Lotte Card, Toss Bank, Hana Capital rated poor in consumer protection

Lotte Card, Toss Bank and Hana Capital were ranked “poor” in consumer protection, reflecting weaknesses in internal controls, rising consumer losses and a spike in complaints over the past year, according to the country’s financial watchdog, Thursday. The findings come as the government intensifies oversight of financial service providers over their sales practices and internal controls following a series of financial incidents and consumer disputes. Institutions rated “poor” are required to submit improvement plans and may face additional management-level meetings with regulators. According to the Financial Supervisory Service (FSS), the companies were among eight that received the low rating in this year’s financial consumer protection assessment. The annual assessment measures how effectively financial institutions prevent consumer harm, manage complaints and operate internal controls. The results are used by the FSS to guide follow-up inspections and corrective actions. Hana Capital’s low rating reflected a sharp rise in complaints and a large-scale factoring-related fin