Japanese Consumer Lender Forced to Suspend Operations over Debt Collection

http://www.insidearm.com/news/00004000-japanese-consumer-lender-forced-to-suspen/

The Financial Services Agency on Wednesday ordered Sanwa Finance Inc. to suspend operations at all of its 415 outlets nationwide for overly aggressive debt-collection tactics and other violations, officials said.

The business suspension order, ranging from 44 to 66 days starting on April 23, is the longest period imposed on a major or medium-sized loan company for such infractions, the officials said.

Sanwa Finance debt-collectors repeatedly harassed borrowers with phone calls and other demands. Records concerning payments on interest were hidden. And the company’s manual actually encouraged such actions," according to the FSA.