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- Research for Displacement of Consumer Finance Market from Nonbank to Yamikin
Research for Displacement of Consumer Finance Market from Nonbank to Yamikin
Hiroshi Domoto
Tokyo University Information Science
Today, excessive lending and aggressive collections practices by illegal lenders (Yamikin) have abated somewhat in the most recent Survey period. On the other hand, a new class of “softer” illegal lenders (soft Yamikin) are targeting borrowers who were refused credit by licensed lenders. While using collections practices that are generally less abusive and violent than hard-core Yamikin, These soft Yamikin nonetheless charge illegally usurious interest rates and engage in lending above legally set lending caps. Significantly, the Survey of prospective borrowers revealed the fact that soft Yamikin users not only ceased to fear Yamikin, but also felt a certain sense of gratitude for being able to borrow money, and were less aware that they were victims.