Japan’s $200bn consumer finance industry has never looked pretty, but it has always proved attractive. GE Capital and Citigroup are among those that bought Japanese moneylenders, undeterred by the industry image of loan sharks driving hapless salarymen into bankruptcy and even to suicide.

Now regulators are planning their own strong-arm tactics, threatening the industry’s profitability. First came a suspension order on Aiful Corp, the biggest consumer lender, which employed overly aggressive methods for collecting loans. Regulators, backed by ministers, want to lower the 29.2 per cent maximum interest rate charged by moneylenders.