It is hard to believe that this year is almost gone! But Christmas is coming and I can’t wait! In this time of the season, shopping malls are packed with many people. I am pretty sure that you are one of them being busy to prepare for Christmas gifts. While hanging around those big shopping malls, you may have easily noticed people from credit card companies. They are doing illegal sales promotion by offering free gifts and vouchers. Many people are often tempted by those offers and sign up for a new credit card issuance.
Here I would like to ask a question. Don’t you have too many credit cards in your wallet? My wallet is filled with lots of cards which I do not actually use at all. This is because I am easily persuaded by credit card sales promotions, whenever some free gifts or discount benefits are offered. However, as you may well know, holding multiple credit cards can threaten our credit ratings. Some households overuse their credit cards and then find it difficult to make payments, which results in overdue payments and household debts. To deal with this concern related to credit card overuse, the FSC strengthens its regulatory measures by forming a squad to inspect and regulate illegal credit card sales promotions.
So far, there has not been a strong crackdown on illegal credit card sales promotions. The previous inspection squad was comprised of 30 members from credit card companies, and it was considered ineffective as well as unprofessional. To address the weakness of previous system, FSC introduces a newly organized and improved system. First of all, the system broadens its channels of inspection. There are three ways to monitor and check illegal credit card sales promotions; continuous inspection, special inspection, and cyber squad.
If an illegal credit card sales is reported with a supporting evidence, the Financial Supervisory Service (FSS) will examine the case and make a final decision whether the case is an illegal promotion or not. This new supervisory system was effective from just few days ago, December 1, 2012. I think this new system is a great idea to prevent illegal credit card sales promotions. With this new implementation, we would expect that damages and risks incurred by illegal credit card sales promotions are minimized from now on.