Relief for consumers who suffered losses from credit card installment payments in the "Tmon·WEMAKEPRICE INC. (T-MEP) incident," which caused large-scale unsettled payment damage, will be completed this month. With the financial authorities setting this month as the deadline for refunds and entering last-minute talks with card companies, relief for installment-payment losses will be wrapped up two years after the incident.
According to the financial authorities on the 12th, domestic standalone card companies recently began refund procedures for T-MEP victims. The Financial Supervisory Service is consulting with card companies to complete refunds this month. The authorities are encouraging applications through card companies so that victims can properly receive refunds.
Card companies guided T-MEP victims through the refund procedure through last week. Those eligible for refunds are transactions that meet the requirements under the Installment Transactions Act for exercising the right to withdraw an offer or the defense of installment payments: payments of at least 200,000 won and installments of at least three months. Supporting documents required for refunds include payment records, travel product information, and materials that can verify non-use of the service.
This refund process follows a decision in April by the Financial Dispute Mediation Committee of the Financial Supervisory Service. During the T-MEP incident, financial consumers who paid for travel and airline ticket products by credit card installments but were unable to use the services filed disputes against card companies, but refunds were not made because responsibility was unclear.
The committee determined that exercising the right to withdraw an offer and the defense of installment payments under the Installment Transactions Act was valid in disputes brought by T-MEP victims against card companies. The right to withdraw an offer allows consumers to void the installment contract itself due to a simple change of mind, and the defense of installment payments allows consumers to refuse to pay the remaining installment balance if they did not properly receive the goods.
Under the committee's decision, a standard was also set that already-paid installment amounts are to be refunded and the obligation to pay remaining installments is extinguished. According to the Financial Supervisory Service, as of the end of last year, disputes that can be resolved through this approach number 11,696 cases, with dispute amounts totaling 13.22 billion won.
However, in addition to installment-payment victims, there are still victims who made lump-sum payments and those pursuing a class action through the Korea Consumer Agency (KCA). An official at the Financial Supervisory Service said, "For other victims, there is nothing the financial authorities can help with. Structural issues can only be resolved through legislation."
Once victim relief ends, card companies and payment gateways (PGs) will contest the allocation of the 13.2 billion won in refunds. Card companies are considering a method of paying the victim amounts requested for refunds starting this month, then claiming them from PGs. PGs argue that card companies also need to bear responsibility arising from the result of extending credit.