The Financial Services Commission announced on the 2nd that it will end the grace period for the Individual Debtor Protection Act on the 16th.
The Financial Services Commission made this decision during a regular meeting held that day. Since the law took effect on Oct. 17 last year, the commission has focused on guidance rather than sanctions. The commission evaluated that the new system has been established stably over the past five months and decided to conclude the grace period as scheduled.
The Individual Debtor Protection Act is a law aimed at preventing excessive arrears interest and collection burdens. It has newly introduced the right for individual debtors to request debt adjustment, reduction of arrears interest burden, and the limit on total collections to seven times in seven days.
According to the Financial Services Commission, as of the end of January, a total of 25,000 debt adjustments have been conducted. The most common type of debt adjustment was principal and interest reductions, with 14,412 cases (31.1%). This was followed by extensions of repayment periods (12,700 cases, 27.4%) and partitioning repayments (8,682 cases, 18.7%).