Lenders Becoming More Stingy

The top four lenders in Japan, Takefuji Corp., Acom Co., Promise Co. and Aiful Corp. are shifting their focus to customers with good credit.

Previously the firms' approval rates were around 60-70%. However, those getting new lines of credit has dropped to the low 40% range.

Takefuji and Acom approved 49% of applicants. Aiful – 38% and Promise – 41%.

It is becoming difficult for existing borrowers to increase their lines of credit as well.

Presently the cap on interest rates for borrowers is a whopping 29.2%.

A new law was passed to lower the interest rate cap to 15-20%.

With that kind of interest rate…people who canNOT pay, might NOT be able to pay back, have no business even borrowing in the first place.

The finance companies are under fire because the number of people in Japan with multiple debts has increased, along with their inability to repay the loans.

Japan's government wants to help these people get out of debt…

Wow…I  hope someone in the U.S. is watching and learns how to get Americans out from under their credit card debts.

What do you think?