are crying because they cannot pay the money," he said. "But I want people to know there are interest charges they don't need to pay, and there is a way to get that money back. . . . I hope these lawsuits will help (borrowers) rebuild their lives."
Attorney Kenji Utsunomiya told the media the suits would help free borrowers from their debts.
"I would like them to use the law as their weapon and fight," he said.
Critics often point out that the law has a double standard regarding interest rates.
The Interest Rate Restriction Law states that the maximum legal rate on loans is between 15 percent and 20 percent, depending on the amount borrowed. This civil law states that any interest charges exceeding the limits are void.
However, the Investment Deposit and Interest Rate Law, a criminal law, says the legal limit on loans is 29.2 percent. Those who charge more than the legal limit under its provisions can be imprisoned for up to five years and fined up to 10 million yen.
This, Utsunomiya said, leads to a gray zone for rates of between 20 percent and 29.2 percent -- interest rates in this zone are illegal, but violators are not charged under criminal law.
Most consumer loan companies set their interest rates in this gray zone, hesaid.
Because the gray zone interest charges exceed the limits under the Interest Rate Restriction Law, the plaintiffs' lawyers argue the borrowers should not have had to pay them and their payments should be refunded.