Financial Times FT.com

Credia falls victim to loan clampdown

By Michiyo Nakamoto in Tokyo

Published: September 15 2007 04:15 | Last updated: September 15 2007 04:15

Credia, a mid-sized consumer finance company, on Friday filed for protection from creditors, becoming the first listed company to collapse as a result of a Japanese government and court clampdown on the industry.

Credia was forced to file for protection after a funding shortage, highlighting the financial difficulties consumer lenders are facing amid rising claims from borrowers for the repayment of excess interest.

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