Regulatory Alerts2018-10-11
Supervisor of Banks: Proper Conduct of Banking Business - Debt Collection Proceedings
The Supervisor of Banks issued this Directive to enhance fairness and transparency in debt collection proceedings by regulating bank-customer relations beyond existing statutory provisions. The document mandates that banking corporations establish a dedicated debt collection function, ensure Board and senior management oversight, and strictly control agents handling collections. It further requires precise disclosure of penalty interest formulas, proportional notice frequencies, and regular reporting to the Execution Office to protect households and small businesses.
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