According to the financial Services Agency, the number of debtors who borrowed money from over 5 finance companies was estimated about 1,250,000 at the end of December 2007 whereas it is generally said that the debtors in over-indebtedness are over 2,000,000.
It was reported in the session of the consumer issue committee of the rural democratic party.
The history and present condisiton concerning this issue in Japan is well explaiend in recent essay in English.
Categories: over-indebtedness
The METI may consider regulating an excessive sales of consumer product or service in door step selling. It shall be basis of the Specific Commercial Practices Act reform. The law revision is scheduled in current diet session.
According to the Jiji Press on 28th February 2008, a consumer can rescind a contract for a year that is considered as an excessive sales. Whilst the consumer can conduct his cooling off cancelation right, the consumer can cancel this contract even if a cooling off period terminated; but the bill does not stipulate the criteria regarding whether it is considered as excessive sales.
The concept of this article is based on the idea of a suitability rule. The rule tends to be referred in various types of consumer regulations except the financial services trading. The significant feature of this law revision is that the bill provides the rescission right to a consumer as a civil penalty. So far the breach of the suitability rule consists of administrative sanction in any consumer protection regulations. It may affect the coming Consumer Contract Law reform.
Categories: cancellation · doorstep selling · suitability · unfair trade practices
