Even though banking system is implemented in mordern era, moneylenders are still common. People like gamblers and compulsive shoppers often get in trouble with a huge debt.
The regulation of moneylender is typically much looser than that for banks. In Japan, Moneylending Control Law requires only registration to each prefecture.
Comusmer loan companies are those who provides a money lending service to individual consumers and small companies rather than big corporations. Unlike banks, their service is limited to money lending because banks are usually reluctant to lend money to individuals.
Yamikinyu (loan shark)
In Japan, as the decade-long depression lingers, banks are reluctant to spare money and the regulation gets intesified, illegal money lending has become a social issue. Illegal moneylenders typically charge an interest of 30 percent in 10 days or 50 percent in 10 days, which are well over 1,000,000 percent in terms of annual rate. This is agint law that states the maximum interest rate is 29.2 percent. They usually do business with those who cannot get more money from banks, legitimate consumer loans or credit cards.