Monday, September 27, 2010

Japanese consumer lender Takefuji may file for bankruptcy

Lending laws passed in 2006 went into effect on June 18, capping interest rates at 20 percent and prohibiting lending to borrowers with consumer debt equal to a third or more of their annual income. In June, more than 60 percent of Japan’s 3,900 registered lenders were yet to comply with a rule requiring them to sign up with credit information firms, meaning they can’t make new loans, according to Japan Credit Information Reference Center Corp. and Credit Information Center Corp.

Takefuji, founded by Yasuo Takei in 1966, was listed on the Tokyo Stock Exchange in December 1998. The shares have plunged 99 percent since their peak of 19,300 yen reached in August 1999.

I guess they couldn't stay in business by "only" charging 20% interest to borrowers.

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