South Korea's Fair Trade Commission investigates eight companies over alleged unfair terms and conditions in used car loans

It was learned on the 8th that South Korea's Fair Trade Commission is investigating eight companies suspected of having set unfair terms and conditions in contracts with used car loan intermediaries.
According to the industry, the FTC recently sent documents to eight capital companies, including Hyundai Capital, KB Capital, and Woori Financial Capital, requesting documents related to used car financing operations.
It is said that they have secured the terms and conditions of the contract. In the used car market, Capital does not deal directly with dealers, but instead provides loans through agents, who are intermediaries. The agent introduces the loan to the customer.
It is a system in which a portion of the installment interest is received as a fee. The installment interest rate is determined by taking into consideration factors such as procurement interest rate, collateral risk, and marketing costs. The recruiter pays nearly half of the installment interest rate.
They say they earn it as a commission. The JFTC is investigating whether Capital has unfair terms and conditions, such as imposing excessive penalties or exposing buyers to risks.
. The business report released on the same day also stated that the company will take strict action against unfair practices. A JFTC official said, ``We cannot disclose details regarding incidents that are under investigation,'' but added, ``
We will thoroughly investigate any violations of the law."