Remedy of unfair terms and conditions that paid up to 96% of rental arrears by passing on installation costs

The unfair terms and conditions of rental companies who pass installation costs to customers and charge excessive arrears fees will be changed.

The Fair Trade Commission announced on the 21st that 7 rental service providers, including Kyowon Property, SK Magic, LG Electronics, Cheongho Nice, Coway, Cuckoo Homesys, and Hyundai Rental Care, have corrected 13 types of unfair terms and conditions.

The Fair Trade Commission conducted an ex officio investigation into the terms and conditions of seven major business operators as the number of consumer complaints and civil complaints increased year by year as the rental industry grew significantly. The operators voluntarily corrected the provisions during the investigation process.

Six companies, except for Hyundai Rental Care, imposed a 15-96% annual delay in damages when a customer defaults on the monthly rental fee. The Fair Trade Commission considers that it imposes an unreasonably heavy duty to compensate customers when compared to the statutory interest rate under the Commercial Act and the Civil Act, and decided to change it to 6% per annum.

SK Magic, Coway, Cheongho Nice, Cuckoo Homesys, and Hyundai Rental Care received installation fees when they shifted the cost of installing rental products to customers or when the contract was canceled due to customer circumstances. In consideration of the Civil Act and the standard terms and conditions for rental of water purifiers, the Fair Trade Commission made the company bear the installation cost in case of early installation or mid-term termination. The provision of passing the demolition cost to the customer when the contract expires or the contract is canceled due to the company’s responsibility was judged unreasonably unfavorable to the customer and the business operator was required to bear it.

The Fair Trade Commission requires that the rental registration fee be returned to the customer when the contract is canceled due to the operator’s fault. The provision that allows the customer to arbitrarily withdraw to another normal card owned by the customer has been deleted if the credit card designated by the customer to pay the rental fee cannot be approved due to exceeding the limit.

If the customer checks the agreement agreement box once, it is deemed that the customer agrees to the terms of service and the privacy policy at the same time, and the provision of information to a third party unrelated to the rental service or use of the information for the purpose of event information is prohibited. The part that was stipulated as a mandatory consent item was also changed to obtain an unfair consent for each.

In addition, regulations that require the customer to bear the cost of disposing of goods in the event of mid-term cancellation due to customer circumstances, and the provision of charging the monthly rental fee for the month in which the contract begins regardless of the actual number of days of use, have been corrected. The Fair Trade Commission said, “We will continue to check unfair terms and conditions in the rental service market in the future.”

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