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Financial watchdog to address unfair auto lease contract terms

All News 14:39 February 01, 2017

SEOUL, Feb. 1 (Yonhap) -- Consumers here will shoulder less financial burden for canceling car lease contracts under the related authorities' drive to address unfair business practices, the state financial watchdog said Wednesday.

The number of people leasing cars instead of buying ones has been on a constant rise. Consumers' complaints have increased as well.

A total of 192 civilian petitions related to car leases were filed with the Financial Supervisory Service (FSS) last year, up from 189 in 2015 and 188 in 2014.

Starting in the first half of this year, the amount of penalty for canceling contracts will be reduced in accordance with the remaining contract period.

So far, car lease firms imposed the same amount of fees on consumers regardless of the remaining term.

Credit card issuers will be also required to compensate for damage from theft or loss of cards that is incurred within 60 days.

A file photo about leasing a car (Yonhap)


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