What Are The Disadvantages Of Overpaid Billing?
“People who borrowed prior to Heisei ◯, and those who have a trading period of more than a year may receive money back”
CM about the overpaid bill which has recently disappeared.
In the first place, overpayment refers to the “interest” that is currently in debt or has been overpaid by people in the past.
And the overpayment request is to sue to be able to return the interest paid this too much.
It is a very good thing that the overpaid interest returns.
However, in some cases , there is a disadvantage that the credit information may be damaged by overpayment.
If you are aware of overpayments, first check if you can claim overpayments and if there are any disadvantages with overpayments, then move on to action.
This time, I will introduce the mechanism of overpayment and the disadvantages of overpayment billing.
table of contents
- What is overpayment? Gray Zone Interest Rate and Overpayment Scheme
- Condition of person who can make overpayment request
- Pre-2007 debt is likely to be overpaid
- Overpaid billable period is within 10 years after completion (with exception)
- Disadvantages of overpaid bills! Credit information may be black
- There is also the possibility of unplanned debt consolidation and foreclosures
- If overpaid to Sanyo Shinpan you will be able to settle the Promise debt too
- If Seven Bank’s debt repayment is overdue, it affects Acom’s overpaid bill
- Possibility of car foreclosure if overpaid during repayment of car loan at Oriko
- There is also the possibility of unplanned debt consolidation and foreclosures
- Can you avoid the disadvantages? ? Let’s calculate how much it comes back with overpayment request
- The overpaid bill will not return in full! It is a trial if you wish full return
- Consult with a lawyer or judicial scrivener if you are troubled by overpayment request (consulting fee, start fee free)
- 【Summary】 There is no disadvantage of overpayment for people who pay off! Consult now
What is overpayment? Gray Zone Interest Rate and Overpayment Scheme
Overpayment was introduced at the beginning as “interest” paid too much.
The reason for overpayments is that there were two laws , the interest rate control law and the investment law , which differ in the maximum interest rate until the loan business law revision in 2010.
|Interest rate restriction method|
|Maximum interest rate||
※ There are two contradictory contents
|Maximum interest rate||Year 29.2%|
|problem||If the investment interest rate limit is exceeded, you will be subject to criminal penalties.
※ You can not punish unless you exceed
The following interpretations can be made by comparing the two laws.
- Even if you lend over the interest rate limit of interest rate law, there is no problem as long as the payer pays at will.
- It is OK if it does not exceed the maximum interest rate 29.2% of the investment law.
As a result, the gray zone interest rate existed between the interest rate limit rate and the equity rate limit rate.
Until the Supreme Court ruled out gray zone interest rates in 2006, most of the moneylenders used the contradictions of the law and lent money at the upper limit of gray zone interest rates that could not be punished.
If you owe money at this gray zone interest rate, you may have overpaid money.
Now let’s take a closer look at when you owe money and you are overpaid.
Condition of person who can make overpayment request
In order to make an overpayment request, the conditions must be met.
The rough terms are the debt borrowing period and the number of years since repayment .
Pre-2007 debt is likely to be overpaid
Gray zone interest rates began to decline on January 13, 2006.
A lender called Citis, a subsidiary of Aiful, did not respond as “not against the law” when asked to return the interest paid over at the gray zone interest rate.
However, on January 13, 2006, the Supreme Court ruling ruled that “the debtor’s payment is not an arbitrary payment but is forced to be paid”.
The ruling of the Supreme Court clarified the invalidation of the gray zone interest rate, and the bill on revising the Money Lending Business Act was enacted and issued.
|Supreme Court Decision “Gray Zone Interest Rate Invalid”|
|Financial Agency Summary
We set a grace period of 9 years until gray zone interest rate abolition, and maintained the interest rate in the meantime
|Bill finally approved by the Cabinet (appearing three years)
|Completely cut interest rates|
Under these circumstances, many lenders will lower the loan interest rate by the time the revised bill comes into effect.
The interest rate reduction date of each lender and some of the interest rates before and after the revision were summarized.
|Name of each lender||Current maximum interest rate||Interest rate reduction date||Maximum interest rate before revision|
|Acom||18%||June 18, 2007||27.375%|
|Aiful||18%||August 1, 2007||28.35%|
|Promise||17.8%||December 19, 2007||25.55%|
|Lake||18%||December 2, 2007||29.2%|
|Dick (now CFJ)||New acceptance stop||August 21, 2007||22.88%|
|Saison Card||18%||July 14, 2007||twenty four%|
|Ion credit||18%||March 10, 2007||25.6%|
|Epos Card||18%||March 16, 2007||27%|
|Sedina (OMC)||18%||September 2, 2007||28.8%|
In this way, you can see that the rate reduction date varies depending on the vendor.
And if you borrowed money before the day the rate cut took place, you might have overpaid money.
Looking at the table, it is possible to say that money borrowed prior to 2007 is likely to be overpaid, as interest rates are being reduced from March to December 2007.
Overpaid billable period is within 10 years after completion (with exception)
Request for refund of overpayment is within 10 years from the date of final repayment (the date of repayment).
If ten years or more have passed, the right to claim for unfair gain return will be extinguished due to statute.
With unfair gain return right of claim
The right to demand return of the benefit to those who have benefited from the loss of others without legal reasons.
If you do not use the right to claim anything for 10 years, the civil law will stipulate that the right will expire.
However, you can claim overpayments for the first day of borrowing and the first repayment date more than 10 years ago.
The longer the repayment period, the higher the interest rate, and the longer the transaction history, the higher the overpayment.
In addition, if the debt being repaying is overpaying, it is possible to request overpayment , but if you can not pay off the debt you are repaying with the money to be returned, you will have to debt (about debt consolidation If you want to know more, please refer to “Characteristics and advantages / demerits of debt consolidation” .
In addition, there are two cases where you may be granted overpaid claim rights even if you paid off over 10 years ago.
- Completed once at least 10 years ago and then borrowed from the same lender within 10 years
- With debts paid off, the moneylender’s collection was illegal with assaults and threats
In the above two cases, the legitimacy and credibility of the claim become very important, and the money from the moneylender’s case, so it is almost always the case that the court judges whether there is a claim.
Disadvantages of overpaid bills! Credit information may be black
I’m glad that the overpaid interest will bring back the overpaid interest, but I would forgive you if there are any disadvantages.
The disadvantages of overpaid billing are different for people who have already paid off and those who are still repaying debt.
Person who paid off
- There is a time limit for overpayment refund request.
If 10 years or more have passed since the last repayment date, overpayment can not be requested.
It is better to act early because a lender who has become difficult to manage due to overpayment may be reluctant to go bankrupt and return
- It is not possible to borrow again from an overpaid vendor.
Person who is repaying
- The accident information is on the credit information agency.
If the debt remains even if the overpaid money returned is used for debt repayment, it means that the debt has been restructured, and the accident information is posted to the credit information agency.
※ If accident information is received, there is a high possibility that new loan and credit contract can not be made
- It is not possible to borrow again from an overpaid vendor.
The common disadvantage is that you can not borrow money from the vendor if you overpay .
For those who do not intend to borrow money from now on, it will not be a big problem.
Those who have paid off will not be able to claim overpayments if it has been over 10 years since they were paid off.
It is a waste of money not to do anything when there is money coming back.
If you have already paid off your debt before 2007 and you have not been 10 years old, you may want to claim an overpayment immediately.
You need to be careful if you are claiming an overpayment for the debt you are currently repaying.
Even if the overpaid money returned is used to repay the current debt, accident information will remain in the credit information if it can not be repaid in full.
Debt consolidation information is held for about 5 years by credit information agencies (10 years because self-bankruptcy and personal revitalization will be decided by the court).
In the meantime, it will be difficult to make a loan or make a credit card.
If you are planning to use a mortgage-based education loan in the future, we recommend that you overpay the bill, also considering the timing of the loan contract.
There is also the possibility of unplanned debt consolidation and foreclosures
In fact, past claims for overpayment of debt may result in debt consolidation of the current debt, or foreclosure of property.
Here are three examples of unexpected disadvantages of overpaid billing.
If overpaid to Sanyo Shinpan you will be able to settle the Promise debt too
It is not uncommon for vendors to want to request overpayments already gone.
In the 2010 overpayment refund claim boom, weakened lenders have become bankrupt, and have been transformed into major consumer credit absorptions and mergers, and becoming a group company of banks.
The Pocket Bank (a consumer finance brand of Sanyo Shinpan) which is absorbed by a promise is one of them.
If you borrow money from Pocket Bank and claim overpaid debt, the contact will be a promise.
At that time , if there is a debt that is being repayed by promise, the debt consolidation information will be registered in the credit information if the promised debt can not be paid off with the returned overpayment.
The same applies to old quarks (now Kravis) who have inherited mergers, acquisitions, and trades in the same way.
※ Promise is a guarantee company of Sumitomo Mitsui Banking Corporation card loans, but even if overpayment is made to a promise, it does not affect Sumitomo Mitsui Banking Corporation card loans.
If Seven Bank’s debt repayment is overdue, it affects Acom’s overpaid bill
Bank card loans are often made by consumer finance and credit companies as guarantors.
If you have a delinquent debt that you need to repay to the bank, the guarantor will repay the debt in bulk instead.
This is called subrogation .
Once the payment is made, you will be billed by the guarantor and you will have to make repayments to the guarantor.
For example, if you are in the process of claiming an overpayment to Acom, if the debt repayment from Seven Bank is delayed, Acom will make a payment to Seven Bank.
If this happens, you will have to pay more to Acom, even though you have been in the process of claiming an overpayment for Acom’s past debt.
If you can not pay off the remaining debt due to overpayment, the black information will be registered with the Credit Information Agency, as it will be necessary to consolidate the debt to Acom.
Possibility of car foreclosure if overpaid during repayment of car loan at Oriko
The credit card of a credit company is a convenient card that can be used for shopping loan and cashing with one card.
You can also charge overpayments for credit card cashed debts.
However, the amount used for shopping is under the law of the Installment Sales Act for the substitute money (not for borrowing money but for the credit sales company to pay for shopping instead), so overpayment Will not occur.
※ The installment sales method does not pay interest but split fees.
Therefore, even if you make an overpaid bill for money that you overpaid for cashing, if you can not pay off the shopping usage with the returned money, it means that the credit card itself has been deducted, and the black information is registered in the credit information agency Will be
The same is true if you are overpaid for Orico Card cashing usage while contracting and repaying a car loan at Orico.
If the car loan can not be paid out due to the overpayment, the debt will be reduced, and as a result, the car may be seized (reclaimed).
Can you avoid the disadvantages? ? Let’s calculate how much it comes back with overpayment request
He stated that the disadvantage of overpayment of debt that is still being repayment is that if the current debt can not be paid off with the returned interest, it would be debt consolidation.
This means that you can avoid this disadvantage by the amount the overpayments are refunded.
If you calculate the amount to be refunded before making an overpayment request, you will be able to decide whether the overpayment request should be made.
In order to calculate the amount to be refunded for overpayment, you need to calculate interest repayment.
The portion paid at an interest rate that exceeds the current interest rate restriction method will be nullified and used for the principal (the money originally borrowed). It recalculates and charges back the interest paid more than that.
Here is how to calculate the correct principal balance.
Remaining principal = principal + legal interest + arrears-repayment amount
- Legal interest = principal × interest rate with interest rate ÷ 365 × number of days borrowed
- Delinquency = principal × delinquent interest rate ÷ 365 × arrears interest rate is interest rate of interest restriction method (*) × 1.46 (interest rate of interest restriction rate in specific mediation)
※ The interest rate of interest rate restriction method is 20% annual interest rate under less than 100,000 yen, 18% interest rate over 10 million yen and less than 1 million yen, and 15% annual rate over 1 million yen principal.
In fact, most people may find it difficult to get the correct bill with the above calculation method.
There is also free software that can calculate the amount of overpayment and the exact amount, so you might want to try it.
- Adritem judicial scrivener (outside calculation method)
- Nagoya Consumer Credit Problem Study Group (Nagoya formula calculation method)
Whichever you use the two above, you will get the same results, so it’s better to choose the one that is easier to handle.
The most important thing in this repayment calculation of interest is “enter correct information (transaction history)”.
Transaction history refers to the history of repayment and borrowing from the day the borrower borrowed from the moneylender to the present (both repayment and completion). You
※ We can do it by window, telephone, document mail, fax, the Internet.
If you enter the details of the transaction that you have disclosed in the recalculation software, you will know the amount of money returned in the overpaid bill.
The software will do the calculation, but be careful not to make a mistake in the amount of money you enter.
If you charge more than the actual overpayment, it may be that the lender does not accept the request and refuses to return it.
In order not to do so, the calculation must be accurate.
Points to know exactly how much the overpayment is returned
- If you have a long history of transactions, are unsure about your input, etc., or have a fear of miscalculation, ask a lawyer, a judicial scrivener, etc. for experts.
- Don’t trust the “overpayment free diagnosis” which can be calculated only with the amount of debt and repayment years
The overpaid bill will not return in full! It is a trial if you wish full return
An overpayment request is a procedure that requests the moneylender to return the overpaid money.
The outcome of this request is determined by the two parties’ talks (negotiations).
If you ask for it, there may be many people who think that all the money you have returned will be returned.
In fact, almost no contractor returns 100% of the bill.
If you ask for a full refund, you will be filing a lawsuit.
In some cases, some vendors claim that overpayments themselves are not occurring.
Even in such cases, overpayment may be permitted depending on the judgment.
The main points of the overpaid refund claim lawsuit are summarized.
Transaction volume issue If you borrow money, pay off, and borrow money with the same vendor again, repeat them as a series of transactions or do you repay interest as a series of transactions (series calculation), redraw each as individual transactions Compete on whether to calculate (division of trading).
Of course, if you calculate as a series of transactions, the overpayment amount will be larger, so the money lender will argue as a separate transaction. Estimated calculation, zero calculation
- Estimated calculation
When a transaction history is disclosed, some vendors have discarded the old history of the past. In such a case, it is presumed that the transaction content is based on the other evidence, and the overpayment amount is calculated by performing the redraw calculation.
- Zero calculation
If the vendor does not respond to the transaction history disclosure, the transaction history does not start from “lending” but starts from “borrowing balance” status, so the original debt is considered as zero, and repayment is made. How to calculate the amount of money as overpayment.
These two credibility and rationality will be contested in the court. Succession of overpayment repayment debt (debt transfer) If there is a transfer of receivables among the lenders and an overpayment has occurred at the stage of the transaction with the transferor, can the overcharge be included in the part who received the transfer? Problem.
Cases that differ in case by case.
When you hear a lawsuit, there is a bother of the procedure, and you become anxious at once, saying “Can your family know about debt?”
However, if you ask an expert (lawyer or judicial scrivener), you will be acting as a representative from the disclosure of the transaction history, and your family and friends will not know about debt.
If you can not make overpayments, you can arrange them at will, so even if you want to reduce your debt, you can leave it to your family.
Consult with a lawyer or judicial scrivener if you are troubled by overpayment request (consulting fee, start fee free)
If you ask a lawyer or judicial scrivener, you’re worried about the cost.
It makes no sense if you have made a request for overpaid bills and have not paid back in the end and you still have to pay a lawyer’s fee.
Therefore, when I checked the homepages of various lawyer offices and judicial scrivener offices, most of them became “consultation fee free and start money free” .
If the overpayment is returned, it seems that it is common to pay the percentage as a reward.
However, it is dangerous to ask a lawyer or judicial scrivener just because it is cheap.
For overpaid bills, ask an expert who has many overpayments collected during voluntary and legal negotiations.
Below is a summary of the costs associated with overpaid bills from law firms that are commonly found on TV commercials.
|Avance Legal Office (Judicial Scribe)|
|Consultation fee, start fee||Free * Consultation is free for any number of times|
|Procedure fee||50,000 yen per creditor company|
|Success fee (if overpayment occurs)||0% if the overpaid amount recovered is 120,000 yen or less.
20% if the overpaid amount recovered is more than 120,000 yen.
※ 22% if recovered in a lawsuit.
Find out more about Avance Legal Office
|Sugiyama Office (a judicial scrivener)|
|Consultation fee, start fee||free|
|Reward||20% of the refund amount|
View the details of Sugiyama Office
※ Judicial scriveners can only proceed on behalf of matters less than 1.4 million yen.
In the case of overpaid bills that include optional arrangement, pay attention to the total amount of debt.
“There may be overpayments, so I don’t want my family to know because I have already paid off.”
If you are willing to charge for an overpayment, consult a lawyer or judicial scrivener first.
【Summary】 There is no disadvantage of overpayment for people who pay off! Consult now
Overpayment requests have only merit for those who have paid off.
Has anyone who is currently suffering from debt repayment has had no debt in the past?
It is possible that debt will be reduced by the overpayment returned, and debt may be lost depending on the amount.
It is free if you just consult a lawyer or judicial scrivener.
As a result of consultation, it is almost free to ask if overpayment has occurred.
It would be nice if you could compare the merits and demerits of overpaid bills and make choices that would benefit you a lot.