“I Lost My Card Abroad and Money Kept Draining… ‘Report It Immediately'”

[Anchor]

Despite the difficult economic situation, the demand for overseas travel continues to rise.

Consequently, incidents of losing or having credit cards stolen while traveling are becoming more common.

As we approach the vacation season, let’s find out how to handle such card incidents.

Reporter Shin Sung-woo, what should be done first?

[Reporter]

According to the Financial Supervisory Service, if you lose your card or have it stolen abroad, the first step is to report it immediately.

Credit card companies are responsible for unauthorized use that occurs up to 60 days before they receive notice of the card loss or theft.

In other words, promptly reporting the incident can maximize compensation for unauthorized use.

However, it’s important to note that depending on the degree of fault, customers may have to bear some of the cost and might not receive full compensation.

Especially for travel cards issued by electronic finance companies, which aren’t covered under the specialized credit finance laws, there is no obligation to compensate for unauthorized use before reporting it, so caution is necessary.

However, unauthorized use that occurs after the report is compensated, so a quick report post-loss is essential.

[Anchor]

Moving on, I’ve heard there’s a right to dispute installments as a countermeasure for installment payments, but it’s not foolproof, right?

[Reporter]

That’s correct.

The right to dispute installments refers to the right to refuse payment of the remaining installment amounts during an installment contract period.

This can be exercised when services or goods are not properly provided.

However, since you need to prove that the service was not provided, it’s crucial to keep the contract, which details the transaction, until the end of the installment deal.

The financial authorities explain that the right to dispute installments can’t be exercised if the installment contract is concluded for business purposes.

Examples include online advertising contracts made with SNS advertising agencies or vending machine installation contracts made with rental companies.

Additionally, transactions involving agricultural, marine, livestock products, and pharmaceuticals on installment aren’t subject to installment dispute rights.

This is Shin Sung-woo from SBS Biz.