Press Conference by Yuji Yamamoto, Minister for Financial Services

(Excerpt)

November 10, 2006

Q.

The first topic I would like to bring up is the new requirement for a moneylending business to notify, when closing down its business, to which party its credits will be assigned and what collection policy applies. Please give us your opinion about what effect an action like this one is going to have, or is expected to have, in cracking down on illegal moneylenders and other related steps in the future.

A.

Let me begin with the moneylending business issue. The proposed Money-Lending Business Control and Regulation Law amendments, if actually enacted, will likely result in a considerable number of business closedowns. In the light of business closedown procedures, this will come with credit and debt adjustments, which will then necessitate collection procedures for the debts that have become due or accelerated. While there are a variety of estimates as to how much the amount of those debts will add up to, it will certainly be a considerable amount. Therefore, any ensuing collection procedures carried out all at once or in such a fashion as would be called oppressive debt collection will likely bring about anxiety to and security concerns in society. It was specifically in this sense that we have taken steps to add to and strengthen the requirements for items subject to notification upon business closedown; we also intend to work further on keeping dishonest businesses out and preventing acts of illegal collection by such means as credit and debt transfer, and also on ensuring user protection through and through by, among other things, finding out facts and sharing information, as well as enhancing cooperation with police and other relevant authorities.

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