(1) A claims collection agency shall not appoint or hire any of the following persons, as its executive officers or employees, and nor shall it delegate, or conduct in a manner equivalent to delegation, the claims collection service to such person: <Amended on Apr. 18, 2017; Feb. 4, 2020>
1. A minor; provided, cases where he or she is appointed or hired for operations determined and publicly notified by the Financial Services Commission shall be excluded;
2. A person under adult guardianship or person under limited guardianship;
3. A person who has yet to be reinstated after having been declared bankrupt;
4. A person in whose case three years have not elapsed since the completion of, or exemption from, a sentence of imprisonment without labor, or heavier punishment, as so declared by a court (including cases where such execution is deemed to have been completed);
5. A person who is under a suspended sentence of imprisonment without labor or a heavier punishment as declared by a court;
6. A person who has been dismissed or discharged from office under this Act or other statutes, and for whom five years have not passed after such incident;
7. A person who had worked as an executive officer or employee of a corporation or company, permission, authorization, etc. of which was revoked under this Act or other statutes, and for whom five years have not passed after such revocation (applicable only to a person prescribed by Presidential Decree, who is directly responsible for the grounds for such revocation, or any person in the position equivalent thereto);
8. A person whose registration as a delegated claims collector under paragraph (2)2 has been revoked, and for whom five years have not passed after such revocation;
9. A person who is a retired executive officer or employee notified that he or she would receive a measure of recommendation of dismissal (including demand for dismissal) or demand for removal from office pursuant to this Act or other statutes if he or she held his or her official position or were under employment, and for whom five years (seven years from the date of his or her retirement where the date on which five years has passed from the date of notification is later than the date on which seven years have passed from the date of his or her retirement) have not yet passed from the date of such notification.
(2) A claims collection agency shall perform its claims collection service through any of the following persons:
1. Any executive officer or employee of a claims collection agency;
2. A person who has been delegated, or allowed in such a manner equivalent to delegation, to render claims collection service by a claims collection agency (hereinafter referred to as "delegated claims collector").
(3) A claims collection agency shall register a person who intends to serve as its delegated claims collector, with the Financial Services Commission.
(4) No delegated claims collector shall render any claims collection service for a claims collection agency where he or she is not employed.
(5) A claims collection agency shall neither collect claims that are not subject to collection, nor render claims collection service through a delegated claims collector falling under any of the following subparagraphs:
1. A delegated claims collector who is not registered under paragraph (3);
2. A delegated claims collector who has been registered with another claims collection agency;
3. A delegated claims collector who is suspended from his or her business under paragraph (7).
(6) The Financial Services Commission may cancel the registration of delegated claims collectors, if they:
1. Have been registered under paragraph (3) in a fraudulent or any other unlawful means;
2. Have violated an order for practice suspension or committed a violation subject to practice suspension under paragraph (7), after having received a disposition of practice suspension within one year from the date such violation occurred;
3. Deleted. <Feb. 4, 2020>
4. Have performed claims collection activities, in violation of any subparagraph of Article 9 of the Fair Debt Collection Practices Act;
5. Have violated any term or condition of registration;
6. Have failed to perform the registered business continuously for at least one year without good cause.
(7) The Financial Services Commission may order to fully or partially suspend the business within a specified period not exceeding six months, if delegated claims collectors: <Amended on Feb. 4, 2020>
1. Have violated paragraph (4);
2. Deleted. <Feb. 4, 2020>
3. Have violated Article 40(1)5;
4. Have violated subparagraphs 2 and 5 of Article 12 of the Fair Debt Collection Practices Act;
5. Have violated other statutes or regulations or the articles of association of their claims collection agency to severely harm or be likely to harm public interests.
(8) Where executive officers and employees who engage in claims collection business or delegated claims collectors intend to render claims collection service, they shall carry identification verifying their engagement in claims collection business and present it to debtors or the relevant persons defined in the Fair Debt Collection Practices Act. <Amended on Feb. 4, 2020>
(9) A claims collection agency shall faithfully manage its delegated claims collectors, so that they may observe the statutes and may not impair the sound transaction order in performing the claims collection service. In such case, it shall ensure that they do not commit a violation as classified in the following: <Added on Nov. 28, 2017>
1. Act of violating Article 8-3(1), 9, or 10(1) or subparagraph 1 or 2 of Article 11 of the Fair Debt Collection Practices Act;
2. Act of violating Article 8-3(2), subparagraph 3 through 5 of Article 11, Article 12, 13, or 13-2(2) of the Fair Debt Collection Practices Act.
(10) The qualification requirements and registration procedures for delegated claims collectors shall be prescribed by Presidential Decree. <Amended on Nov. 28, 2017>
(11) A person intending to be a delegated claims collector shall, when applying for registration as such, pay the fee, as prescribed by Prime Ministerial Decree. <Amended on Nov. 28, 2017>[Title Amended on Feb. 4, 2020]