To Extend the Period Guaranteeing Indemnification for Damage from Lost Credit Cards to 60 Days Before Filing Report of Loss

The period during which damage can be indemnified when one loses a credit card and someone else used the card will be extended to `60 days before the day of report`. So far they indemnified the damage from 25 days before the report.`

The Financial Supervisory Service announced on the 20th that it prepared a measure for improving credit card contracts to secure the rights of credit card users, collaborating with the Credit Financial Service, credit card companies, and consumer bodies.

According to the reform measure, the user who reports the loss of the card during the indemnifying period is not responsible for the damage from loss of the card except when no signature is on the back of the card, or when the key number is exposed and the card is lent.

The stolen or lost card can be reported by phone, and when the report is delayed, only the damage during the delayed period is excluded from the indemnification.

Along with this, purchasing refrigerator, laundry machine, records or video cassettes with a card can be cancelled if the products are not used yet, which was not the case until now.

In addition, the registration on the black list should be notified to the bad debtor `15 to 45 days` before the registration, allowing some latitude, compared to the previous regulation period of `within 15 days before or after the registration`.

FSS said, "The cases for which users are responsible were regulated en masse, causing constant conflicts with consumers by the companies` self-advantageous interpretation of the regulations. Contracts, which were favorable to the card companies, were improved to meet the consumer security."

Byong-Ki Lee eye@donga.com