The Financial Services Commission said on the 25th that the "interest rate reduction request service," which allows MyData providers to automatically exercise the right to request an interest rate cut on behalf of consumers, will take effect on the 26th. The right to request an interest rate cut allows consumers to ask banks and other financial companies to lower interest rates when their credit status, such as credit rating, improves, and is a system implemented based on the Banking Act and other laws.
So far, the Financial Services Commission (FSC) has continued institutional efforts to ensure the interest rate reduction request system can meaningfully protect consumer rights, including proactively notifying borrowers with potential for rate cuts of their right to request an interest rate cut at least once every half-year and regularly disclosing financial companies' acceptance rates on a semiannual basis. Still, there have been criticisms that many consumers are unable to use the right because they do not know about its existence or how to apply due to work and other obligations.
Going forward, once a consumer gives one-time initial consent to use an artificial intelligence (AI) agent, a MyData provider will be able to automatically submit an interest rate reduction request. Consumers who wish to use the interest rate reduction request service can choose one of the 13 MyData providers participating at this launch, sign up, complete asset consolidation, select their loan accounts, and consent to the interest rate reduction request service. With consumer consent, a MyData provider may submit the right to request an interest rate cut regularly up to once a month, and may apply as needed when there are clear reasons such as a substantial increase in income or an upgrade in credit score.
The MyData providers participating this time are 13 companies including Viva Republica, Naver Pay, Kakao Pay, Finda, Banksalad, NICE Credit Information Service, Industrial Bank of Korea, Shinhan Bank, Woori Bank, NH Nonghyup Bank, KB Kookmin Bank, Lotte Card, and Samsung Card. Automatic applications for interest rate reduction requests are currently possible for a total of 57 financial companies.
The Financial Services Commission (FSC) expects that, if the service becomes active, individuals and sole proprietors will be able to save up to 168 billion won in interest per year.