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Certain Credit Delinquents to Be Allowed Plastic Again

Posted July. 10, 2009 07:35,   


Credit delinquents will be allowed to get credit cards again if they repay their debts punctually for a certain period of time.

The state-run Credit Counseling and Recovery Service said yesterday that it is pushing to issue credit cards to such persons if they keep making debt payments under credit recovery programs.

Those who filed for personal bankruptcy protection but continue to repay debts for more than 24 months without missing a payment can get a credit card with a limit of between 500,000 and 700,000 won (390 to 550 U.S. dollars) a month.

In the country, 820,000 credit defaulters are under personal bankruptcy protection, 350,000 of whom have not missed a payment for more than two years.

Service Chairman Hong Seong-pyo said the organization submitted the plan to the Financial Services Commission and is working with credit card companies.

“Those under personal bankruptcy protection cannot have credit cards because their credit ratings are under grade seven,” said a service source. “But to give them incentives, we are pushing for credit card issuance.”