Illegal money lenders (yamikin) charge usurious rates (e.g., 10% per 10 days). Supreme Court (2008) ruled borrowers have NO repayment obligation, not even principal, as loans constitute "performance for illegal cause" (Civil Code Art. 708). Penalties: up to 5 years for usury (Interest Rate Restriction Act Art. 5), 10 years for unlicensed lending (Money Lending Act Art. 11). Contact police (#9110) or Legal Aid (0570-078374).
Combating Illegal Money Lenders (Yamikin) in Japan: Rights and Remedies
Key Takeaways
- ✓There is no legal obligation to repay loans from illegal lenders
- ✓Illegal collection practices are subject to criminal penalties
- ✓Hiring a lawyer often stops collection harassment on the same day
- ✓Legal proceedings should be pursued alongside police consultation
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