The number of plaintiffs came to about 450 in 28 prefectures. The litigants plan to demand that Aiful reimburse a combined total of ¥340 million in overpayments.

Satoshi Kono, an attorney for a nationwide organization probing Aiful's business practices, said that the lawsuits will be the biggest-ever legal battle against a consumer credit firm in Japan.

"Aiful is trying to create for itself a soft image through its ad campaigns, but in fact is exacting higher interest from its customers than they need to pay," Kono said.

The plaintiffs argue that Aiful charged interest on their loans that exceed the 15 percent to 20 percent per year limit under the Interest Restriction Law, thereby obtaining usurious interest gains.

Some plaintiffs are also seeking compensation for psychological damage over Aiful's refusal to disclose all transaction records, which they claim led to a delay in their repayment process.

The Japan Times Weekly: July 30, 2005
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