Steps in place to protect bad loan collectors from gangs.
TOKYO, Dec. 24 Kyodo The National Public Safety Commission on
Thursday set new regulations to protect collectors of bad loans held by
financial institutions from crime syndicates, commission officials said.
They said the new measures will be implemented next spring along with
the proposed ''servicer'' bad loan collection law,
which would open the business of collecting bad loans to people other
than lawyers, as is currently the case. The new regulations would allow
the director general of the National Police Agency to keep tabs on the
activities of gangsters, the collection status of the worst delinquent loans and the operations of servicers, and if necessary, direct police
to investigate specific cases. The servicer law would empower the
justice minister to approve licensing for servicing companies to help
screen out firms tied to the underworld, the officials said.