to revise bank terms and conditions. This follows the Fair Trade Commission's request to the Financial Services Commission (FSC) on the 29th to correct 60 terms (17 types) after reviewing bank and savings bank terms. It usually takes three months from the Fair Trade Commission's corrective action to the banking sector's revision of terms, but the financial authorities plan to complete the revisions quickly.
A representative example of the unfair terms cited by the Fair Trade Commission is allowing banks to suspend services for reasons customers cannot anticipate, such as "in other cases deemed necessary." Broad concepts that let banks arbitrarily suspend services, like "in other cases deemed necessary," will be deleted from the terms.
There were also unfair terms under which customers suffered losses because, when the terms of preferential services for deposits changed, related information was posted only at bank branches and on websites, leaving customers unaware. The financial authorities are reviewing ways to notify customers individually when services change, such as via text message or Alimtalk.
Clauses that disclaim all liability regardless of whether the bank acted intentionally or negligently will also be revised. In certain bank terms, some services included as exemptions cases of "processing delays or inability due to system failures arising from other unavoidable circumstances." This clause is expected to be improved so that the bank bears no liability only when there is no intent or negligence.
Some product terms that require customers to visit a branch to cancel deposit products opened through internet or mobile banking will also be revised. The Fair Trade Commission noted regarding this term, "Imposing unduly strict forms or requirements on the expression of a customer's intent can deprive the customer of the opportunity to express that intent."
The financial authorities plan to prepare a draft revision of bank terms and conditions reflecting these changes and recommend that each bank amend its terms.