신용사면 대상자‘Credit amnesty’, which will erase the delinquency history of up to 2.98 million ordinary people and small business owners, will be implemented from the 12th of next month. Those eligible for credit forgiveness will have their credit scores automatically increase.
The Financial Services Commission announced on the 6th that ordinary people and small business owners can check whether they are eligible for credit recovery support through the websites of personal credit rating companies and individual business credit rating companies starting March 12.
If you are eligible for support, your credit score will automatically increase because your delinquency history information will not be reflected in your credit evaluation. Accordingly, it is expected to be of great help to the resurgence of ordinary people and small business owners as it becomes possible to issue credit cards, take out new loans, and change loan conditions to better ones.
Previously, in this year’s business report, the Financial Services Commission announced a credit recovery support plan to help ordinary people and small business owners quickly return to normal economic life when they inevitably default on their debt payments in an abnormal economic situation with high interest rates and high inflation in the aftermath of COVID-19. There is a bar.
To this end, on the 15th of last month, all financial institutions signed an agreement to support credit recovery for ordinary people and small business owners, and decided to restrict the sharing and use of delinquency history information in cases where small delinquents of less than 20 million won have repaid the delinquent amount in full.
This credit recovery is for borrowers who incurred a delinquency of 20 million won or less from September 1, 2021 to January 31 of this year, but repay the full amount by May 31 of this year.
During the target selection period, the number of borrowers with small delinquencies was approximately 2.98 million (based on NICE personal loan borrowers), and the number of borrowers who repaid the delinquent amount in full by the end of last month was approximately 2.59 million. 2.59 million people who have repaid their arrears in full can receive credit recovery support without a separate application.
Approximately 390,000 people who have not yet repaid their delinquent debt in full can receive credit recovery support if they repay the delinquent amount in full by May 31.
In addition to this credit amnesty measure, the Financial Services Commission is also seeking to shorten the registration period for debt restructuring information, which is a disadvantage to borrowers who use debt restructuring.
When ordinary people and small business owners use debt restructuring from the Credit Recovery Committee or New Start Fund, the debt adjustment usage information is registered with the Credit Information Service, acting as a constraint on financial transactions.
Currently, registration of debt adjustment information is deregistered if repayments have been made faithfully for two years according to the debt adjustment plan, but in the future, the system is planned to be improved to deregister debt adjustment information if repayments have been made faithfully for one year.
The shortened registration period will be implemented in March after consultation with the Korea Credit Information Service, Credit Recovery Committee, and New Start Fund.
The Financial Services Commission said, “To ensure smooth implementation of the credit recovery support plan, we plan to continuously check the status of progress with related organizations such as the Credit Information Service and actively support preparations.”
