HUG terms and conditions that sounded twice for victims of charter fraud...Fair Trade Commission recommends correction

The terms and conditions of the Housing and Urban Guarantee Corporation and HUG, which allowed victims of lease fraud to cancel their guarantees, were recommended by the Fair Trade Commission.

The FTC has taken corrective action against HUG's terms and conditions that allow private rental housing landlords to cancel their guarantees without reason attributable to tenants if they sign a lease contract fraud or false or apply for a guarantee based on it.

The FTC explained that the terms and conditions do not fit the purpose of the Commercial Act, which requires the fraudulent insured to pay insurance money if there is no responsible reason, and give businesses the right to terminate that is not granted by law.

Furthermore, it does not fit the purpose of the private rental housing system of stabilizing people's housing and limits the basic rights of tenants under the guarantee contract.

Although the correction of the terms and conditions has no retroactive effect, the FTC's recommendation for correction in HUG's lawsuit related to the cancellation of the guarantee could positively affect the protection of victims, the FTC explained.

In fact, more than 150 people in Busan took away 19 billion won in deposit for lease on a deposit basis to a lessor who made a capital gap investment, and HUG canceled the tenant's guarantee based on the terms and conditions, and some victims are suing with HUG to receive the deposit.

In the process of receiving the report and reviewing the terms and conditions, the Fair Trade Commission said it asked HUG for voluntary correction, but decided that there was no intention of voluntary correction immediately, so it was advised to take corrective action.

If HUG fails to correct the terms and conditions within 60 days of the FTC's recommendation for correction, it will issue a correction order, and if it still does not, it can be charged.