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).
Debt Relief- View allLast updated: 2026-03-13
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
Free Tools for This Area
This article provides general legal information and does not constitute legal advice. For specific legal issues, please consult with a qualified attorney.
Related Articles
Personal Bankruptcy in Japan: Procedure and Consequences
Guide to personal bankruptcy in Japan: procedures, consequences, and what assets you can keep.
Debt Restructuring in Japan: Voluntary vs. Court-Supervised Rehabilitation
Comparison of voluntary debt restructuring and individual rehabilitation in Japan, including mortgage protection provisions.
Individual Rehabilitation in Japan: Keeping Your Home While Reducing Debt
Guide to individual rehabilitation (kojin saisei) in Japan, allowing debt reduction while keeping your home.
Related Q&A
Related Legal Terms
Find a lawyer through your local bar association
JFBA Legal Consultation Guide →