The current law provides for the right to request a reduction in interest rates, allowing individuals who have entered into credit agreements with banks to request a rate reduction if their credit status improves, such as through an increase in assets or an improvement in their credit rating. Additionally, the law mandates that banks inform individuals entering into credit agreements that they have the right to request a reduction in interest rates.

However, despite the legal foundation for the right to request a reduction in interest rates being established over six years ago in 2018 under the Banking Act and other financial regulations, concerns have been raised about the limited practical effectiveness of this system. The criticism points to a lack of sufficient guidance from banks regarding the right to request an interest rate reduction and the differences in the methods and duration of this guidance across banks.

To address this, the proposal aims to strengthen consumer rights by requiring banks to inform individuals entering into or having already entered into credit agreements of their right to request an interest rate reduction on a quarterly basis (Article 30-2, Paragraph 2 of the proposed amendment).

The proposal imposes an obligation on banks to allow individuals receiving credit facilities from them to request a reduction in interest rates (Article 30-2, Paragraph 2 of the proposed amendment).