The amendment to the 'Consumer Finance Support Act' (Law on Supporting Consumer Financial Life), which includes non-financial debts such as student loans, communication bills, and electricity fees as eligible for debt adjustment, passed the National Assembly plenary session on the 27th. This action reflects the limitation of the existing law that restricts the subject of the credit recovery support agreement to financial companies and policy finance institutions, resulting in a low effectiveness of support for individual debtors.
The National Assembly held a plenary session that afternoon to vote on the Consumer Finance Support Act. The voting results showed that out of 283 members present, 245 voted in favor, and 8 abstained, passing the Consumer Finance Support Act. This is a bill amended from the revision proposed by Commissioner Kang Jun-hyun of the Democratic Party, modified as a committee alternative.
The current individual debt adjustment system is divided into public relief led by the court, such as rehabilitation and bankruptcy, and private relief led by the Credit Recovery Committee, such as individual workouts. Among these, the debt adjustment procedure of the Credit Recovery Committee is carried out based on the 'Credit Recovery Support Agreement,' which does not include non-financial debts such as student loans, electricity fees, and communication bills.
The amendment includes ▲ Korea Student Aid Foundation ▲ Electricity sellers ▲ Mobile telecommunications providers (including budget mobile providers) ▲ Communication billing service providers as mandatory subjects for the Credit Recovery Support Agreement.