The Supreme Court ruled Tuesday that moneylenders must disclose debt records to borrowers and that refusal to do so is an illegal act that constitutes a responsibility to pay compensation.
The No. 3 Petty Bench of the top court overturned an Osaka High Court ruling that had rejected a plaintiff's demand for redress from a consumer loan firm that had charged her interest above the legal rate. It sent the case back to the high court to decide on the amount of redress the woman should receive.
Records of loans and repayments are necessary when borrowers want to check their balance for debt adjustments or to claim refunds for what they have paid above the legal interest rate. In many cases, however, lenders refuse to disclose the information.
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