"Salary Factoring" First nationwide detection, Osaka Prefectural Police, July 29, 19:17
For the first time in Japan, the Osaka Police Department suspected violations of the Money Lending Business Law for a company that was lending by using a method called “salary factoring,” which purchases salaries in advance as credits and uses cash. It means that people who were in distress because of the new coronavirus were also using it.
According to the police, four employees including Shunichi Iwata (29), an employee of a financial company headquartered in Tokyo and operating under a trade name such as "D-line", are in fact Hyogo, although they have not registered for the financial industry. I was arrested on suspicion of violating the Money Lending Business Law for lending 200,000 yen to two male contract employees in the prefecture.
D-line uses "salary factoring," in which a company purchases the salary that it expects to receive as a bond in advance, and lends it using a cash-selling method. It is possible”.
The police believe that about 2800 people all over the country had used these companies in the four months to last month, but when they loaned 30,000 yen, they actually earned 12,000 yen, and in fact, It was a trick.
Some of the people who used it were in distress because of the new coronavirus, and the police are calling for them not to use it.
It's the first time in the country that police have caught up with a "salary factoring" contractor.