Regulations Governing Internal Operating Systems and Procedures for the Outsourcing of Financial Institution Operation Article 16

A financial institution shall comply with the following provisions in outsourcing its debt collection operations:1. A financial institution shall heed any complaints made by a debtor or any third party regarding debt collection practices, and inquire the relevant information in the outsourcing service providers and employees registration system created by the JCIC in a regular and timely manner; when there are material incidents which require the service provider to dismiss unfit employees pursuant to the outsourcing agreement, or which require the financial institution to terminate the outsourcing agreement with the service provider, a financial institution shall take actions in accordance with these Regulations and the outsourcing agreement.2. If a service provider or any of its employees has been reported to the JCIC by other financial institutions pursuant to subparagraphs 5 and 6 of Article 15 herein, but the incident is not significant enough to constitute grounds for termination of the outsourcing agreement, the financial institution shall step up the frequency and scope of audits of the service provider.3. Where a service provider has engaged in any practice that violates any of the provisions in Article 14 herein and makes it unacceptable to the debtor and the debtor contacts a financial institution directlyto negotiate the settlement of debt, the financial institution shall accept the request of the debtor and actively handle the matter.4. Where a financial institution finds that its service provider or any of its employees resorts to violence, coercion, or intimation in the collection process, it shall report the matter to law enforcement authorities.5. A financial institution shall not give its service provider information on people who do not have legal obligation to discharge debt.6. Prior to outsourcing its collection operations to a service provider, a financial institution shall send debtors a written notice, informing them of the name of the service provider, amount of debt owed, the duration of retention of audio recordings of collection procedures, the telephone number (of the financial institution) for making a complaint, and practices prohibited in Article 14 herein.7. A financial institution shall make public the basic information of its service provider at its business places and on its website to make it convenient for debtors to check the relevant information of the collection agency.8. Where a service provider providing debt collection services is turned over to the law enforcement authorities due to alleged use of violence in the collection process, a financial institution may terminate its outsourcing agreement in view of the severity of the case, and shall terminate the outsourcing immediately if the service provider is indicted.