I Signed Up for a Savings Plan Because They Said They’d Give Me a Laptop... But It Turned Out to Be a Funeral Service and Rental Contract [The Essentials of Consumption]

[Financial News]#. "I signed up because they said it was a savings plan that came with a laptop as a free gift, but it turned out to be a funeral service contract."A 25-year-old man, identified as A, received a phone call in 2024 while serving in the military. The counselor, who was also a recruiter, explained that if he signed up for a savings-type product, he would receive a laptop as a free gift. A, a young job seeker who needed a laptop, signed the contract without much suspicion.
But when A looked over the contract again some time later, he realized that the product he had signed up for was not a savings plan but a funeral service package. The laptop he thought was a free gift was also a separate rental contract. A immediately asked to cancel the contract, but the company said he would have to pay 5.7 million won for the laptop. The normal market price of the product was around 2 million won. A eventually filed for dispute mediation with the Korea Consumer Agency (KCA).
According to the KCA on the 30th, there have recently been frequent cases in which people are induced to sign up for funeral service-linked products through verbal explanations such as promises of expensive electronics as free gifts or claims that the full amount will be refunded at maturity. Under the Korea Fair Trade Commission (KFTC)'s notice, the Consumer Protection Guidelines for Prepaid Installment Transactions, when a product is sold by bundling it with another product, consumers must be clearly informed in advance that each item is a separate contract, along with key details such as the contract price, monthly payment amount, payment period, and the scope of withdrawal rights.
Accordingly, it is prohibited for sales staff at electronics stores to market bundled products by describing a prepaid installment contract as a 'savings plan,' or to lure customers by saying that if they sign up for the prepaid installment product, they will receive an electronic device as a free gift, even when the prepaid installment product and the electronic device are separate installment contracts.
After reviewing the recording made at the time of enrollment, the KCA confirmed that the recruiter encouraged A to sign up by emphasizing that he was a young job seeker who needed a laptop, and that the funeral service product was also presented in a way that made it seem like a savings product.
The agency explained the possibility of improper sales and recommended that the company cancel the contract. The company agreed to cancel the funeral service contract and refund the amount A had paid. As for the laptop, the parties agreed to settle the payment in a lump sum based on the current market price, rather than the originally demanded 5.7 million won.
The KCA urged consumers to be cautious about funeral service-linked products that lure them in with verbal explanations that make them appear to be savings plans. A KCA official said, "You should carefully review the contract to check whether there are separate agreements, and closely examine key terms such as the contract price and payment period. If necessary, you should keep recordings and other materials related to the contract so that you can later prove improper sales or other issues."
[email protected] Kim Hyun-ji Reporter