Toshiya BANDO
*Gifu Keizai University
Small Change on Consumer Credit Debts Collecting
System in Japan
Toshiya BANDO*
In consideration of harmonization for consumer protection relating to consumer credit transactions, nothing is more serious problem than the comprehensive consumer credit act is still not enacted in Japan.
But, in this paper, I dare to put this problem aside. And I try to report some small change on the legal procedure of consumer credit debts in Japan. From July 1992, the format and contents of the order for payment issued by the courts was reformed in the interests of consumers. After that date, when the courts send the order for payments to consumers, they must enclose the documents explaining the legal effect of the order for payment and the sample copy of action for objection with it. This small change made important result for consumer protection. The percentage of action for objection toward the number of the order has risen from 8.2% in 1991 calendar year (from April 1991 to March 1992) to more than 13.8% in 1992 calendar year. The number of action for objection in 1992 calendar year was 84,853. And it was almost twice as many as that of preceding calendar year.
The order for payment itself is not so easy to understand for the public in large. It is written in difficult legal terminology. And it is issued by the summary procedure. It means the order is issued only by materials from creditors without hearing from a concerned debtor. Many consumer credit institutions use this easy legal procedure for collecting of their debts. On the other hand, debtor without correct understanding for the order has lost their opportunity to make objection because of the lapse of period.
I think we need to give more weight to the importance of plain legal system especially in consumer law area. Consumers who have told their right plainly and intelligibly seem not to make a trouble of insisting their own right by themselves.
Number of Objection toward the order for payments issued by Osaka Summary Court
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