[THE INVESTOR] The financial regulator on Sept. 13 alerted consumers against loan sharks who threaten family members of borrowers, telling them such acts are illegal.

The Financial Supervisory Service said it has received 483 complaints this year as of July about abuse and threats from unregistered lenders over returning money borrowed by a family member. The annual interest rate on loans from such lenders is 3,476 percent.

Reported cases include a father who was threatened to pay back his son’s loans and a mother who came under similar threats for money borrowed by her daughter. The loan sharks get the contact numbers of families when lending the money, according to the regulator.

The regulator issued a notice telling consumers that it is illegal to force a family member to pay back a loan, and that such act is punishable by a maximum three years in prison or 30 million won (US$27,012) in fines. Money borrowers were also advised not to give out the contact information of family members or relatives and to use registered private lenders.

(theinvestor@heraldcorp.com)