Insufficient information provision by credit card companies causes consumer detriment

 It was found that consumer damages are mainly attributable to credit card companies’ failure to clearly provide major information such as annual fee, interest rate (fee), payment conditions and restrictions when purchasing products in points, etc. Meanwhile, credit card payment methods get diversified every day including lump sum payment, paying in installments, revolving payment service, etc.  

 The KCA recently conducted an analysis on 702 consumer damage cases related to credit cards reported to the Agency from 2009 to 2012. According to the analysis, ‘insufficient provision of major information including annual fee and payment conditions and restrictions when purchasing in points’ was the most frequently blamed with 31.9% (224 cases), followed by ‘cancellation and refutation handling’, ‘compensation for credit card loss and theft’, ‘billing’, and ‘card information leakage’ at 20.5% (144), 14.7% (103), 13.8% (97), and 2.4%(17), respectively.

 Based on these findings, the Agency is going to advise relevant departments to revise the  Specialized Credit Financial Business Act for better notification of major information and also amend a standard form for credit card bill to clearly provide major information on annual fee, interest on installment transaction and revolving service, and conditions of how to earn points for credit card users via their credit card bills.